The global news media industry has been challenged by economic and technological disruption, but this new WAN-IFRA study shows that the impact has differed dramatically in different regions of the world. It looks at trends, revenue sources, and the role of independent news media in political and social transition. The research is based on a sweeping new global survey, with in-depth case studies of Egypt, Vietnam, and other regions.

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Financially Viable Media
In Emerging and Developing Markets
World Association of Newspapers and News Publishers
(WAN-IFRA)

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About WAN-IFRA
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:
18,000 publications 15,000 online sites
3,000 companies in more than 120 countries.

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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 ways to
promote independence?

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WAN-IFRA research finds:
Censorship and violencestill 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): Received no external
“We Need Business and Media Skills, but They’re Least
Supported”
57% financial or non-financial
support
1% Loans or credit
57% None
Received non-financial
5% Other
16% support such as training,
strategic advice and similar
8% Govt. financed by external sources.
Financial support for
13% implementation of media
development projects.
8% Government/state aid
13% Financial
5% Other
16% Non-financial Received loans or credits
1% provided by media
development organizations

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FINANCIALLY SUSTAINABLE
MARKET
PROFIT
DRIVEN
DRIVEN
FREE MEDIA
NOT FREE & INDEPENDENT FREE & INDEPENDENT
POLITICALLY
ALIGNED IDEALS
DRIVEN
GRANT
DONOR
DEPENDENT
NOT FINANCIALLY SUSTAINABLE

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Donors should adopt a comprehensive
approach to media development…
… supporting both editorial quality and financial
sustainability.

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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 & Europe
Overall growth in Africa, Asia and Latin America
366,205
323,414
Africa, Asia & Latin America
161,745
147,123
US & Europe
Circulation
of Dailies

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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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Georgia Country Snapshot
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%

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Georgia’s Advertising Market: 80% goes to television marketers
“TV Takes All” Only1% goes to newspapers
Share of Advertising by Medium in Georgia compared to the rest of the World
Share in % Georgia 2008 Share in % Globally 2008
5,1% Newspapers 25% Newspapers
4,6% Magazines 12% Magazines
0,2% Internet 10% Internet
5,9% Outdoor 7% Outdoor
6,7% Radio 8% Radio
77,6% TV 37% TV

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Political Control through Advertising Spending:
The Ruling Party is the
“Best Political Customer”
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

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Case study:
EGYPT

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Egypt Country Snapshot
Data Type 2010 (Estimate)
Population 80.4 million
Literacy rate 71.40%
Per capita GDP US $6,200
Urban/rural population 43%/57%
Circulation of Al-Ahram
1 million
(largest newspaper)
Land line telephone connections 10 million
Cell phone penetration 82.19 million
Internet penetration 20% (broadband: 1 million)

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Al Youm El Sabe’s (The Seventh • 36 million page views
Day): Egypt’s Leading Website • 3 million unique visitors per month

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Three Critical Obstacles
to Egyptian News Industry
Legal restrictions and regulations inhibit
1. the launch of new newspaper or local
broadcast outlets
Legal, economic, and professional
2. obstacle courses prevent journalists
from practicing journalism.
Digital media address gaps through
3. satellite television and social media,
but have faced official reprisals.

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Online Media and Today’s Political Culture
February 2011: NY Times estimated: Twitter gained popularity in the 2010
Over 5 million elections in part because
• Facebook was subjected to
Egyptians on Facebook government monitoring and
Highest number in the Middle East interference.

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Case study:
GUATEMALA

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Guatemala Country Snapshot
Data Type 2010 (Estimate)
Population 13.8 million
Literacy rate 74%
Per capita GDP US $5,200
Urban/rural population 40/60%
Mobile phone penetration 17 million
Internet penetration 15%

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Guatemala’s Traditional Dailies:
Circulation and Ad Rates
(July 2010)
18,000 daily 280,000 daily 27,000 daily
Page rate: $400 Page rate: $3,750 Page rate: $1200
60,000 daily 146,605 daily
Page rate: $1,200 Page rate: $3,750

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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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Many international organizations have contributed to the
improvement of the Guatemalan media.
Swedish International Norwegian Agency United Nations
United Nations Children’s Fund
Development Cooperation For Development Cooperation
Educational,
Agency
Scientific and
Cultural Organization
Human Institute Ford Foundation Media Development
For Development Cooperation Loan Fund
Danish International
Development Agency
Soros Foundation Spanish Cooperation United States Agency For
Agency International Development

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Hybrids: La Voz del Migrante:
• Launched in 2007 by La Hora
New Media • Full-color weekly tabloid
Initiatives Reach • Also published online
New Audiences
NoticiasDeMiGente.com:
• Created by Knight International
Journalism Fellow Maria Emilia Martin
• Linked radio stations via web platform
• Expanded programming in rural
communities
Carretera 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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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
Data Type 2010 (Estimate)
Population 22.06 million
Literacy rate 47.8%
Per capita GDP US $1,000
Urban/rural population 37%/63%
Portuguese 6.5% (official; spoken
Official language by 27% of population as a second
language)
Internet penetration 615,000*

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Household Radio and TV Penetration
•45.5 percent of the families had a radio
• 6.3 percent had a television set
(Government website Observatorio, 2003)
6,3% TV Owners 45,5% Radio Owners

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Print Media:
An Elite Medium
Mozambique’s print media
is the purview of an elite
minority as a result of the
country’s high rate of
illiteracy (over half)

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Mozambican Newspapers:
Top Weeklies
• Currently 10 to 15 newssheets
• Email and “fax-papers” have 400 influential subscribers
Newspapers Weekly Circulation
15,000 13,000 5,000
12,000 20,000

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Mozambique’s challenge:
How can the press to attract advertising revenues under
current economic conditions?

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Organizations Supporting
Mozambique Media Development
Media Support
National Union of Journalists: focuses on
legal and labor rights of its members.
Media Institute of Southern Africa: promotes and defends
freedom of expression.
Donor Support
Southern African Media Development Fund: (SAMDEF)
contributes to the development of the press and launched
daily O Pais.

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Case study:
VIETNAM

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Vietnam Country Snapshot
Data Type 2010 (Estimate)
Population 88 million
Literacy rate 97%
Per capita GDP $1,156
Urban/rural population 26%/74%
Cell phone penetration 98 million
Internet penetration 29%

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Vietnam’s newspaper sector is fully state-owned,
with a two-tiered system:
Most newspapers act as propaganda
1. machine for the state and in return,
receive heavy subsidies.
A smaller group of elite newspapers are
2. granted financial independence to
reduce budgetary burden.

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Vietnam Newspaper Circulation:
Top Dailies
400,000 400,000 380,000
250,000 180,000

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Vietnam's Advertising Sector (2009)
$700
• Estimated at US $736 million
$601.0
$600
$500
$400
$300
Vietnam's Advertising
$200 Sector (2009)
$83.0
$100 $49.0
$2.0 $15.0
$0
Newspapers Television Magazines Radio Online
Advertising

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The Vietnamese
government wants to
maintain 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