Norwegian media economy 2014
The Norwegian Media Authority has published its annual report on Norwegian media economy. It shows that commercial broadcasting has increased its revenues, but that the development of the media industry as a whole is marked by the decline in the newspaper economy.
The media economy report 2014 analyses the economics of newspapers, online newspapers, and radio and TV. These media’s total revenues amounted to almost 26 billion NOK in 2014, which is a decrease of 300 million NOK from 2013.
Greater revenues for broadcasting
For the first time, this year's report provides a picture of the broadcasting companies' operating revenues in Norway. The authority estimates their 2014 revenues to 16.5 billion NOK, representing an increase of 37 per cent over five years. From 2013-2014, the increase was almost 9 per cent. Behind the growth are the commercial players, particularly in the TV sector.
Decreasing profitability for newspapers
Most Norwegian newspapers are still profitable, but the profitability is affected by the sharp decline in print ads. Increasing digital revenue from advertising and digital circulation do not compensate for the fall in print revenue. Despite a sharp increase for digital circulation revenues – up 146 per cent from 2013 to 2014 – they represent just 5.5 per cent of the publishing houses’ overall circulation revenue.
International pressure on the Norwegian media market
Advertising revenues accruing to international companies like Google and Facebook are a challenge for the domestic media industry. The report notes that it is difficult to find accurate figures on their revenues in Norway, but estimates Google's and Facebook's 2014 revenues on the Norwegian market to just under 1.9 billion NOK and around 800 million NOK, respectively. International streaming companies like HBO and Netflix now also have solid positions in the Norwegian market. Based on user data from TNS Gallup, their combined turnover in Norway is estimated to approximately 700 million NOK in 2014.
About the report: The Norwegian Media Authority publishes annual reports on the Norwegian media industry's economics. The information is based on own data collection and other available sources. For companies where data are not available, the report is based on estimates.
BY: EVA HARRIE