Most of my friends who graduated along with me from our J-school will update their curriculum vitae within 3 months saying they have completed around one year in journalism. Some even wanted to change their job in Nov-Dec period, saying the organisation in which they work, is not their dream organisation. But now they are panicked by the R word ; yes the very same culprit -Recession.
"What will happen to us? Forget about hikes, will we be able to retain our job?" one of my friends who works in a city tabloid, said. "This recession bites every one pal," another friend and a would-be cine critic said somedays ago. Even senior colleagues warned us newcomers saying don’t even think of about updating resumes, you will repent soon.
Don't go, recession, job cuts, freeze on recruitment, --OOPs!! Will somebody tell me what does this recession has to do with Indian media?
Well I found no body to reply, so here again I am with my so-called Theory. First thing first, it's not Recession, but Fear that is biting the industry. Yes, a fear that consumer demand has slowed down or will slowdown because of recession, a fear that people will stop watching TV channels or reading newspapers during recession has made all the media houses paranoid. Ok. NO? Well the fear is sponsors will not give ads since a recession is the outcome of slowing demand.
Now the question is who were major producers or sponsors?
All entertainment, sports channels constantly benefited from a sophisticated cola ad-war for pretty long period. But we have not seen any new refreshing PEPSI or COCA COLA ad in past six months ( this Recession fever started in September). But did that hurt a glamorous IPL or 1st Twenty-20 world cup to kick-start? If you remember, IPL final match's TRP was close to 9 out of 10,an all time high and the telecast was filled with Bharat Nirman ads, which described success story of the UPA government.
The success story of Hindi news channels speaks for themselves.Similarly English and business news chanels also maintained the rally this year.Though Network18's profits dipped last quarter CNBC-Tv18 didn't loose it's glamour.
Now come to print media. Can you remember being amazed to see a daily's classified space, that shrank to almost half of its regular size? I guess no. Tenders, election ads, recruitment ads each came regularly and routinely. Ads of new car launch, insurance schemes still acquire major space in newspapers and tabloids. Have newspapers increased their prices? Surprise, surprise!! In Indore, where I live, Hindi newspapers actually have cut daily prices from 2.50 rupees per copy to 1.50 rupees recently. Have they stopped launching new editions? Well yes and no. DNA recently launched its Bangalore edition, but MINT postponed its Kolkata edition to second quarter of FY10 saying cash unavailability.
Well I see another reason for MINT's halt. In the second part of 2008,Businesss Line, Financial Chronicle were launched in Kolkata, where people pay immense care to see where their money goes. The city is gearing up for new investments in stocks and commodities, at least presence of all major broking houses say that. MINT board may wants to see response of young investors in Kolkata as it presents itself for new investors. "Yes, this might be the case," said a reporter of MINT, which has media baron Rupert Murdoch's Wall Street Journal as an exclusive partner. So where is recession?
Well I see it is cut throat competition, not recession, that gobbles up revenue of the Indian media. One of the Business World's edition last year said nearly 200 channels were launched in 2008. Again Times of India dared enter Hindu's territory in Chennai in April 2008.The country now has six business newspapers and may have one more (thanks to Network18 which has halted its new business daily proposal because of negotiations failure with Financial Times, which they wanted to have as a partner), compared with the US's only one-The Wall Street Journal.
So, the pie is now scattered. Ad revenues are dropping with new competitors; similarly as mobile call rates have been slashed. Yes I admit recession has sent ad revenues of newspapers to new lows, but not in India, in the US. There they have slashed daily prints, not because of recession but because of the Internet, which is emerging as a potential competitor. Carlos Slim, world's second richest person from Mexico will fund legendary New York Times, a Reuters' report said. The Chicago Tribune has filed for bankruptcy for the same reason, the Internet.
Well ,NDTV has announced a freeze in new recruitments and it is also said that top workers will take a 20% pay cut, a report in the wire where I work said recently. Some of my friends said TOI has cut pages and staffs in Bangalore recently because of recession.
