Japan: Newspaper industry "relatively recession-proof" but dying

Posted by Lauren Drablier on October 27, 2008 at 12:13 PM

According to the Washington Post the Japanese newspaper industry is doing well for now, but doomed in the future because of its aging population and the fact that Japan's youth do not read newspapers. In addition, Japan's population is declining; in 50 years the government estimates that Japan will have one-third the population of its 127 million today.

Although the end of newspapers in Japan is in sight, Japan's newspapers are doing very well despite all odds. They have avoided large-scale layoffs and have retained readership figures.

According to Masaki Satsuka, manager of the circulation section at the publishers and editors association, by only putting 20% of newspaper content on the Internet they have managed to retain readership numbers. They have done so because according to Satsuka, there is no efficient business model that allows them to gain sufficient revenue for online advertising.

Furthermore, "Japanese newspapers have no intention of giving away on the Web what their readers remain willing to pay for in print," he added.

In addition Japan has a 99 percent national literacy rate and 85 percent of the population trusts what is reported in newspapers (versus a mere 20 percent of U.S. readers who believe what they read in newspapers).

However, as in the United States, advertising in Japan has been declining. Japan has seen a nine percent decrease in advertising over the past four years.

Source: Washington Post