'Urgent need to explore new rev models, cost-cutting measures, reinventing content'

Mohit Jain, the outgoing president of the Indian Newspaper Society (INS), has said that there is an urgent need to explore new revenue models, effective cost-cutting measures, and above all to reinvent and improvise the content for readers.

Speaking at the 83rd AGM of the INS, Jain said that the Indian newspaper industry’s growth will depend on the futuristic and strategic thinking of newspaper publishers for up-gradation, technology adoption, and competence building in their manpower and reach.

Jain noted that the newspaper industry is facing its biggest challenging test in the backdrop of geopolitical events and spiralling inflation. "Against the backdrop of recent geopolitical events around the world, we have witnessed significant changes in the economic landscape of our country and the world at large. Undoubtedly, this is the most challenging test we have ever faced. Having said so, I may like to add that the darkest hour always is before dawn," he added.

He also stated that the newspaper industry needs to remain united in these challenging times. "We should continue to stand united, strong, and resolve to serve the readers of this great nation with authentic, verified, and trustworthy news that makes us stand apart from other media."

He mentioned that the government has made a number of announcements of relief, but the newspaper publishers did not receive any relief in terms of economic viability for the publishers.

"As per the government’s data, the inflation is now under control and this is, indeed, encouraging for all of us. However, these indicators have not yet led to a substantial increase in demand for newspapers/magazines across the country. It is pertinent to mention here that continuous increase in the price of raw materials and other related costs have affected bottom lines of the print media industry," he elaborated.

The print industry, according to Jain, needs to emphasie on quality and credible journalism as advertisers have started to prefer their brands to be associated with credible news sources which is a positive trend.

Below are the key activities of the INS in 2021-22 as outlined by Jain:

9th Rate Structure Committee: The Ministry of Information & Broadcasting constituted the 9th Rate Structure Committee and data/information/comments were called upon from the Society, in this regard. Your Society has submitted a detailed representation to the Ministry elaborating that the current formula used in fixing the CBC (erstwhile BOC/DAVP) Rates do not capture all the costs involved in newspaper production and variable costs. From this platform, I urge the I & B Ministry that before placing the final recommendation of the 9th Rate Structure Committee, they must empathetically analyze and take into consideration the economic viability of the publishers in India, considering the current situation of inflation and GDP.

Customs Duty on Newsprint: The Indian Print Industry is also saddled with the double whammy of shortage of newsprint and on the other hand the prices of imported as well as indigenous newsprints have risen to an all-time high level which has created an enormous financial burden on the publishers. In view of the severe crises in the Newspaper industry due to the effects of COVID-19, digital media, shortage of Newsprint, price rise, and Rupee depreciation impacting the price of imported Newsprint, I request the Government for the withdrawal of residual 5% customs duty on imported newsprint.

IT Rules, 2021: As you are aware, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 were notified by the Ministry of Electronics and Information Technology on 25.02.2021. The matter is still pending with the Honorable Supreme Court of India. The Court has directed a stay on all proceedings challenging the IT Rules and Cable TV Amendment Rules pending before the various High Courts in the country. Your Society is keeping a vigil on the proceedings and if need be, will move the Court at an appropriate time.

Registration of Press and Periodicals Bill, 2022: A draft of the amended bill “Registration of Press and Periodicals (RPP), 2022” to replace the existing PRB Act, 1867 was not made available to the stakeholders for comments. However, your Society took suo moto note of it and approached the Ministry to share the draft bill of “Registration of Press and Periodicals (RPP), 2022”.

Investigation against Google by CCI: The Print Industry is facing stiff competition from social media giants like Google and Facebook that defies the conventional definition of media. Your Society has filed a complaint with the Competition Commission of India (CCI) against Google. It was stated that Alphabet Inc. (parent company), Google LLC, Google India Private Limited, Google Ireland Limited, and Google Asia Pacific Pte Ltd are allegedly abusing their dominant position in the Indian online news media market. It was highlighted that the producers/publishers of news that are made available in digital format, are not being paid a fair value for their content, despite them having invested heavily in creating appropriate content for the customers, who search for news items using the Google platform. The CCI after examining the contentions of the Society found that prima facie these allegations of abuse of dominant position are under the purview of the Competition Act, 2002 and that it requires a detailed investigation.

Examination of ‘Anti-Competitive Practices by Big Tech Companies’ by Parliamentary Standing Committee on Finance: The Parliamentary Standing Committee on Finance Branch invited the Society to discuss the issue of ‘Anti-Competitive Practices by Big Tech Companies. It was also mentioned that a background note on the said matter may be furnished for the information of their members. Accordingly, your Society has submitted a detailed note to the Additional Director, Parliamentary Standing Committee on Finance Branch, Lok Sabha Secretariat.

Comments on TRAI media ownership Consultation Paper: The Telecom Regulatory Authority of India (TRAI) issued a consultation paper on the issues relating to media ownership and comments were invited on the consultation paper from the stakeholders. Your Society has submitted its detailed comments to the authority specifying its contention that, since the beginning of this issue, the Society is of the firm opinion that TRAI has no jurisdiction or authority to issue the Consultation Paper in respect of Cross Media and Ownership restrictions and there should be no restriction on the Cross Media Ownership in the industry.

Challenges of Indian Press: Even though the Press is regarded as one of the pillars of democracy there are instances where the Press in India faces difficulties. Injunction and defamation suits are some of the common ways of censorship. The Society has, from time to time, taken up such issues and urged the authorities to deal sternly in these matters to ensure security and protection of the Press.