developing financially viable media
DESCRIPTION
The global news media industry has been challenged by economic and technological disruption, but this new WAN-IFRA study shows that the impact has differed dramatically in different regions of the world. It looks at trends, revenue sources, and the role of independent news media in political and social transition. The research is based on a sweeping new global survey, with in-depth case studies of Egypt, Vietnam, and other regions.TRANSCRIPT
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World Association of Newspapers and News Publishers (WAN-IFRA)
Financially Viable MediaIn Emerging and Developing Markets
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The global organisation of the world's newspapers and news publishers.
Its core mission is to defend and promote
press freedom, quality journalism and editorial integrity and the development of prosperous businesses.
WAN-IFRA represents over:
About WAN-IFRA
publications18,000 online sites15,000
in more than 120
countries.companies3,000
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It’s clear that media systems need to be independent of political and economic forces to serve the interests of democracy...
…but what are the best waysto promote independence?
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WAN-IFRA research finds:
Censorship and violence still silence journalists in many places --
but other countries are enjoying unprecedented freedom.
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The WAN-IFRA survey also shows that
media managers and editors in developing countries are limited by the lack of
basic business management skills.
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Key finding from the WAN-IFRA research:
Leading editorial managers have greatly benefited from media development assistance…
… but economic pressures make it hard to sustain their hard-won advances.
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The majority of newspapers around the world see the economic climate and market conditions as the major challenges…
… to their editorial independence and business development
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Digital media is sweeping the globe…
… but it carries no guarantee of significant revenues.
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Despite the global frenzy, revenues from digital sources contribute less than 10 percent to total revenue.
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News Managers to Donors (Survey Result): “We Need Business and Media Skills, but They’re Least Supported”
57%Received no external financial or non-financial support
Received non-financial support such as training, strategic advice and similar financed by external sources.
Financial support for implementation of media development projects.
Government/state aid
Other
Received loans or credits provided by media development organizations
57% None
16% Non-financial
13% Financial
8% Govt.
5% Other
1% Loans or credit
16%
13%
8%
5%
1%
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FINANCIALLY SUSTAINABLE
NOT FINANCIALLY SUSTAINABLE
FREE & INDEPENDENTNOT FREE & INDEPENDENT
PROFIT DRIVEN
POLITICALLY ALIGNED
GRANTDONOR DEPENDENT
IDEALS DRIVEN
MARKET DRIVENFREE MEDIA
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Donors should adopt a comprehensive approach to media development…
… supporting both editorial quality and financialsustainability.
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WAN-IFRA Survey based on:
227 responses from 66 countries
between July and December 2010.
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Global Daily Newspaper Circulation Trends:
Long-term slowdown (stagnating or in decline) in US & EuropeOverall growth in Africa, Asia and Latin America
Circulation of Dailies
323,414
366,205
147,123161,745
Africa, Asia & Latin America
US & Europe
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Circulation of dailies (total average circulation in 000s)
Continents 2005 2009 5 year change
Africa 9,202 11,944 +29.80%
North America 67,015 59,895 -10.62%
Latin America 13,441 14,133 +5.15%
Asia 300,771 340,128 +13.09%
Australia & Oc. 3,495 3,300 -5.58%
Europe 94,730 87,228 -7.92%
Total 488,654 516,628 +5.72%
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Case study:
GEORGIA
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Data Type 2010 (Estimate)
Population 4.4 million
Literacy rate 100%
Per capita GDP US $4,400
Urban/rural population 53%/47%
Cell phone penetration 2.8 million
Internet penetration 28.5%
Georgia Country Snapshot
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Georgia’s Advertising Market:
“TV Takes All” Share of Advertising by Medium in Georgia compared to the rest of the World
80% goes to television marketers
Only 1% goes to newspapers
5,1% Newspapers 4,6% Magazines0,2% Internet 5,9% Outdoor 6,7% Radio 77,6% TV
25% Newspapers 12%
Magazines10% Internet 7 % Outdoor 8 % Radio 37% TV
Share in % Globally 2008Share in % Georgia 2008
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In 2010, the Georgian ruling party spent:
GEL 10.13 million
(approx. US $5.75 million) on TV ads
and only GEL 493,800
(approx. US $280,000) on • Print media and ads• Billboards
Political Control through Advertising Spending:
The Ruling Party is the “Best Political Customer”
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Case study:
EGYPT
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Data Type 2010 (Estimate)
Population 80.4 million
Literacy rate 71.40%
Per capita GDP US $6,200
Urban/rural population 43%/57%
Circulation of Al-Ahram (largest newspaper)
1 million
Land line telephone connections 10 million
Cell phone penetration 82.19 million
Internet penetration 20% (broadband: 1 million)
Egypt Country Snapshot
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Al Youm El Sabe’s (The Seventh Day): Egypt’s Leading Website
• 36 million page views• 3 million unique visitors per month
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Three Critical Obstacles to Egyptian News Industry
Legal restrictions and regulations inhibit the launch of new newspaper or local
broadcast outlets
Legal, economic, and professional obstacle courses prevent journalists
from practicing journalism.
Digital media address gaps through satellite television and social media,
but have faced official reprisals.
1.
2.
3.
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Online Media and Today’s Political Culture
February 2011: NY Times estimated:
Over 5 million Egyptians on Facebook Highest number in the Middle East
Twitter gained popularity in the 2010 elections in part because• Facebook was subjected to
government monitoring and interference.
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Case study:
GUATEMALA
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Data Type 2010 (Estimate)
Population 13.8 million
Literacy rate 74%
Per capita GDP US $5,200
Urban/rural population 40/60%
Mobile phone penetration 17 million
Internet penetration 15%
Guatemala Country Snapshot
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18,000 daily
Page rate: $400
280,000 daily
Page rate: $3,750
27,000 daily
Page rate: $1200
60,000 daily
Page rate: $1,200
146,605 daily
Page rate: $3,750
Guatemala’s Traditional Dailies:
Circulation and Ad Rates(July 2010)
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Guatemala’s Economic and Intellectual Elite Read El Periodico
• created with financial support of the Media Development Loan Fund• 40% of capital was provided by 135 private individuals investing US $10,000
each.• 60% of capital was provided by the newspaper workers
Print Edition Online Edition
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Swedish InternationalDevelopment Cooperation
Agency
United Nations Educational, Scientific and
Cultural Organization
Norwegian AgencyFor Development Cooperation
United States Agency For International Development
Human InstituteFor Development
Cooperation
Ford Foundation Media DevelopmentLoan Fund
Danish InternationalDevelopment Agency
Spanish CooperationAgency
United NationsChildren’s Fund
Many international organizations have contributed to the improvement of the Guatemalan media.
Soros Foundation
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Hybrids: New Media Initiatives Reach New Audiences
La Voz del Migrante:• Launched in 2007 by La Hora• Full-color weekly tabloid • Also published online
NoticiasDeMiGente.com: • Created by Knight International
Journalism Fellow Maria Emilia Martin
• Linked radio stations via web platform• Expanded programming in rural
communitiesCarretera News:
• Local print and online newspaper• Up to 16,000 printed issues
distributed in suburban areas
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Case study:
MOZAMBIQUE
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Data Type 2010 (Estimate)
Population 22.06 million
Literacy rate 47.8%
Per capita GDP US $1,000
Urban/rural population 37%/63%
Official languagePortuguese 6.5% (official; spoken by 27% of population as a second language)
Internet penetration 615,000*
MOZAMBIQUE:• One of the most impoverished countries in the world
(Ranked 172 out of 182 countries on the UNDP Index)• Media market is in an early phase of development
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• 45.5 percent of the families had a radio • 6.3 percent had a television set
(Government website Observatorio, 2003)
Household Radio and TV Penetration
6,3% TV Owners 45,5% Radio Owners
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Mozambique’s print media is the purview of an elite minority as a result of the country’s high rate of illiteracy (over half)
Print Media:
An Elite Medium
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15,000
Mozambican Newspapers: Top Weeklies
Newspapers Weekly Circulation
• Currently 10 to 15 newssheets• Email and “fax-papers” have 400 influential subscribers
13,000 5,000
20,00012,000
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Mozambique’s challenge:
How can the press to attract advertising revenues under current economic conditions?
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National Union of Journalists: focuses onlegal and labor rights of its members.
Media Institute of Southern Africa: promotes and defends freedom of expression.
Southern African Media Development Fund: (SAMDEF) contributes to the development of the press and launched daily O Pais.
Media Support
Donor Support
Organizations Supporting Mozambique Media Development
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Case study:
VIETNAM
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Data Type 2010 (Estimate)
Population 88 million
Literacy rate 97%
Per capita GDP $1,156
Urban/rural population 26%/74%
Cell phone penetration 98 million
Internet penetration 29%
Vietnam Country Snapshot
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Vietnam’s newspaper sector is fully state-owned,with a two-tiered system:
A smaller group of elite newspapers are granted financial independence to
reduce budgetary burden.2.
Most newspapers act as propaganda machine for the state and in return,
receive heavy subsidies.1.
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400,000
Vietnam Newspaper Circulation: Top Dailies
400,000 380,000
180,000250,000
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Newspapers Television Magazines Radio Online Advertising
$0
$100
$200
$300
$400
$500
$600
$700
$601.0
$83.0$49.0
$2.0 $15.0
Vietnam's Advertising Sector (2009)
Vietnam's Advertising Sector (2009)
• Estimated at US $736 million
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The Vietnamese government wants tomaintain editorial control but wean newspapers from state subsidies…
…Can this equation work?
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To learn more:
Financially Viable Media in Emerging and Developing Markets
A 2011 WAN-IFRA Report
The World Association of Newspapers and News Publishers (WAN-IFRA) http://www.wan-ifra.org