The newspaper publishing industry in Europe is undergoing a transition
and is confronted with serious challenges from the increasing role of
the Internet and the hereto-related changes in media consumption habits.
Europe is a region, where Internet usage not only has been on a
relatively high level but also increased substantially with likely
effects on newspaper publishing. This article analyses the development
and determinants of the profitability of newspaper publishing sectors of
12 European markets. The average profitability of newspaper publishing
is shown to vary both across countries and over time. The results from
the econometric estimation prove the assertion that the price–cost
margins can not only be explained by the increasing uptake of Internet
but also by factors reflecting scale economies and the degree of the
competitive pressure.