Summary of finding from the FUTURE & CHANGE STUDY: SOUTH AFRICA 2008
A survey of senior South African newspaper executives found that employee motivation was the single most significant challenge facing the industry – and that organisations needed to improve competencies across all levels in order to meet future challenges effectively. Other findings from the exploratory study conducted amongst 12 executives in October and November 2008 include: Greatest competition to come from other print products. Free newspapers were expected to be the greatest competitor to traditional newspapers in the next five years, followed by content on mobile phones and online news sites compiled by the large search engines such as Google and Yahoo. Scope for significant cost reductions. The majority of respondents believed that newspapers did not operate as efficiently as they could and that significant costs reductions could be achieved without reducing quality. All the respondents to that question felt there was some room for cutting costs with the vast majority – 8 of 9 respondents - saying that there was potential to cut costs by more than 6% and a third saying that operational costs could be cut between 20-30% with little impact. Companies will need to diversify their revenue streams: All respondents to this question agreed that newspapers will need to consider earning revenues from non-traditional sources, with 8 of 9 executives saying newspaper companies will need to look elsewhere for up to a third of their revenues. When asked to reflect on the changes that had occurred in the last 3-5 years and what newsroom loss has hurt the most, the respondents highlighted two issues: Technology - not having the appropriate knowledge to keep up. “Not being up-to-date with the internet” Qualified staff - osing experienced staff to bigger publications with new staff not being up to scratch. “Loss of quality journalists, level of new trainees is shocking” “Experienced middle management” “Experience” Work is needed to prepare for the challenges ahead. All respondents felt companies were ready for the challenges ahead: 8 of the 9 respondents felt that companies were no more than 50% prepared. Respondents felt there was a great need for developing middle-management, particularly in the editorial and advertising departments with 8 of 9 respondents saying work in this area was very or extremely important. What is the single most important change that has to be implemented in your newspaper over the next year? Responses to this question varied greatly, but could be considered to fit into two broad themes: developing staff and systems to implement multimedia news operations, and developing management that can effectively streamline operations for greater efficiency. The exploratory study, conducted in 2008 by François Nel, director of the Journalism Leaders Programme at the University of Central Lancashire in Preston, UK, is now being expanded globally in collaboration the World Assocation of Newspapers-IFRA. Senior commercial and editorial executives from newspaper companies are invited to participate and, as a way of thanking them for completing the 20-question survey, the researchers will send them the final 2009 World Newspaper Future & Change Study report. The results of the survey will also be analysed for a Shaping the Future of the Newspaper project report for the WAN-IFRA, to be published in December 2009. Please click HERE to take survey, which should take no more than 20 minutes to complete. [If you are not the correct person to answer the survey or think other colleagues should also participate, do please forward this information on.] If you have any questions, don’t hesitate to contact the project coordinator François Nel at: FPNel@uclan.ac.uk . Thank you in advance for participating in the World Newspaper Future & Change Study 2009. Newspaper Future & Change Study: South African 2008 – 1
Who participated in the 2008 SA study? Respondents were principally commercial managers, including several at CEO level.
Respondents were from Gauteng, Western Cape, KwaZulu-Natal, Eastern Cape and the Free State. There were no respondents from Mpumalanga, Limpopo, Northern Cape or North West provinces.
CONSIDERING FUTURE COMPETION All the respondents to this question (10 of the 12) agreed that the strongest competition to the South African newspaper market would come from other print products – free newspapers. Content distributed over mobile phones and news aggregators, such as Yahoo News and Google News is also seen to be strong competitors. Local radio, television and blogs were not considered to be a considerable threat by the majority of the respondents.
Innovation was needed to respond to the decline in newspaper readership amongst young people and the majority of respondents felt that the solution was in digital – not print – products.
Newspaper Future & Change Study: South African 2008 – 2
AREAS FOR IMPROVEMENT Responses show that executives are juggling the duel challenges of operating more efficient and effective businesses, while trying to foster greater innovation at a greater pace. Employee motivation was considered to be the single most important management challenge. Also highlighted in the survey is the need to develop the capacity of staff across the organisation - from those making strategic decisions at board-level to those charged with implementing strategy. Most of the participants did not see greater cooperation amongst industry players as an area on which to focus resources.
NEWSROOM INTEGRATION Participant responses suggest that while challenges remain, there is greater satisfaction with newsrooms where print and digital operations are merged. Most of the respondents from companies where their print and digital operations are separate are dissatisfied with the situation.
The responses here suggest that there is significant appetite for change amongst those respondents where print and digital news operations were not integrated.
Newspaper Future & Change Study: South African 2008 – 3
STAFFING LEVELS Responses show that the trend towards increasing staff which was prevalent in some quarters over the preceding three years was likely to end.
The majority expected staffing levels to be cut or remain stable in the year ahead. None expected an increase.
THE CHANGING NEWSROOM What change in your newsroom has contributed the most to your ability to be competitive? Responses to this question highlighted the contrasting experiences of the various newspapers. Those who raised concerns about their response to the rise of the internet reported satisfaction in their new journalists in contrast to those who were disappointed in their new trainees but felt their own online content had improved their competitive ability. But, as demonstrated below, some respondents were unsure about what was required or were not confident their organisation was making the changes required. Verbatim responses to this question: “Strong, consistent news – great potential in new journalists” “Online launch” “Become internet motivated” “Don’t know” “Nil” What is the single most important change that has to be implemented in your newspaper over the next year? “Strong focus on internet and mobile” “Copy sharing in group” “Editorial Management” “Implementing a multi-media newsroom” “Cost-effective staff structure” “Adapt to more efficient resource allocation” “A greater understanding of new media” Newspaper Future & Change Study: South African 2008 – 4