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Newsletter n° 31

22.09.2003
THE BUSINESS OF NEWSPAPERS PRINTING & DISTRIBUTION

1/3 Publishers in Study Badly Equipped to Run a Newspaper

Out of the thirty-some editors-in-chiefs and publishers who took part in a 2-year study on small publications in South Africa, only 8 were found to have effectively managed to grasp the logistics of the business of newspapers.

Out of the thirty-some editors-in-chiefs and publishers who took part in a 2-year study on small publications in South Africa, only 8 were found to have effectively managed to grasp the logistics of the business of newspapers.

Those who understood the "business of newspaper"’ were more ’survivalists’ than anything; often possessing little or no formal training, had no understanding of computers and how the internet works, their offices were their cell phone and they couldn’t always afford the rent.

Yet these businessmen and women also knew how to publish and what it was about, such as managing cash flows and getting their publications out on the street: "Most of the successful ones were real entrepreneurs, and had, from the very start, run their newspapers outside of the journalistic "activist" framework and worked like businessmen," said Graeme Addison in an interview with RAP 21 (see Newsletter n 30/2003).

These small newspaper managers faced certain practical problems.

One such problem: To attract advertising, a publisher would tell his or her advertisers the newspaper was publishing a certain number of copies per week, (for example 10,000 copies) but in actual fact, the publisher would be producing much less. Over a few months, this gap would magnify, and a serious shortfall would emerge from what they had told advertisers they were publishing and from was being produced in reality.

The problem was very much rooted in an inability to sort out their distribution systems, and this translated into bad business dealings with advertisers.

Securing financing is another seemingly endemic problem for even the most dedicated newspaper managers. Most publishers of small publications tend to finance their publications themselves, whether through personal loans, through banks or friends. The study found that many involved were often compromised by the banks. An example of this is being refused loans because one’s own personal bad credit rating, causing some publishers to search out less legitimate means to finance their publications.

How to overcome these financial constraints? Do what you can to clear your credit rating with the banks, a much safer and more secure method of establishing financing. Also, establish a rapport with small businesses and with local government and the NGO community. This is a crucial part of the marketing of small newspaper.

Tips to overcome some of your distribution problems: when publications are facing problems of distribution, many publishers did not think they could feasibly go to the established media to ask for assistance in distribution. This is a viable option, particularly if the small newspapers are high quality publications.

Finally, whenever possible, embrace the internet: The internet is a key component in any future development of publications. Through this medium, new publishers can reduce costs, increase coverage and gain valuable connections with each other and advertisers through an internet "spine".

To receive a FREE copy of the Print Media South Africa report, email rap21@wan.asso.fr


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