Life in print media

Pratim Ranjan Bose

Deputy Editor & Chief of Bureau
Business Line, Kolkata
Part I

News Media in doldrums

Overview of global and Indian media scene
from business perspective
News Media in doltrums
Print Media the grand old man of media.
Storehouse of journalistic abilities. But
now in crisis.
TV Media In the late middle ages. But
suffering from early ageing.
Web The new kid on the block.
Holds promise. Future uncertain.

Global print media ailing
All legendary print media including Newsweek,
Time, Guardian, NYT, FT winding up editions.
To go entirely on web.
Consistent drop in reading habits. Lack of
interest to pay for high cost content and fall in
advertisement revenue are culprits.
Getting lower share of advt compared to TV
India print media scene1
India has larger number of readers than in the
West.
Readers are acquired at a cover price lower
than Bangladesh and Pakistan.
The dependence on advt has gone up from 50-
60 % to 80-90% in last two decades.
Economic slowdown impacted advt market
Media ethics & Independence of media at
stake in tight advt market.




Indian print media 2
Quality conscious English media, who
were investing in journalists, worst hit.
Financial media burn cash.
Times Group an exception.


Mixed scene in vernacular print
Extremely crowded market.
Invests little on journalists.
Ethical standards are questionable.
Stock market says some Hindi
newspapers Like Dainik Bhaskar and
Jagran are making big money.
Not an encouraging picture.


TV under pressure
Big daddy of spot reporting.
Eats more cash than print.
Globally facing competition from web
based citizens journalism.
Stalwarts like CNN, BBC under pressure.
Merging with web. Sports channels make
huge money.
In India most news channels burn cash.

Web - only promise
Can emerge as a merged entity of both
print and TV
Print may cut the entire cost of ink and
paper and delivery cost of paper.
But globally no one no one makes money
from digital ventures.
Same story as e-commerce. Everyone is
going for it. But no one struck gold.

Top losers in India
In June NDTV made first profit in last five
quarters. Net margin 2.2 %.
TV-18. Has many products. Huge loss in
Q1 (including one time settlements)
HT media Q1. Top line dropped in election
season. June NPM 5.5%. Print and Radio.
The Hindu made a loss in Q1. English and
Tamil print media.
Top gainers in India
Times of India Group. Many products. Burning
money on TV. No clarity on news operations.
PAT up by 30% in 2013-12. NPM 14.64 %
Dainik Bhaskar (Hindi print and Radio) Net
increased by 30% 2013-14. June NPM 16.20 %
Jagran (Hindi print) 11 per cent drop in Net to
Rs 226 crore in 2013-14. June NPM 13.5


Analysts view National print
Low growth in advertisement market due
to poor economic growth.
Not enough meat for everyone.
Times having control over 50 per cent of
national print market and wide product
basket, elbowing everyone out.
Radio and equity swap deals are profit
churners.



Analysts view on Hindi
Major growth in readership in vernacular
due to literacy.
Attracting advt for its wide reach in the
cow-belt. Advt rates firming up.
Offers low wages
Compromises on print quality. Uses local
newsprint.

Many doubts
Can news be so profitable? That too in a
overall tight advertisement scenario?
India may have to wait for the real story.
Part-II


Real threats for media: Journalism is
pass.
Conventions behind media
business -1
Built on social democratic ideals that is tolerant
to criticism for greater social benefit.
Govt expected to protect journalists from the
backlash of interest groups and ensure fearless
dissemination of information.
Media barons largely had a principled view.
Didnt look at it purely for making money. Indian
Express paid a heavy price for opposing the
Emergency.
Great institutions were created worldwide.




Conventions behind media
business -2
Journalists are most valuable resource.
He should work independent of the
revenue interests of the paper.
BBC was a critic of the British government
even though its was financed by the
government

The fall of Berlin wall
Weakening of Institutions
Democratic West no more takes a high
moral stand against Totalitarian or
autocratic governments in the East.
There are strong campaigns to shun
democracy for economic growth.
RoI is sacrosanct.


End of top Western institutions
From cheque book journalism to
embedded journalism America is fast
becoming a journalist-free country.
Top European Institutions getting weak
and aligning with power - be it capital or
politics.
Reuters is now a signboard.
BBC lost its teeth. Journalists hounded.
The Economist stands out.
Alarm in Indian newsrooms
Shrinking newsrooms. Declining ability.
Media mushroomed. Journalism suffered.
Increasing grip of crony capitalism.
Bias in news selection.
Capital and politics wants media to serve
vested Interests.
Part-III



Everything is not over yet
Some are still holding on
Some old media houses are yet to give in
to the market pressure.
The Hindu group CEO does not have say
on Editorial policy.
The Hindu Business Line made a slender
profit in FY14.
Everyone is looking forward to web as
game changer.
Web a saviour?
In five years many papers, especially pink
papers will be predominantly web-based.
It will save cost of ink & paper, delivery
costs and, revenue share with trade.
Should get direct access to readers
anywhere in the world.
Will offer both print an audio experience to
subscriber.
May reduce dependence on advt.

The big question?
Are there readers for serious content.
Journalists hate pg-3 news. But they sale
most.
The rich-poor gap is increasing. Nouveau
riche shows little interest in non-lifestyle
stories.
Stories on jeans outlandish colours are get
more eyeballs.



Protect good media
Good media is essential for better living
No independent, credible source of info
will put business decisions at risk.
Tata and Reliance burnt fingers at Singur
and Raigad for ignoring ground reality.
The world is ever changing but, values are
eternal.
Read more


Lets hope for the best



Thank you &
Best wishes to you all