Media revenue strategy must grow alongside digital reform

Growing through quality and financially was at the forefront of the topics at last week’s talk show Photo: Chi Cuong

Last week, the talk show “Digital Media for a Stronger Business Partnership” was held by Vietnam Investment Review on the occasion of the Vietnam Journalists’ Day in its studio, which was built in early 2022.

The talk show is part of the newspaper’s efforts on its digital transformation journey. Unlike the past when it focused only on print and online, now talk shows are becoming an important part of the entire system.

VIR editor-in-chief Le Trong Minh said that digital transformation begins with moving and developing new digital-based products to meet the demands of readers and businesses. “Where our readers are, we are also there,” he said.

Other Vietnamese press agencies have made new moves towards the media-tech model. Earlier in June, Nhan Dan put into operation a newsroom covering 400 square metres as an important solution to implement its digital transformation journey. Editor-in-chief Le Quoc Minh explained, “In recent times, we have carried out innovations, including the model of the convergence newsroom. The model will enable smoother work and increased creative spirit of reporters and editors, while ensuring the multi-platform system of the newspaper.”

At VIR’s talk show, policymakers, experts, and businesses also agreed with the direction. According to Assoc. Prof. Dr Bui Chi Trung, vice dean at the School of Journalism and Communication under the University of Social Sciences and Humanities at VNU Hanoi, the future of press agencies depends on building relationships with readers. “Digital transformation does not start from tech, but first of all, it must start from transformation of mindset and awareness, especially that of press agency leaders,” Trung said.

While being aware of the importance of digital transformation, press agencies are facing technological, capital, and human resource challenges amid a fall in revenues due to growing competition from social networks.

Mai Huong Giang, deputy director general of the Authority of Press under the Ministry of Information and Communications (MIC) said that the journalism economy and digital transformation has been a hot issue in the past few years. “It is a solution to help press agencies increase revenue. We have also proposed tech companies to support press agencies in this transformation,” Giang said. The important thing is that solutions for them are being taken shape and feasible, Giang added.

Nguyen Manh Hung, Minister of Information and Communications, said that the ministry will oversee the building of a number of shared technology platforms for press agencies, especially smaller ones that are facing limitations in tech application.

“To help these agencies increase revenues, we expect the prime minister to direct local authorities at all levels to increase 30 per cent of the set budget for press products,” Minister Hung said. “Currently, annual investment in the press is less than 0.2 per cent of the country’s total investment expenditure of the state budget.”

A World Press Trends study released in March said more than half of global press publishers are concerned about their short-term financial prospects due to new challenges.

The increase in newsprint costs alone means publishers are raising cover prices or reducing the number of pages, which could lower demand. Due to that, 55 per cent of the publishers surveyed are pessimistic about the next 12 months, but nearly 54 per cent are optimistic about prospects for the next three years.

News organisations from emergent markets are more optimistic in the short term, with some publishers from developing countries expecting to grow revenues by almost 25 per cent compared to 2021. More optimistic publishers tend to be more resilient in adapting and less reliant on revenue streams such as print circulation and advertising.

The report surveyed 167 media leaders from 62 countries.

The impact of media on investment Vietnam’s business press has been making contributions to the successful performance of enterprises and experts in the country. However, improvements are needed to meet the growing demands of readers.