Value addition & economic transformation of media value chain
VALUE addition in media content production and marketing is very critical if media organisations are to remain viable in the ever changing information economy and news media landscape in particular. This can be achieved through the application of value addition practices, without even disregarding journalistic principles!
Zimbabwe’s news media landscape has been undergoing deep changes in recent years. While new opportunities have been evolving, a parallel and devastating wave of trials has been threatening the existence of the mainstream media. The most significant trials were the economic shocks which resulted in some news organisations downing tools while others either retrenched or downscaled to cut costs. In terms of market performance, several news media have been experiencing an unrelenting decline in circulation and readership (newspapers) as well as listenership (radio) and viewership (television).
Having enjoyed a seemingly steady growth in the 1980s and 1990s, the country’s mainstream media started experiencing numerous economic challenges in the new millennium (2000s) due to several socio-economic, political and technological changes. Zimbabwe’s economic crisis, especially the 2008 economic catastrophe accentuated the downward spiral of many forms of media.
The economic foundations of most media organisations were shaken with a debilitating economy. For example, SW Radio Africa stopped broadcasting on 10 August 2014 after 13 years of operations. Similarly, Alpha Media Holding’s (AMH) Southern Eye newspaper closed its operations effective 1 April 2015 while the Zimbabwe Mail stopped publishing on 18 March 2015 due to financial constraints. Moreover, evidence on the ground has also shown that several commercial radio stations are still economically limping since registration as the economy and competition have not spared them from attacks.
While technological changes through globalisation and new Information and Communication Technologies (ICTs) have brought some form of relief by unlocking new economic opportunities, they have somehow weakened the conventional media’s market positions. For example, the cultural impact of digital technology has seen a shift in readership, listenership and viewership patterns of younger readers who are now mostly attracted to the Internet as a source of news and information. Through digital technology and the Internet, various online media are offering audiences instant access to news and information, often associated with alternative media such as audio and video. And moreso such news can be accessed for free!
Furthermore, the Internet and other digital technologies have increased the consumer’s bargaining power, thereby loosening media grip on information and news. Yet, traditionally media monopoly of news and information has been the main strategy for profit making.
Moreso, the registration of new players in the form of both offline and online-only news media as well as other content markers continue to impact negatively on the long-serving media groups as they are now facing stiff competition from new competitors.
Generally, the impact of socio-political, economic and technological challenges that have occurred in the past years have radically altered the commercial positions of many media institutions.
Even in the wake of digitisation, most mainstream media including newspapers, radio stations and the country’s sole television station (ZBC TV) are still struggling as they have not yet fully embraced new technologies. It is truly a revolutionary phase and the mainstream media have to quickly adapt.
While digitisation can offer new ways through which the media sector can increase the economic value of their products and services, there is still great concern over the future of mainstream media in the digital era. One major question that many researchers are still struggling to find answers for is: Will digitisation eventually lead to the demise of traditional media, particularly newspapers?
Therefore, in order to achieve economic resilience and sustainability, there is great need for media organisations to revisit their content production and marketing strategies. Although most media organisations have tried to do so through embracing new technologies as well as changing their corporate strategies, there is still need to enhance their content creation processes. Value addition practices remains one of the key strategies through which media houses can transform their businesses.
Media practitioners should realise that evidence of declining readership and circulation, viewership and listenership as well as advertising income signals the need for robust economic transformation of their content value chains. Indications are that most media organisations are still trying to establish working business models for their operations and the majority of such efforts are still on the experimental stages. Publishers and broadcasters are trying out various new models, yet none has so far proved economically viable.
However, there is impending risk that the market will enter a phase of decline, created by a lack of profitability if existing media business models fail to overcome future uncertainties. All this means that the approaches employed by news organisations and other content producers need serious appraisal. Media organisations need to rethink their identity; business models; organisational structures; product range; target audience and more importantly their roles in society.
Thus, the development of sustainable value addition approaches along the various stages of the content value chain present the media with a cost-effective conduit towards sustainable media growth and market viability. ◆ This article is the introductory part (Part 1) of Share Hope Research Consultancy’s (SHRC) Media Content Value Chain Research Study, which is currently underway. For more information about this project or SHRC please contact us using the following details: - Phone: +263-773000870 /716542436. Email: consultancysharehope@gmail.com/consultancy@sharehopefoundationtrust.org