WAN-IFRA: Financially Viable Media

Financially Viable MediaIn Emerging and Developing Markets

A report to the The World Association of Newspapers and News Publishers

(WAN-IFRA)

by Anne Nelson

The World Association of Newspapers and News Publishers (WAN-IFRA) is a non-profit, non-governmental organization that has worked as a partner with international aid agencies, foundations, and fellow NGOs to promote the development of quality news media around the world.

WAN-IFRA’s main objectives are to:

• Defend and promote press freedom and the economic independence of newspapers• Support the development of newspaper publishing around the world• Promote co-operation between its member organizations, worldwide

WAN-IFRA is made up of 76 national newspaper associations, 12 news agencies, 10 regional press organizations and individual newspaper executives in 100 countries.

The analysis presented deals with the economic aspects of media systems while considering their function within a democratic system of governance.

Several key findings emerged from the WAN-IFRA researchCensorship and violence against journalists still occur in many places, while other countries are operating with unprecedented freedom

Several key findings emerged from the WAN-IFRA researchMedia managers and editors in developing countries are unable to take full advantage of their new freedoms because they lack basic business management skills.

Several key findings emerged from the WAN-IFRA research

While digital media is sweeping the globe, it is also deteriorating the business model of newspapers in North America

Financially Sustainable

Not Free & Independent Free & Independent

Not Financially Sustainable

PROFIT DRIVEN

POLITICALLYALIGNED

GRANT/DONOR DEPENDENT

MARKETDRIVENFREEMEDIA

IDEALSDRIVEN

PROFIT DRIVEN

GRANT/DONORDEPENDENT

IDEALSDRIVEN

Financially Sustainable

Not Free & Independent Free & Independent

Not Financially Sustainable

Media Development Market ModelForces and Influences

MARKETDRIVENFREEMEDIA

Actual Market Position Desired Market Position

Source: Byrne, 2010

Sample Overview

Country categoryNumber of participants

Number of countries

GDP per capita

Africa 66 21 Above $20,000

North America 131 37 Between $2000 and $20,000

Latin America 30 8 Below $2000

Total 227 66

Sources: World Press Trends 2010, World Association of Newspapers and News Publishers

The international survey included:

• Sample of 227 survey-responses• From 66 countries • Period between July and December 2010.

The survey results have been grouped according to:

• Recognized economic development indicators• The level of country’s GDP per capita

Circulation of dailies (total average circulation in 000s)

Newspapers in developed markets are almost universally stagnating or are in decline.

Daily circulation highlighted trends:

• Overall growth in Africa, Asia, and Latin America • A long-term slowdown in the U.S. and European markets

20052006

20072008

2009

0

50000

100000

150000

200000

250000

300000

350000

400000

US & Europe

Africa, Asia & Latin America

US & Europe

Africa, Asia & Latin America

Circ

ulati

on o

f Dai

lies



2005

2009

0

50000

100000

150000

200000

250000

300000

350000

400000

US & EuropeAfrica, Asia & Latin America

US & EuropeAfrica, Asia & Latin America



Circ

ulati

on o

f Dai

lies

ALTERNATE SLIDE


Continents 2005 2006 2007 2008 2009 5 year change

Africa 9,202 10,003 10,572 11,396 11,944 29.80%

North America 67,015 65,890 64,470 62,021 59,895 -10.62%

Latin America 13,441 13,759 14,543 14,809 14,133 5.15%

Asia 300,771 315,870 333,374 336,645 340,128 13.09%

Australia & Oc. 3,495 3,464 3,439 3,351 3,300 -5.58%

Europe 94,730 95,322 93,640 92,440 87,228 -7.92%

Total 488,654 504,308 520,038 520,662 516,628 5.72%


Facts and Figures




ALTERNATE SLIDE


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%


Facts and Figures




ALTERNATE SLIDE

Business and Media Skills Needed but Least Supported:

57%

16%

13%

8%

5%

No, my company did not receive any such external financial or non-financial aid/support

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

57%

16%

13%

8%

5%1%

1%Loans or credits provided by media development organizations

EGYPT

Data Type 2010 (Estimate)

Population 80.4 million

Literacy rate 71.40%

Per capita GDP US $6,200

Urban/rural population 43%/57%

Official language Arabic

Land line telephone connections 15%

Mobile phone registered connections 82.19 million

Internet penetration 20% (broadband: 1million)

Egypt Country Data

Sources: CIA World Factbook and Egyptian Ministry of Communications

Market growth: Annual compound growth rate of 7 percent over the period of 2009-2013:

Egypt’s Advertising Market Penetration

2009

2013

0 100 200 300 400 500 600 700 800 900 1000

Advertising Market Growth

Advertising Market Growth

$936 Million

$720 Million

• Newspapers : Over 55 percent of total advertising spend in 2009.• Magazines: For approximately 6 percent.

Advertising Market in the Print Media

NewspapersMagazines

0%

10%

20%

30%

40%

50%

60% 55%

6%

Advertising in Print Media

Advertising in Print Media

Al Youm El Sabe’s (The Seventh Day): Egypt’s Leading Website

• 36 million page views• 3 million unique visitors per month

Three Critical Elements of the Egyptian Media

1. Legal restrictions and regulations that inhibit the launch of new newspaper or local broadcast outlets

2. Legal, economic, and professional obstacle courses that prevent journalists from practicing journalism.

3. The way in which new media address gaps through satellite television and social media.

Online Media and Today’s Political Culture

In February 2011, the New York Times (2011) estimated:

• Over 5 million Egyptians are on Facebook

• Highest number in the Middle East

Twitter gained popularity with the 2010 elections in part because:• Facebook was subjected to government

monitoring and interference.

GEORGIA



Literacy rate 100%



Official language Georgian

Internet penetration 28.5%

Country Facts and Figures

Sources: World Bank Development Indicators and other World Bank statistics, UN Population Information Network, Budde Communications Inc.

Georgia has extended periods of political unrest and conflict. The news media often find themselves in the line of fire.

Sharing of Advertising Market in Georgia and the World

77.6

5.1

4.60.25.9

6.7

Share in % Georgia 2008

TVNewspapersMagazinesInternetOutdoorRadio

37

2512

10

78

Share in % Globally 2008

TVNewspapersMagazinesInternetOutdoorRadio

Share of Advertising by Medium in Georgia compared to the rest of the World

• 80% has gone to television marketers• Only 1% has gone to newspapers

Source: WAN-IFRA, 2009

Share of Advertising by Medium in Georgia and the World

MediumShare in %Georgia 2008

Share in %Globally 2008

TV 77.6 37

Newspapers 5.1 25

Magazines 4.6 12

Internet 0.2 10

Outdoor 5.9 7

Radio 6.7 8

Many Georgians believe that independent print media have no ability to compete in the advertising market with the television companies, closely aligned with the ruling party, regulatory authorities, and advertising tycoons.

Facts and Figures

ALTERNATE SLIDE

In 2010, the Georgian ruling party spent:

GEL10.13 million (approx. US $5.75 million) on:• TV ads

GEL493,800 (approx. US $280,000) only on: • Print media and ads• Billboards

Advertising Market:The Ruling Party is the “Best Political Customer”

Many Georgians believe that independent print media have no ability to compete in the advertising market with the television companies that are closely aligned with:

• The ruling party• Regulatory authorities• Advertising tycoons

• The Ministry of Economics only publishes about official tenders in the 24 Saati.• A way the State channels money toward loyal newspapers.

24 Saati [24 Hours] Newspaper: Seen as loyal to the Georgian Ruling Party

Daily Financial Newspaper (Print) www.24saati.ge (Online Newspaper)

The only newspaper audience research to date was funded by:

The Georgian television industry has also received structured assistance:

GUATEMALA



Literacy rate 74%


Urban/rural population 40/60%

Official language Spanish

Internet penetration 15%



Guatemala is a lower-middle income developing country. The print journalism market is constrained by illiteracy.

Media in Transition

# of Issues: 18,000

One page of advertising: $400

# of Issues: 280,000

One page of advertising: $3,750

# of Issues: 27,000


# of Issues: 60,000




Guatemalan Newspapers: Top Dailies

Guatemalan Newspapers circulation, rates (July 2010)

• Prensa Libre has a pool of 1,000 advertisers• Prensa Libre and Nuestro Diario publish approximately 430,000

newspapers daily

Source: Data facilitated by the Secretariat of Social Communication, Guatemalan Government. (August 2010) Prices offered to the government in US dollars.

Guatemalan Newspapers circulation, rates (July 2010)

Daily # issuesPrice per one page of advertising in printed edition, full color

National Gazette 7,600 US $1,000

La Hora 18,000 US $400

Siglo 21 27,000 US $1,200

El Periodico 30,229 US $2,750

Al Dia 60,000 US $1,200

Prensa Libre 146,605 US $3,750

Nuestro Diario 280,000 US $3,750

ALTERNATE SLIDE

Guatemala’s Economic and Intellectual Elite Read: El Periodico

• The paper was created with financial support of the Media Development Loan Fund.• 40% of the capital:

• Provided by 135 private individuals, who invested US $10,000 each.• 60% of the capital:

• Provided by the newspaper workers

Print Newspaper Online Newspaper

International Aid to Guatemalan Media

Swedish InternationalDevelopment Cooperation

Agency

United Nations Educational, Scientific and

Cultural Organization

Norwegian AgencyFor

Development Cooperation

United States AgencyFor

International Development

Human InstituteFor

Development Cooperation

Ford FoundationMedia Development

Loan FundDanish InternationalDevelopment Agency

Spanish CooperationAgency

United NationsChildren’s Fund

These organizations have contributed to the improvement of Guatemalan media prospects.

Soros Foundation

Hybrids: New Media Initiatives

In 2007-2008, La Hora launched “La Voz del Migrante”:

• A weekly tabloid printed in full color• Also published online

NoticiasDeMiGente.com: • Created by Knight International Journalism

Fellow, Maria Emilia Martin• Linked radio stations via a web platform• Expanded programming in rural communities

Carretera News:• Local print and online newspaper• Up to 16,000 printed issues distributed in

suburban areas

MOZAMBIQUE



Literacy rate 47.8%



Official languagePortuguese 6.5% (official; spoken by 27% of population as a second language)

Internet penetration 615,000*



• 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

• 45.5 percent of the families had a radio • 6.3 percent had a television set

45.50%

6.30%

Radio Owners

TV Owners

The government website Observatorio (2003) offers the following figures:

Radio and TV Penetration In Households

Mozambique’s print media must be regarded as the purview of an elite minority as a result of the country’s high rate of illiteracy.

Print Media: An Elite Medium

# of Publications: 15,000

Mozambican Newspapers: Top Weeklies

Newspapers Weekly Circulation

• Currently 10 to 15 newssheets• Email and fax-papers have 400 dedicated subscribers

# of Publications: 13,000 # of Publications: 5,000

# of Publications: 20,000# of Publications: 12,000

One of the main challenges facing the private media sector in Mozambique is the limited ability of the press to attract advertising revenues and remain economically viable.

Challenges in the Advertisement Market

The organization focuses on re-orienting toward the defense of the legal and labor rights of its members.

Member of the MISA Southern Africa network aimed at promoting and defending freedom of expression and speech.

The Southern African Media Development Fund (SAMDEF) has contributed to the development of the press to launch its daily O Pais.

Media Support

Donor Support

Organizations Supporting Mozambique Media Development

VIETNAM


Population 88 million

Literacy rate 96.8%

Per capita GDP $1,156

Urban/rural population Urban: 26% Rural: 74%

Official language Vietnamese

Internet penetration 29%



• 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

Vietnam’s newspaper sector is fully state-owned and exhibits a clearly defined “two tier” system.

1. Acts as a propaganda machine for the state, and in return, news papers receive heavy subsidies.

2. A smaller elite of newspapers are granted financial independence to reduce budgetary burden.


Vietnam Newspapers: Top Dailies

Newspapers Daily Circulation

• Read most regularly by young urbanites:• with secondary education• who earn between US$299 and $699 per month

# of Issues: 400,000 # of Issues: 380,000

# of Issues: 180,000# of Issues: 250,000

Vietnam’s Newspaper Market

Sources: Publisher and interviewee estimates, Google Analytics

Print Daily Circulation

Tuoi Tre (Young People) 400,000

Cong An Thanh Pho Ho Chi Minh (HCMC Police) 400,000

An Ninh The Gioi (World Peace) 380,000

Thanh Nien (Youth) 250,000

Nhan Dan (The People) 180,000

Phu Nu Thanh Pho Ho Chi Minh (HCMC Women) 1,000

Saigon Gai Phon (Saigon Liberation) 80,000

Tien Phong (Vanguard) 70,000

Lao Dong (Labor) 60,000

Nguoi Lao Dong (Laborer) 60,000

ALTERNATE SLIDE

Vietnam Newspapers: Top Dailies

• Vietnam has 178 newspapers• 76 newspapers are national• 102 newspapers are local

Three Critical Elements of the Mozambican Media

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 Sec-tor (2009)

• Estimated at US $736 million

Vietnam Media: Foreign Development Assistance• Vietnamese government fears that significant donor assistance will impact the state’s

ability to control its media.

For More Information:

The World Association of Newspapers and News Publishers (WAN-IFRA)

http://www.wan-ifra.org

Anne Nelson on media:PBS [email protected]: @anelsona

mailto:[email protected]

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WAN-IFRA: Financially Viable Media