Identifier
Created
Classification
Origin
09LISBON29
2009-01-15 14:01:00
UNCLASSIFIED
Embassy Lisbon
Cable title:
PORTUGAL'S NEWSPAPERS SHOW SURPRISING STRENGTH
how-toVZCZCXRO7693 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHLI #0029/01 0151401 ZNR UUUUU ZZH R 151401Z JAN 09 FM AMEMBASSY LISBON TO RUEHC/SECSTATE WASHDC 7288 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 LISBON 000029
SIPDIS
E.O. 12958: N/A
TAGS: PGOV SCUL ECON SOCI PO
SUBJECT: PORTUGAL'S NEWSPAPERS SHOW SURPRISING STRENGTH
UNCLAS SECTION 01 OF 02 LISBON 000029
SIPDIS
E.O. 12958: N/A
TAGS: PGOV SCUL ECON SOCI PO
SUBJECT: PORTUGAL'S NEWSPAPERS SHOW SURPRISING STRENGTH
1. SUMMARY. Newspaper readership may have declined in
recent years in the U.S. and other western countries, but in
Portugal circulation of daily newspapers increased by six
percent from 2007 to 2008. Media consolidation has only
started here in recent years, but those newspapers that are
part of the Controlinveste chain are doing even better than
their competition. We attribute the growth in daily
newspaper sales to a combination of social factors: rising
income and education, as well as internet usage that is still
low by European standards. We would expect that, in coming
years, as more Portuguese turn to the internet for their
news, newspaper sales will peak and then decline. END
SUMMARY.
PORTUGUESE DAILIES INCREASE CIRCULATION
--------------
2. The newspaper trade group Portuguese Circulation
Association (APCT) has released statistics showing that the
five major Portuguese daily newspapers increased their
circulation by an average of 6% from 2007 to 2008, a bump of
21,000 copies per day. Portuguese dailies now sell 346,000
copies per day (which does not count the 425,000 copies of
free newspapers distributed daily). The Portuguese market
has two large dailies (Correio da Manha and Jornal de
Noticias) with daily sales over 100,000, plus three smaller
players (Publico, Diario de Noticias, and 24 Horas) all in
the 40,000 range. All these papers grew last year, with the
sole exception of Publico, which showed no change. All five
are tabloid format, but they vary in content and tone from
high-brow Publico to scandal-and-soccer 24 Horas.
Separately, the business dailies Diario Economico and Jornal
de Negocios also showed healthy growth rates.
Copies sold daily: 2007 2008 change
Correio da Manha 117,164 119,692 2%
Jornal de Noticias-x 92,610 104,419 13%
Publico 41,913 41,912 ...
Diario de Noticias-x 37,226 41,437 11%
24 Horas-x 36,221 38,288 6%
TOTAL 325,134 345,748 6%
x = Controlinveste assets
JOAQUIM OLIVEIRA LEADS CONSOLIDATION
--------------
3. There are no Gannett-style media monoliths here, nor
significant foreign ownership of Portuguese media, but a
recent consolidation trend is setting the standard. While
his media holding group Controlinveste has been around since
the 1990s, Joaquim Oliveira became Portugal's answer to
Rupert Murdoch in 2005 when he bought another holding company
called Lusomundo and created Controlinveste/Global Noticias.
Controlinveste owns three of the big five dailies listed
above -- perhaps not coincidentally those with the greatest
growth rates. The strong showing of Oliveira's empire
suggests that this is a model for the future. Oliveira's
assets include traditional newspapers (Jornal de Noticias and
Diario de Noticias),tabloids (24 Horas),soccer papers, a
free daily (Global Noticias),an all-news radio station
(TSF),and three cable TV sports channels. Oliveira also
owns stakes in telecom leaders Portugal Telecom and ZON
Multimedia.
BUCKING THE TREND
--------------
4. By contrast, U.S. daily newspaper circulation continued a
longer term trend by falling 4% last year, with ad revenue
losing 3%. Nearly every major paper except the two largest
(USA Today and Wall Street Journal) reported circulation
declines. Editors cite online news sources as their primary
competition, noting that total readership (i.e., print plus
online) actually grew by 2% last year. European print
circulation also fell by 2% last year, but editors see their
key competition coming from free dailies, which account for
23% of circulation in Europe (and 55% in Portugal). But the
healthy Portuguese print media are not the outliers they
might appear at first glance. Worldwide print newspaper
readership is, in fact, rising -- particularly in developing
countries like India, China and Brazil. While there is not a
straight-line correlation, many of the European countries
whose economies were historically poorer than the EU average
(e.g., Estonia, Ireland, Romania, Turkey) are showing
increased print media readership. Portugal falls into this
category.
5. However, the free dailies offer a cautionary note: after
explosive initial growth, Portugal's free-distribution
dailies are now retrenching. Among the major free papers,
year-old weekly "Sexta" suspended publication effective
January 9 while investors assess its future. "Meia-Hora",
which targets upper-class readers, will be distributed
exclusively in offices. Meanwhile, business-themed free
LISBON 00000029 002 OF 002
weekly "Oje" (circ. 22,000),which was voted "Best Free
Paper" of 2008, is now sold for one cent on newspaper stands.
Among the generalist free dailies, Controlinveste's "Global
Noticias" (circ. 200,000) is likely to maintain its
readership and increase its distribution areas, while smaller
competitors will have to work hard to maintain the ad revenue
that keeps them viable.
SOCIAL FACTORS AND INTERNET PENETRATION
--------------
6. Portugal's population of 11 million has a literacy rate
of 93% (eight points higher than in 1990); Portuguese GDP has
climbed from 42% of the EU average in 1960 to 77% today; but
only about one-third to one-half of Portuguese are internet
users (in most EU countries this figure is over 50%),and one
recent survey put "digital illiteracy" here at 54%. Thus the
Portuguese are becoming better educated, wealthier, and more
interested in and linked to the world around them, but they
are not getting their news from internet sources as
frequently as citizens in richer western countries. As a
result, daily print newspapers have enjoyed a steady growth
in demand. We would anticipate that as internet usage
becomes more widespread, and with the continued growth of
free dailies throughout Europe, that sales of paid print
newspapers would peak in coming years and then show the
inexorable decline seen in other western nations.
COMMENT - REACHING HEARTS AND MINDS
--------------
7. Portuguese newspapers will, for the coming years, remain
at the core of anybody's strategy to impact and change public
understanding of key issues. Decision-makers and
opinion-leaders here are keenly aware that the media
environment in which they operate is a few years behind the
the technological changes defining the US market. But for
now, Portuguese get their news from traditional sources: TV,
radio, print newspapers and magazines.
STEPHENSON
SIPDIS
E.O. 12958: N/A
TAGS: PGOV SCUL ECON SOCI PO
SUBJECT: PORTUGAL'S NEWSPAPERS SHOW SURPRISING STRENGTH
1. SUMMARY. Newspaper readership may have declined in
recent years in the U.S. and other western countries, but in
Portugal circulation of daily newspapers increased by six
percent from 2007 to 2008. Media consolidation has only
started here in recent years, but those newspapers that are
part of the Controlinveste chain are doing even better than
their competition. We attribute the growth in daily
newspaper sales to a combination of social factors: rising
income and education, as well as internet usage that is still
low by European standards. We would expect that, in coming
years, as more Portuguese turn to the internet for their
news, newspaper sales will peak and then decline. END
SUMMARY.
PORTUGUESE DAILIES INCREASE CIRCULATION
--------------
2. The newspaper trade group Portuguese Circulation
Association (APCT) has released statistics showing that the
five major Portuguese daily newspapers increased their
circulation by an average of 6% from 2007 to 2008, a bump of
21,000 copies per day. Portuguese dailies now sell 346,000
copies per day (which does not count the 425,000 copies of
free newspapers distributed daily). The Portuguese market
has two large dailies (Correio da Manha and Jornal de
Noticias) with daily sales over 100,000, plus three smaller
players (Publico, Diario de Noticias, and 24 Horas) all in
the 40,000 range. All these papers grew last year, with the
sole exception of Publico, which showed no change. All five
are tabloid format, but they vary in content and tone from
high-brow Publico to scandal-and-soccer 24 Horas.
Separately, the business dailies Diario Economico and Jornal
de Negocios also showed healthy growth rates.
Copies sold daily: 2007 2008 change
Correio da Manha 117,164 119,692 2%
Jornal de Noticias-x 92,610 104,419 13%
Publico 41,913 41,912 ...
Diario de Noticias-x 37,226 41,437 11%
24 Horas-x 36,221 38,288 6%
TOTAL 325,134 345,748 6%
x = Controlinveste assets
JOAQUIM OLIVEIRA LEADS CONSOLIDATION
--------------
3. There are no Gannett-style media monoliths here, nor
significant foreign ownership of Portuguese media, but a
recent consolidation trend is setting the standard. While
his media holding group Controlinveste has been around since
the 1990s, Joaquim Oliveira became Portugal's answer to
Rupert Murdoch in 2005 when he bought another holding company
called Lusomundo and created Controlinveste/Global Noticias.
Controlinveste owns three of the big five dailies listed
above -- perhaps not coincidentally those with the greatest
growth rates. The strong showing of Oliveira's empire
suggests that this is a model for the future. Oliveira's
assets include traditional newspapers (Jornal de Noticias and
Diario de Noticias),tabloids (24 Horas),soccer papers, a
free daily (Global Noticias),an all-news radio station
(TSF),and three cable TV sports channels. Oliveira also
owns stakes in telecom leaders Portugal Telecom and ZON
Multimedia.
BUCKING THE TREND
--------------
4. By contrast, U.S. daily newspaper circulation continued a
longer term trend by falling 4% last year, with ad revenue
losing 3%. Nearly every major paper except the two largest
(USA Today and Wall Street Journal) reported circulation
declines. Editors cite online news sources as their primary
competition, noting that total readership (i.e., print plus
online) actually grew by 2% last year. European print
circulation also fell by 2% last year, but editors see their
key competition coming from free dailies, which account for
23% of circulation in Europe (and 55% in Portugal). But the
healthy Portuguese print media are not the outliers they
might appear at first glance. Worldwide print newspaper
readership is, in fact, rising -- particularly in developing
countries like India, China and Brazil. While there is not a
straight-line correlation, many of the European countries
whose economies were historically poorer than the EU average
(e.g., Estonia, Ireland, Romania, Turkey) are showing
increased print media readership. Portugal falls into this
category.
5. However, the free dailies offer a cautionary note: after
explosive initial growth, Portugal's free-distribution
dailies are now retrenching. Among the major free papers,
year-old weekly "Sexta" suspended publication effective
January 9 while investors assess its future. "Meia-Hora",
which targets upper-class readers, will be distributed
exclusively in offices. Meanwhile, business-themed free
LISBON 00000029 002 OF 002
weekly "Oje" (circ. 22,000),which was voted "Best Free
Paper" of 2008, is now sold for one cent on newspaper stands.
Among the generalist free dailies, Controlinveste's "Global
Noticias" (circ. 200,000) is likely to maintain its
readership and increase its distribution areas, while smaller
competitors will have to work hard to maintain the ad revenue
that keeps them viable.
SOCIAL FACTORS AND INTERNET PENETRATION
--------------
6. Portugal's population of 11 million has a literacy rate
of 93% (eight points higher than in 1990); Portuguese GDP has
climbed from 42% of the EU average in 1960 to 77% today; but
only about one-third to one-half of Portuguese are internet
users (in most EU countries this figure is over 50%),and one
recent survey put "digital illiteracy" here at 54%. Thus the
Portuguese are becoming better educated, wealthier, and more
interested in and linked to the world around them, but they
are not getting their news from internet sources as
frequently as citizens in richer western countries. As a
result, daily print newspapers have enjoyed a steady growth
in demand. We would anticipate that as internet usage
becomes more widespread, and with the continued growth of
free dailies throughout Europe, that sales of paid print
newspapers would peak in coming years and then show the
inexorable decline seen in other western nations.
COMMENT - REACHING HEARTS AND MINDS
--------------
7. Portuguese newspapers will, for the coming years, remain
at the core of anybody's strategy to impact and change public
understanding of key issues. Decision-makers and
opinion-leaders here are keenly aware that the media
environment in which they operate is a few years behind the
the technological changes defining the US market. But for
now, Portuguese get their news from traditional sources: TV,
radio, print newspapers and magazines.
STEPHENSON