All of us have seen our parents sipping their early morning tea with a newspaper in their hands or waiting in the dentist’s office and going through the magazines to pass our time. The world has moved to digital so quickly and seamlessly that it is rare to see someone holding a newspaper. The smartphone is the ultimate tool for all things.
One smartphone is all you need to access all of the world’s power, including banking and food delivery. You can also stream live events from around the globe. Many experiences have become redundant due to the internet, including reading magazines or newspapers.
Although printing was invented in the 1300s and is still used today, the origins of printing can be traced back to cavemen who felt the need for art and storytelling. Partho Dasgupta, Ex-CEO of BARC says, “We have come a long way from there but in the past decade, there has been a monumental shift in technology and consumer preference which has led us to question the existence of print media and its bleak future.”
Partho Dasgupta, Ex-CEO of BARC India and Presently Managing Partner, Thoth Advisors shares, “I believe that this downtrend is going to continue and in time it is going to be very difficult for the newspapers to sustain. With the advent of social media and information being so readily available, it is difficult to imagine our current or coming generations picking up a newspaper or a magazine for their daily dose of news.”
The popularity of print media began in the late 1900s, primarily due to two factors: the low cost of printing and rising literacy rates. Although the traditional advertiser-revenue model for print media was disruptive back then, it appears to be in decline now that more advertisers prefer online advertising over print. Private and government advertisements make up the largest portion of newspaper revenue. Newspapers sell at 1 to 5 INR per advertisement.
INR. “With a shift in the needs of advertisers and the general public, the current model and the industry seems to be in dire straits,” says Partho Dasgupta, Ex-CEO of BARC. The reader/viewer does NOT want to pay anything for what they are seeing, be it in print, television, or digital media. Publishers, broadcasters, as well as internet companies, are heavily dependent upon advertisers to cover their costs and make a profit. Broadcasters then have no choice but publish content that favors advertisers.
Even the shift to online media has not been without its problems. Digital advertising is heavily dependent on platforms like Facebook or Google, which has lowered returns for media houses. While Google has shared revenue in some countries, there is no global policy. While the Indian government is currently considering changes to the IT laws regarding revenue sharing, nothing concrete has been implemented.
“Business model in the print industry has remained stagnant for the past decades and that has led to objectivity of reporting and broadcasting getting lost. Industry as a whole should seriously consider models that aren’t dependent on advertisers. The faith in print needs to come back for it to survive the ever changing market.” Shares Partho Dasgupta BARC ‘s Ex CEO.
The moment is critical as most businesses are changing their business models. Print media, once a mighty giant, can be seen now as an extension to digital media. It must either make changes or retire slowly and pass the throne onto the new digital age.
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