The UK news agencies market has struggled substantially over the past five years. While already experiencing declining demand as a result of media fragmentation, the financial crisis exacerbated the industry's difficulties, even causing some agencies - such as Raymonds News Agency and Kent News and Pictures - to go bust.
In 2011-12, industry revenue fell by 1.2% after a brief respite in 2010-11, following three years of consecutive revenue decline. Revenue is expected to fall a further 3.1% in 2012-13, to roughly £1.82 billion.
The capital requirements of news agencies have changed remarkably over the past decade, particularly in the past five years.
The growth in internet usage over this period, making online sites now the primary source of news for much of the population, has created enormous media content demands, but its open-information dynamic has also created a means of eroding market share currently held by traditional news publishers.
The significance being, without consumer reliance on traditional media, the scope for revenue to flow through to news agencies is considerably reduced.
There were over 1,400 local news agencies in 2012, up from 1,363 in 2006. The number of the largest companies remained stable, while there was a rise in the number of micro-sized companies of 8%. Almost 99% of the companies were micro-sized or small - employing fewer than 50 people - including those news correspondents that worked individually and were self-employed.
Companies such as British Sky Broadcasting Group and British Broadcasting Corporation are amongst the global leaders providers of news and information worldwide, accounting for 50% of total market size in UK.
Print media accounts for 60% of total industry, but digital media grows rapidly as 23% of UK consumers get news on at least two digital devices.
Additional leading companies within the UK news agencies industry include The Associated Press Ltd, The Press Association Limited, and Thomson Reuters.
Over 2013-2016 industry turnover is forecast to grow by 7%, with the contribution that print media makes to earnings for B2B publishers is expected to fall by 7%, while the contribution digital media makes is expected to increase by almost 7%, amounting to approximately one-quarter of B2B revenue.
For more information on the UK news agencies market, see the latest research: UK News Agencies Market
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