After publishing of the Metro started in May 2002, there has been a wave of free newspaper published so far, and the number is still increasing. Growth of the free newspapers has negative impact, such as deterioration of the quality of media, and posi...
After publishing of the Metro started in May 2002, there has been a wave of free newspaper published so far, and the number is still increasing. Growth of the free newspapers has negative impact, such as deterioration of the quality of media, and positive one, say increased subscriber base, simultaneously.
Thus, in this article, the correlation between what transformation the growth of free newspaper has brought into the newspaper market, and how it influences subscription of existing paid newspapers will be analyzed, and to advise the newspaper industry’s growth based on this, the following research issues are chosen.
1. What are the motives of usage and satisfaction rate of free and paid newspapers?
2. What correlation do vitalization of free newspaper and subscription of paid newspaper have, and what is the variable directly influencing subscription rate of paid newspaper?
3. What kind of threat does growth of free newspapers pose to paid newspapers?
4. What kind of relationship between free and paid newspapers is most proper for the sake of the newspaper industry as a whole?
As a result of the research, first, free newspapers are used for its free price and during commuting hours, and paid newspapers are read to gain accurate, professional and deep information. Also, paid newspapers fulfill the function of media such as depth, accuracy, opinion leadership and expertise, so has high satisfaction rate, but they are not satisfied by free newspaper’s media fuction.
Secondly, subscription rate of paid newspaper has decreased by 15% compared to before the emergence of free newspapers, but the reason for the decrease appears to be online news search and burden of subscription fee, so it has low correlation with free newspaper. And thirdly, after emergence of free newspaper, newsstand market has diminished, and it is expected that there would be a change in newspaper market such as low-quality media, so free newspaper might pose a threat to paid newspapers.
Lastly, free newspapers have specialized area in distribution area, quality and quantity of the contents, and subscriber group, and paid newspapers need to strengthen their media function by changing paper and improving the contents.
Thus, for development of newspaper industry, it is suggested that first, improvement of depth, expertise and discrepancy; second, recovery of credibility of the media institutions and news contents; and third, expansion of high-quality contents that can meet the multi-channel environment and fee charging of online contents to create new profit base.