IMI - Kolkata

8/11/2019 IMI - Kolkata

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Life in print media

Pratim Ranjan Bose

Deputy Editor & Chief of BureauBusiness Line, Kolkata


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Part I

News Media in doldrums

Overview of global and Indian media scenefrom business perspective


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News Media in doltrums

Print Media the grand old man of media.Storehouse of journalistic abilities. Butnow in crisis.

TV Media In the late middle ages. Butsuffering from early ageing.

Web The new kid on the block. Holds promise. Future uncertain.


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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 ofinterest to pay for high cost content and fall inadvertisement revenue are culprits.

Getting lower share of advt compared to TV


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India print media scene1

India has larger number of readers than in theWest.

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.


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Indian print media 2

Quality conscious English media, whowere investing in journalists, worst hit.

Financial media burn cash. Times Group an exception.


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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.


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TV under pressure

Big daddy of spot reporting. Eats more cash than print.

Globally facing competition from webbased citizens journalism. Stalwarts like CNN, BBC under pressure.

Merging with web. Sports channels makehuge money. In India most news channels burn cash.


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Web - only promise

Can emerge as a merged entity of bothprint and TV

Print may cut the entire cost of ink andpaper and delivery cost of paper.

But globally no one no one makes moneyfrom digital ventures.

Same story as e-commerce. Everyone isgoing for it. But no one struck gold.


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Top losers in India

In June NDTV made first profit in last fivequarters. Net margin 2.2 %.

TV-18. Has many products. Huge loss inQ1 (including one time settlements)

HT media Q1. Top line dropped in electionseason. June NPM 5.5%. Print and Radio.

The Hindu made a loss in Q1. English andTamil print media.


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Top gainers in India

Times of India Group. Many products. Burningmoney on TV. No clarity on news operations.PAT up by 30% in 2013-12. NPM 14.64 %

Dainik Bhaskar (Hindi print and Radio) Netincreased by 30% 2013-14. June NPM 16.20 %

Jagran (Hindi print) 11 per cent drop in Net toRs 226 crore in 2013-14. June NPM 13.5


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Analysts view National print

Low growth in advertisement market dueto poor economic growth.

Not enough meat for everyone. Times having control over 50 per cent of

national print market and wide productbasket, elbowing everyone out.

Radio and equity swap deals are profitchurners.


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Analysts view on Hindi

Major growth in readership in vernaculardue to literacy.

Attracting advt for its wide reach in thecow-belt. Advt rates firming up.

Offers low wages

Compromises on print quality. Uses localnewsprint.


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Many doubts

Can news be so profitable? That too in aoverall tight advertisement scenario?

India may have to wait for the real story.


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Part-II

Real threats for media: Journalism ispass.


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Conventions behind mediabusiness -1

Built on social democratic ideals that is tolerantto criticism for greater social benefit.

Govt expected to protect journalists from the

backlash of interest groups and ensure fearlessdissemination 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 theEmergency. Great institutions were created worldwide.


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Conventions behind mediabusiness -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 thegovernment


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The fall of Berlin wall

Weakening of Institutions Democratic West no more takes a high

moral stand against Totalitarian orautocratic governments in the East.

There are strong campaigns to shundemocracy for economic growth.

RoI is sacrosanct.


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End of top Western institutions

From cheque book journalism toembedded journalism America is fastbecoming a journalist -free country.

Top European Institutions getting weakand aligning with power - be it capital orpolitics.

Reuters is now a signboard. BBC lost its teeth. Journalists hounded. The Economist stands out.


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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.


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Part-III

Everything is not over yet


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Some are still holding on

Some old media houses are yet to give into the market pressure.

The Hindu group CEO does not have sayon Editorial policy.

The Hindu Business Line made a slenderprofit in FY14.

Everyone is looking forward to web asgame changer.


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Web a saviour?

In five years many papers, especially pinkpapers will be predominantly web-based.

It will save cost of ink & paper, deliverycosts and, revenue share with trade.

Should get direct access to readersanywhere in the world.

Will offer both print an audio experience tosubscriber. May reduce dependence on advt.


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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 getmore eyeballs.


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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


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Lets hope for the best

Thank you &Best wishes to you all

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