The Future of Newspapers in Colombia

One of the biggest issues that suppliers of news content face today is that the market for news around the world is flat or declining. What’s the outlook for Colombian newspapers?

This is a question that remains unanswered. Many believe that the recipe for their success lies in the jump to smarter digital strategies that help print news outlets return to those glorious days when advertisers ran in droves to grab the best ad spaces regardless of the humongous prices attached to them.

However, it is no secret that the way readers consume content has shifted and so has the way brands approach advertising. Giants like Facebook and Google have long acknowledged this new reality and have made it very clear that they won't leave the table without claiming a slice of the big advertising pie that lies in front.

Those who have followed the evolution of the newspapers industry are no strange to this graph. It shows the sustained advertising revenue growth of newspapers between 1959 and 2001 and then the sudden drop that occurred between 2002 and 2012.

Back in 2013, such dramatic drop raised serious concerns and many individuals in the media industry were left in shock. Several US newspapers, facing the upcoming cash deficit, opted for the easiest way out: massive layoffs in hopes to weather a storm that, back in 2008, seemed to be temporary. And we all know that wasn't the case.

6 years later, the shift continues to shake the industry. Only a couple of months ago, one of the most influential newspapers in the politics sphere of the US, The Washington Post, was sold do amazon.com founder Jeffrey P. Bezos, for the laughable amount of 250 million dollars, amount that did not only allowed the internet mogul to take home the main operation, but also all the other business operated by The Washington Post Co.

On a similar note, the mighty New York Times saw the need to let go one of their most coveted properties, The Boston Globe, bought in 1993 for $1.1 billion, in a humble $70 million sale, «after two decades in which it struggled to stem the decline in circulation and revenue», as The New York Times itself stated.

The situation may have reached a critical point.

The Colombian newspapers landscape

2013 was a very active year for local news publications: the arrival of news aggregator Pulzo.com, the changes in the editorial direction of online news site KienyKe.com whose decision to also bet on lighter content moved the traffic needle in the right direction, and the introduction of new advertising formats by ElEspectador.com in the shape of content marketing are only a few examples to highlight.

However, the pace at which innovation is taking place remains dangerously slow. The changing global news landscape demands innovation to be introduced more rapidly, otherwise the future of many local news outlets will be no different of that of our neighbors up north.

Back in September we witnessed the closing of the print edition of the long standing newspaper El Espacio, one of the first tabloids to ever exist in Colombia. Also, a lot of commentary is going on regarding the upcoming sale of one of the most traditional an influential newspapers in Colombia.

It is time to disrupt

The time has come to bring up the issue, it's not too late. The time has come to generate new ideas for an industry that employs thousands of people and faces the challenge of bringing back to life a business model that advertisers seem to be growing less fond of as time passes by. Sadly, it is necessary to admit that many of the current players will probably succumb, stuck in the old ways of selling advertising and presenting content in formats that no longer satisfy the changing needs of their readers and the demands of more sophisticated media buyers.

Although 2013 saw several newspapers exploring new revenue channels, moved mainly by the advertisers' shrinking interest in paying for costly advertising that is hard to measure and in some cases, not very effective, we are still far from finding a model that fits the needs of a reader who demands more from their news content providers.

Plummeting revenue figures

Stating that 2014 may not be the year of a positive upturn in terms of advertising revenue for print news companies is not a wild guess, it is simply a conclusion easily drawn by looking at the state of an industry that seems to be attached for life to traditional monetizing models that new players are not afraid to take into new directions.

In order to move forward, newspapers need to embrace change or face the fate of countless news outlets in the US that saw the disruption of their industry by the hands of newcomers willing to take away audiences left behind by companies too hesitant to invest in innovation. More tan once we have run into names such as ‘The Huffington Post’, winner of several Pulitzer awards, ‘De Correspondent’, a dutch news publication that went from concept to reality thanks to a crowdfunding campaing or ‘Buzzfeed’, a news site Not Just LOLCats and Top Ten Lists, despite what many believe.

The innovation dilemma

Adversity to risk is precisely where the root of the problem lies. The introduction of new formats, products and features is done in a very conservative way. There is evident fear to risk, to experiment and fail. We, the readers, are still waiting to see who is going to be the first to face disruption head on. Not one has dared to introduce subscription formats that grant access to exclusive content and, with a few exceptions, not one has gone beyond in order to build completely new mobile experiences (inside.com should be an example to follow in this regard), instead they prefer to stick to the safest choice, a responsive version that tries to awkwardly shrink all the elements of the web experience into a smaller screen leaving in the table the one opportunity to serve the specific needs of a growing mobile user base.

Putting all pessimism aside, the goal of this article is to offer a broader perspective on the state of the newspaper industry and try to point out ways in which we can lead the change taking some inspiration from the events happening in more developed countries where disruption is already taking place. The shift in the way readers consume news content is here, it is undeniable and it's been happening before our eyes: It's time to step up!

The future of Colombian newspapers is at stake and it is time to make decisions that help them move forward. Industry leaders are well aware of this, and the topic has been widely discussed, however, there seems to be an evident lack of action.

Less than ten years ago, 70% of the revenue income for most local newspapers came in the form of advertising pesos, only 30% of the sale of the actual paper (subscriptions). Today the numbers show a much different landscape with a 50-50 share that shows no real increase in print subscriptions. You do the math.

Is there real capacity to innovate?

It is impossible to foresee which newspapers will make it through the change, it will depend on how each one embraces innovation as the key factor for change. Let's not forget that most newspapers in Colombia, and for that matter, in the entire region, come from a long family heritage and are run as traditional businesses in which new methodologies of agile product development and lean execution are quite rare.

Some newspapers are keen on implementing new strategies tough. However, not all of them will make it to the other side simply because they refuse to accept that the business model needs to adapt or “there may be no newspapers in 10 years' time because of the competition from the internet” as media tycoon Rupert Murdoch, himself owner of global media holding company News Corporation, predicted back in 2012.

A promising landscape

May 2014 be the year of disruption and innovation for colombian newspapers. The year of massive awakening and adoption of the new content consumption trends that have been shaping the news industry in foreign markets for a while now.

There is clearly no easy answer for how to save the newspapers and manage to finance good journalism at the same time. Probably charging for online access is not a viable model, but the only way to determine that is by trying.

Of course, even if a paper decided to charge, readers could just head to another news source that decided to go with an advertising-based revenue model. Yet again, the answers will only come up when someone steps up to the plate and dares to walk out of a soon-to-be-over comfort zone. Who will be the one?

Only time will tell.

@FabioRodriguez

Ideas?

Feel free to leave your comments in English or Spanish. Comparta sus comentarios en inglés o español.

(Photo: Tablet computer, newspaper, coffee cup and cell phone on desk, Getty Images.)

"The Future of Newspapers in Colombia" is an adaptation of an article originally written in Spanish for Young Marketing.

Loren Moss

Publisher, Analyst, Advisor with deep experience in Global Business Services Delivery

9y

I find this very interesting, Fabio. Next week, a digital online publication, Finance Colombia launches, covering the Colombia's business sector in English. Colombia has a robust press, that experiences freedom compared to its neighbors to the East and to the South. How sophisticated do you think that Colombian advertisers are when it comes to online advertising?

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