Of unique strategies, innovations & paywalls

INMA South Asia Media Festival – Making readers pay

137
MK Venu, founding editor, The Wire, Sridhar Aranala, head of Sales and Distribution, The Hindu, Sanjeev Bhargava, brand director, Times of India, and Basant Rathore, senior vice president - Strategy and Business Development, Dainik Jagran. Photo INMA
MK Venu, founding editor, The Wire, Sridhar Aranala, head of Sales and Distribution, The Hindu, Sanjeev Bhargava, brand director, Times of India, and Basant Rathore, senior vice president - Strategy and Business Development, Dainik Jagran. Photo INMA

Newspaper prices in India do not pay even for the newsprint and printing – the direct variable cost of the newspaper. Consequently, newspapers rely on advertisers to cover these expenses. The situation for publications worsened with the rise in digital news media. Digital is said to have resulted in shorter attention spans of readers and loss of interest in long-form content – or even any content that is not real-time or interactive. Apathy towards commercial communication often accompanies free access to digital news media.

Digital media targets every individual preference, thanks to the algorithms that service readers based on their interests. The change in content consumption patterns, the measurability of digital users and the ability to target a specific audience offer digital advertisers the ability to make an impact with cost-efficiency.

The newspapers are struggling to maintain ad revenues, let alone increase their circulations in the face of these challenges. The ‘High time readers pay for content in print media’ session at the INMA India conference included Sanjeev Bhargava, brand director, Times of India, Sridhar Aranala, head of Sales and Distribution, The Hindu, and Basant Rathore, senior vice president, Strategy and Business Development, Dainik Jagran. Moderated by MK Venu, founding editor, The Wire, the discussion attempted to understand how legacy newspapers can monetize their content.

Basant Rathore, senior vice president - Strategy and Business Development, Dainik Jagran. Photo INMA
Basant Rathore, senior vice president – Strategy and Business Development, Dainik Jagran. Photo INMA

Paywalls

The discussion began by acknowledging that newspapers have been sold almost free in India for far too long. This practice has made it difficult to make the reader pay for content. The papers rely on ads to cover the cost, a model that is failing against digital disruption. According to Aranala, the singular focus on ads instead of readers has led the industry to believe that readers are not willing to pay for content.

He suggested that creating quality content and making it available across multiple platforms might encourage readers to pay for it. Shifting content behind a paywall might also help news media to sustain their business. Being present in both formats print, and digital could be of help. Readers are still consuming content; it is just the medium that has changed. Nevertheless, Aranala is not overly worried.

Sridhar Aranala, head of Sales and Distribution, The Hindu. Photo IMMA
Sridhar Aranala, head of Sales and Distribution, The Hindu. Photo IMMA

Digital media has become the primary purveyor of news. Readers no longer wait for a newspaper to deliver breaking news. Bhargava said that papers need to provide analysis of that news. He asserted that consumers would then pay for content. He agreed with Aranala that monetizing content and using paywalls will push readers to pay for content. Consumers are willing to pay for service; they are already paying for entertainment sources such as Netflix.

Bhaskar Das, conference curator and group president, Republic Media Network, interrupted the discussion and referred to Bharat Anand’s book, The Content Trap: A Strategist’s Guide to Digital Change. Das said that The New York Times created a user network on its digital platforms where readers could access NY Times’ content for free while its opinion pieces were limited to subscribers – a money-losing model.

Bhaskar Das, conference curator and group president, Republic Media Network.
Bhaskar Das, conference curator and group president, Republic Media Network.

However, after two years, the newspaper changed its strategy to provide its online content at a flat subscription rate and free for its print subscribers. The new approach resulted in over US$ 100 million in subscription revenue in the first year, according to an article on Gowithfloat.com. The NY Times also created an app, where readers could help other readers in the case of calamities, hence, creating a community network.

Das questioned the panelists, asking why Indian newspapers don’t try something similar. Rathore responded by saying that monetization of content is not a single step, but a series of steps. The revenue coming from digital to the content creators is not enough to cover the price of print, while the cash burn on content is enormous. Meanwhile, the cover price of vernacular dailies is better than their English counterparts because of the differences in markets and competition – forces that are beyond the control of a news organization. Pricing decisions are complicated.

The discussion shifted to the best strategies for paywall implementation. Unlike other industries, newspapers are not aware of their consumers, their consumption patterns and preferences. Newspapers can’t access the kind of analytics that social media and digital platforms have. Analytics requires investment in technology and resources. Moreover, Indian culture is diverse, and the market is fragmented. The panelists agreed that newspapers do not have the data analytics of their readers. However, through outreach programs, newspapers attempt to understand their readers. These could help them to create reader experiences where they offer their readers contextual content.

Sanjeev Bhargava, brand director, Times of India. Photo INMA
Sanjeev Bhargava, brand director, Times of India. Photo INMA

In conclusion, the panelists agreed that print and digital are very different – entities needing unique approaches. Print might work with ads, and content monetization could do the trick for digital; newspapers need to figure out content monetization in whatever form they can grow it.

News organizations may not be able to change consumer preferences, but they might, however, recognize and leverage them for mutual benefit. The panelists said that while print cannot compete with digital, it still has a potentially sustainable place in the market – one that needs to be leveraged by unique strategies and innovation.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Indian Printer and Publisher’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here