Wan ifra emerging markets final pp

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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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Literacy rate 71.40%



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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Literacy rate 74%


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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Literacy rate 47.8%



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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Population 88 million

Literacy rate 97%

Per capita GDP $1,156


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

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Wan ifra emerging markets final pp