NEWSPAPERS MUST change their business models if they want to survive in the 21st century, according to a new report on the global newspaper industry by accountancy firm PricewaterhouseCoopers.

The report finds that a plunge in advertising revenues and the migration of readers to free online editions has left the newspaper publishing industry in “a state of turmoil”, but that it can escape its current difficulties by investing in new multi-platform advertising technologies and developing more specialised content.

Newspapers in Ireland and the rest of Europe will have more time to adapt than their US counterparts because readers are not deserting newspapers as swiftly.

Ann O’Connell, a partner with PwC’s entertainment and media practice in Dublin, said newspaper readership here was deep-rooted and that Irish readers were likely to “continue to place a significant value on the commentary and opinion provided by the well-established newspapers”.

The PwC report, published in conjunction with the World Association of Newspapers, was based on surveys of 4,900 readers in Canada, France, Germany, the Netherlands, UK, US and Switzerland and interviews with publishers and media buyers.

It found consumers were willing to pay more for “high value, topic-specific” publications rather than general news.

Ongoing difficulties in reading online content on mobile devices means that users tend to access newspaper content for short “breaking news” items rather than in-depth data, PwC said.

This difficult reading experience, combined with data transfer charges imposed by telecom companies, meant consumers were unwilling to pay for online content. However, consumers do not yet regard e-reading devices such as Amazon’s Kindle as substitutes for full newspapers, it found.

The newspaper of the 21st century will be a “super brand” that is not tied to the print medium, according to the report. For example, the use of video in online news sites gives users the feel of a “TV-like” experience.

The journalist of the future will have total editorial control for the creation and delivery of content, including photographs and video as well as text, it concludes.

Newspapers that have failed to seek new audiences beyond their traditional print readership may now find that the only option left open to them is a merger or acquisition, PwC said.

However, the PwC report said it is “not all doom and gloom” for the industry. Although the US market is facing severe difficulties, in markets such as India, both traditional print circulation and advertising revenue are growing.

“Despite the current difficulties facing the market, this is an exciting time to be part of the newspaper industry,” Ms O’Connell said.