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The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.

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Styria has the highest circulation revenue, Hanza Media the highest print advertising revenue

The Croatian Competition Agency (CCA) carried out a market investigation into the Croatian press publishing market in 2015 and 2016 with the view to defining the market shares of the relevant market participants. The data base so obtained reflects the market structure of the relevant market. The market investigation covered the undertakings listed in the Register of press publishers and distributors of the Croatian Chamber of the Economy in line with the Media Act. This market investigation included a total of 53 newspaper publishers and distributors.

The market study involved the following segments: press circulation (general information dailies and weeklies), print advertising in general information dailies and weeklies and press distribution in the territory of the Republic of Croatia.

Legal framework

The press publishing market in Croatia is regulated under the Media Act that beside other matters stipulates how to protect competition in the public information domain.

The Media Act prohibits any concentration in the general information dailies or weeklies publishing industry where the post-merger market share of the parties to the concentration would exceed 40 % of the total circulation market in the territory of Croatia.

That is to say, the market share in the newspapers publishing industry is calculated exclusively based on the number of copies sold (circulation) in the territory of Croatia regardless of the range of distribution with respect to the national and regional papers. Thus, the market including the local, regional and national dailies and weeklies is being defined as a comprehensive general information press publishing market. Taking this definition into consideration, the market shares recorded in the relevant market concerned include also the foreign press sold in the territory of Croatia.

Daily newspapers circulation market

There were 73.7 million copies of general information dailies sold in Croatia in 2016. In comparison with the preceding year this was a fall by 8 % that was recorded by all daily newspapers publishers.

Like in the last four years, the daily “24sata” (by Styria grupa Hrvatska) has had the highest circulation in 2016. Its market share has been between 30 % and 40 %. The market leader is followed by the “Jutrarnji list” (by Hanza Media Grupa) holding a market share of 20 % to 30 %, whereas the third place on the circulation list has been taken by the “Večernji list” (by Styria grupa Hrvatska) whose market share has been between 10 % and 20 %.

The above mentioned leading dailies are followed by the “Slobodna Dalmacija” (Hanza Media Grupa) and the “Novi list” (Glas Istre), that are both regional dailies and that both recorded the circulation shrinkage compared with 2015. Their market shares are from 5 % to 10 %.

The ownership structure reveals that the highest share of some 50 % to 60 % in the general information daily newspapers market (“24sata” and “Večernji list”) in 2016 has been held by Styria grupa Hrvatska (controlled by Styria AG), which is a slight decline compared with the previous year.

The combined market share of the “Jutarnji list” and the “Slobodna Dalmacija” of Hanza Media Grupa was 30 % to 40 % in the general information daily newspapers market in 2016 and therby indicated a slight increase in the combined market share.

The third group – Glas Istre, owning the publishers of the “Novi list”, “Glas Istre” and “Zadarski list”, held a combined market share of some 10 % to 20 % in 2016. The controlling interest over these there daily newspapers publishers was taken by JOJ Media House, a.s., from Slovakia in July 2016.

The concentration indicators show that the general information daily newspapers market is highly concentrated and records no significant changes since 2015. The CR4, that is to say, the combined market share of the four dailies with the highest circulation was 83.38 % in 2016, compared with 2015 when it was 83.35 %.

HHI in the general information daily newspapers sector in 2016 was 2.146 points whereas in 2015 it was close to 2.141 points – the figures undoubtedly indicate a highly concentrated relevant market.

Weeklies circulation market

There have been 4.3 million copies of general information weeklies sold in Croatia in 2016. Although every copy sold has been included in the calculation regardless of the range of distribution (national or regional) the figure declined by 13 % compared with the previous year.

Most weeklies circulation fell; exemptions were “Hrvatski tjednik”, “Nacional”, “Mali podravski” and “Bjelovarski list”.

“7Dnevno”, published by Portal dnevno d.o.o. under bankruptcy has had the highest circulation. However, it also indicated the falling circulation trend in 2016. The second place has been taken by the weekly “Globus” published by Hanza Media Grupa whereas the weekly “Međimurje”, published by List Međimurje d.o.o. from Čakovec has occupied the third place. All the above mentioned leading weeklies have had the market share between 10 % and 20 %.

Print advertising market

Advertising in general information dailies and weeklies make up for 75 % of the total revenue of the publishers from advertising.

The total revenue that the publishers made from advertising in the daily papers in 2016 was 167 million Kuna or 12 % less than in the previous year. The advertising revenues of all the dailies publishers, besides the publisher of the “Novi list”, dropped sharply. The leading dailies publishes in the print advertising market in 2016 were Hanza Media d.o.o. and Večernji list d.o.o. They hold almost a half of the advertising market in general information dailies.

Hanza Media Grupa, the publisher of the “Jutarnji list” with a market share of 20 % to 30 % is the market leader in the dailies advertising market. Where the market share of the “Slobodna Dalmacija”, the third rival in the market with 10 % to 20 % market share, is combined to the market share of the above mentioned “Jutarnji list”, that makes Hanza Media Grupa the most powerful group in the dailies advertising market.

According to the ad revenues the “Večernji list” takes the second place with its ad generated market share of 20 % to 30 %, whereas the other member of the group, the “24sata”, with its market share of 10 % to 20 % occupies the fifth place on the list. The combined data indicate that Styria Grupa Hrvatska takes the second place in the dailies advertising market.

The “Novi list” is on the fourth place taking into account its market share of 10 % to 20 % and unlike its rivals it recorded only a slight decline in the advertising revenues.

The individual market shares of the other four general information dailies publishers (“Glas Slavonije”, “Glas Istre”, “Zadarski list” and “La Voce del Popolo”) in 2016 were lower than 10 %.

The HH index in this relevant market in 2016 was 1.663 points whereas in 2015 it was 1.668 points, which indicates a moderately concentrated market. It must be noted that the shrinkage in ad revenues was much more significant in the daily newspapers than in the weeklies where the fall in ad revenues was negligible and amounted to only 1 %. Total revenues from advertising in weeklies were 27.77 million Kuna and it must be noted that the highest and the most stable ad revenues have been recorded by the regional and local weeklies.

Thus, the local general information weekly “Dubrovački vjesnik” holds for a second year in a row a market share of 10 % to 20 % and the leading position (published by Dubrovački vjesnik d.o.o. within Hanza Media Grupa). Its biggest rival is the local weekly “Varaždinske vijesti” (published by Varaždinske vijesti d.o.o.), whereas the national weekly “Globus” (published by Hanza Media Grupa) holds the third position. In other words, the combined market share of Hanza Media Grupa in this relevant market in 2016 was 20 % to 30 %.

Press distribution market

There was only one player present in the press distribution market (wholesale) in 2016 – the undertaking Tisak d.d. from Zagreb that experienced a revenue fall.

With respect to the press retail market the CCA included in its market investigation exclusively the sales of newspapers in specialized newsagents’ and tobacco shops owned or leased by distributors in kiosks or similar standalone shops, the sales in kiosks owned by other undertakings that primarily do not act as distributors, the subscription sales and newsboys’ sales (direct sale by the publishers) and the sales based on NewspaperDirect’s digital newspaper distribution of foreign press for hotels.

The market investigation did not include the sales in other non-specialized shops or in specialized shops by undertakings who do not dispose of a retail network or chain of shops.

The data collected by the CCA indicate that the total revenue realized from the press retail in 2016 amounted to 362.7 million Kuna or 5 % less than in the previous year.

Compared with 2015 there was a retail growth recorded by most publishers with the exception of the publishers of the “Večernji list”, “Slobodna Dalmacija” and “Glas Slavonije”, whereas a retail drop was experienced by the traditional newsagents Tisak and iNovine that own the majority of the specialized retail shops. However, taking into account the raising trend indicated by the newspaper publishers in the retail of newspapers, it is apparent that the newspaper publishers have increased their direct sales and subscription sales with the view to strengthening their independence from the press distributors and retaining the part of the revenue.