Business Challenges and Employee Welfare
The media landscape in Nepal has undergone a remarkable transformation, playing a pivotal role in shaping public opinion and informing the citizenry. This evolution, however, is not without its complexities. From its inception, the media has held the power to influence the public mindset and catalyse significant societal and national shifts. These changes can be positive or negative, underlining the media’s dual nature. Notably, the media itself is not immune to change, constantly adapting to evolving landscapes.
The journey of Nepal’s media is a testament to this dynamism. From the traditional print media, with its established power dynamics, to the burgeoning digital platforms, the sector has constantly reshaped itself. This growth presents a compelling narrative, but also brings a unique set of challenges, particularly concerning the business models adopted by media houses and their impact on employees. The most significant transformation in Nepal’s media industry occurred after the restoration of democracy in 1990 (2062/63 BS). Prior to this, working with the media held immense prestige, but also carried a sense of hidden power wielded by those within its ranks. Back then, the media landscape was dominated by state-controlled entities like Gorkhapatra National Daily, Radio Nepal and Nepal Television.
Democracy ushered in a dynamic and diverse media landscape. A plethora of newspapers, radio stations, television channels, and digital platforms emerged, including established names like Kantipur National Daily, Annapurna Post, and Naya Patrika, as well as online powerhouses like Onlinekhabar.com and Setopati.com. This evolution mirrored the country’s progress towards a more open and informed society. Within a decade, a staggering 3,500 different media outlets were registered under the Nepali government, encompassing print, radio, television, online, and even YouTube-based platforms. This rapid growth, however, presented a double-edged sword. The business models that sustain these media entities offer both opportunities and challenges.
For nearly 12 years, Nepal’s media industry experienced a boom. Media houses transcended their traditional role, transforming into corporate entities. Departments beyond the editorial team became integral components of these organisations, fostering a sense of pride within them.
Broadcast media adds another vibrant dimension to Nepal’s media landscape. Television, introduced in 1985, flourishes with both private and state-owned stations catering to diverse audiences. Nepal Television (NTV) serves as a cornerstone, focusing primarily on government affairs. Himalaya Television offers a broader content base, promoting local productions alongside internationally recognised programmes. Kantipur Television (KTV) positions itself as a news opinion leader, attempting to compete with established online news portals like Onlinekhabar.com and Setopati.com, which already hold a significant sway in the current digital age.
Advertising remains the lifeblood of most media houses, supplemented by subscriptions for daily newspapers, grants from diverse government and non-governmental organisations, and in some instances, corporate ownership. These financial structures are the backbone of the industry, ensuring media survival and growth. However, they also present a complex web of challenges impacting employees.
Job insecurity, high workloads, and ethical dilemmas plague many journalists and media workers. This is particularly true when editorial independence is compromised by the financial interests of the media houses they serve. The financial constraints faced by many outlets further restrict opportunities for professional development, ultimately affecting the quality of journalism produced. This is especially worrisome for major print publications and national television channels.
As the Nepali media industry navigates these intricate complexities, prioritising the well-being of its employees is paramount. To foster a resilient and credible media sector that effectively serves the public, ensuring fair working conditions, advocating for editorial integrity, and investing in professional growth for journalists and media workers are critical steps.
Sources of Revenues or Business Models of Nepali Media
Nepali media houses have become heavily reliant on commercial advertising as their primary revenue source. Sales revenue, particularly from newspapers and television, contributes minimally due to low subscription rates and free-to-air broadcasting. This overreliance on advertising has become increasingly problematic as traditional revenue streams have dwindled significantly since the COVID-19 pandemic, with overall revenue plummeting by over 30%.
The industry is now grappling with the challenge of developing sustainable business models to ensure its survival. Even major print and television outlets are struggling to meet daily expenses, including employee salaries. This investigation explores the evolving business models in Nepali media and how organisations are adapting to these challenging circumstances within the context of traditional media. Understanding the intricacies of the media industry’s business model is crucial for its sustainability, especially in the current environment where growth is no longer a primary focus.
Advertising: The Backbone of Nepal’s Media Industry: Advertising is the primary revenue source for most Nepali media outlets. This primarily comprises ‘loose advertising’, which encompasses commercials and public notices placed by both private and public entities. Before the COVID-19 pandemic, Nepal’s advertising market was robust, exceeding Rs 14 billion. A network of over 300 advertising agencies, each employing an average of 15-20 individuals, facilitated this industry. Notable agencies like Thompson Nepal, Max Media, Prisma Advertising, Avani Advertising, Enigma, Adrelese, and Outreach Nepal significantly contributed to their clients’ success.
Both print and electronic media heavily rely on advertising revenue from businesses and government institutions. However, the post-pandemic landscape has introduced volatility due to economic fluctuations and increased market competition. While advertising remains crucial, its reliability as a revenue stream has diminished. The media industry is adapting to this changing landscape. While traditional print and television advertisements persist, digital advertising is rapidly gaining prominence. The shift from television to YouTube has created new opportunities, especially for smaller content creators. Additionally, native advertising, where sponsored content integrates seamlessly into editorial content, has become a significant revenue source, as exemplified by programmes like ‘Voice of Nepal’, ‘Nepal Idol’, and ‘Roadies’.
Despite these developments, the overall media business revenue in Nepal is approximately Rs 3.8 billion, encompassing all above-the-line marketing activities. A significant challenge hindering advertising investment in traditional media is the lack of audited viewership data for television channels and circulation figures for newspapers.
Short Term or Annual Events and Sponsorships:
In recent years, short-term and annual events have emerged as a promising new revenue stream for Nepali media houses. Recognising the limitations of traditional income sources, media outlets are actively exploring diversified revenue generation avenues. This trend can be traced back to 2008, with Kantipur Publications pioneering the concept with the ‘Kantipur Marathon’. This event marked a turning point, demonstrating the potential of creating new revenue streams by venturing beyond traditional advertising models. The success of the marathon paved the way for other initiatives like the Nepal Housing and Land Expo. Today, it is commonplace to see media organisations hosting events almost every month. Sponsorships play a key role in these events, with logos displayed prominently and participation models akin to those adopted by Bizmandu.com, among others.
This shift reflects a strategic adaptation by media outlets leveraging their reach and credibility. By organising conferences, seminars and workshops, media houses provide valuable platforms for networking, knowledge sharing and brand exposure. Partnerships with sponsors allow them to generate revenue while offering enriching experiences for their audiences. As a result, the focus is gradually shifting towards long-term and short-term sponsorship-based revenue generation through events organised by media houses.
Corporate Ownership and Media Conglomerates in Nepal:
In response to the challenging financial landscape, many Nepali media outlets have sought refuge under the umbrella of larger corporate entities. A prevalent trend is the formation of media conglomerates or the acquisition of media houses by existing business conglomerates. For instance, KMG Corporation oversees Kantipur Television, newspaper, and radio, while Simrik Ventures manages Annapurna Post and AP1 Television.
This model offers short-term financial stability to media houses. However, it also raises concerns about potential conflicts of interest, as media owners often have investments in other sectors like payment gateways, financial companies, real estate and fast-moving consumer goods. This interconnectedness can compromise editorial independence, as media content may be influenced by the interests of the parent company or its affiliates.
Subscription Models: A Double-Edged Sword for Nepali Media:
While advertising remains the dominant revenue stream for Nepali media, some outlets are cautiously exploring subscription-based models. This approach offers a potential path towards financial sustainability, although with its own set of challenges. For instance, the nation’s highest-circulating daily newspaper. It generates an estimated annual revenue of Rs 3,400 per subscription. However, online news portals like Onlinekhabar.com, Ekantipur.com, and Ratopati are still struggling to crack the subscription model code. Notably, Setopati.com has taken a pioneering step by introducing premium content for paying users.
Subscription models offer media organisations a direct revenue stream from their audience. By providing exclusive articles, in-depth analysis, and value-added services, outlets can incentivise readers to subscribe. However, the success of this approach hinges on creating compelling content that resonates with readers and justifies the subscription fee. The road to a thriving subscription model is not without its obstacles. Nepali audiences, accustomed to consuming free content, may be hesitant to pay for news online. Additionally, establishing trust and offering unique value propositions will be critical to convince readers to subscribe. Only by demonstrating the added worth of their content can media outlets build a loyal subscriber base and achieve sustainable revenue generation through this model.
Impact on Employees due to these challenges:
The business strategies employed by media houses have a direct and significant impact on the lives of their employees. Media professionals often grapple with a complex array of challenges, including job insecurity, excessive workloads, inadequate compensation, ethical dilemmas, limited opportunities for professional development, and an imbalanced work-life relationship.
To cultivate a sustainable and supportive work environment, media organisations must prioritise the well-being of their employees. This involves investing in comprehensive training and development programmes, ensuring fair compensation packages, and fostering a strong ethical foundation within the workplace. By addressing these critical issues, Nepali media businesses can create an environment where employees can thrive, ultimately leading to improved journalism and a healthier media industry overall.
The Nepali media landscape is undergoing a period of significant transformation, with far-reaching consequences for its employees. Business strategies adopted by media houses, initially focused on maximising revenue, have inadvertently created a precarious environment for those who work within the industry. The largest media houses in Nepal have seen a drastic reduction in staff, some downsizing by as much as 70% in the past five years. This trend extends beyond major corporations, impacting smaller media outlets as well. The rise of digital media has further exacerbated the situation, leading to the closure of numerous online publications and radio stations. The advertising industry, which once boasted over 300 agencies, now operates with a significantly reduced workforce, with less than 100 agencies remaining fully functional.
This shrinking landscape translates into job insecurity for media professionals. As media organisations downsize and restructure to survive in a dynamic market, layoffs and an increased reliance on contract-based employment have become commonplace. This lack of long-term stability generates stress and uncertainty among employees. The limited workforce often struggles to manage the ever-increasing volume of work, encompassing operational tasks and the constant pressure to generate revenue. Journalists, in particular, face an intense workload, expected to produce a higher volume of content under tight deadlines, leading to fatigue and burnout.
The challenges faced by Nepali media employees go beyond job security and workload. Long working hours, heavy workloads, safety concerns, ethical dilemmas, low salaries, limited training opportunities, and a persistent gender gap all contribute to a challenging work environment. To improve these conditions, media organisations must prioritise the well-being of their employees. This requires providing fair compensation packages, implementing effective safety measures, promoting ethical journalistic practices, and investing in training programmes that foster professional development. Additionally, creating a more inclusive and equal workplace that addresses the existing gender disparity is critical. By focusing on these areas, Nepali media can cultivate a healthier and more productive environment for its employees, ultimately benefiting the industry as a whole.
The ownership structure of media houses can significantly impact editorial independence. When media outlets are owned by business conglomerates or heavily reliant on specific advertisers, there is a risk of editorial content being influenced to align with the interests of these stakeholders. This undermines the credibility of the media and its ability to function as a watchdog of society. The issue of editorial independence has been a subject of much debate and concern in Nepal. Examples of potential conflicts include instances like the reported clashes between a former Home Minister and a leading media house, or the coordinated press statements issued across various publications. Several factors contribute to the challenges faced by Nepali media in maintaining editorial independence. Government control, restrictive legislative frameworks, the financial interests of owners or advertisers, media ownership structures, and the lack of adequate protection for journalists all play a role in compromising independent reporting.
To ensure the media can fulfil its vital role in informing the public and contributing to a vibrant democracy, stakeholders across the spectrum need to work together. The government should enact legal frameworks that safeguard press freedom, media organisations must prioritise transparency in their ownership structures, and efforts towards financial sustainability for media outlets are crucial. Finally, fostering a culture that values and protects the independence of journalists is essential. By addressing these challenges, Nepali media can reclaim its rightful position as a powerful voice for the people and a champion of a just and informed society.
Is traditional Nepali media dying?
The question of whether traditional media is on the decline has become increasingly pertinent in the digital age. The emergence of social media platforms like YouTube, Reels and TikTok, characterised by short-form, instantly consumable content, has posed a significant challenge to the established order of newspapers, television, and radio.
Evidence suggests a marked shift in information consumption patterns. People are gravitating towards digital platforms, seeking out news and entertainment in shorter, more digestible formats. This trend is evident not only in Nepal but also in many other countries. The once-invincible power of print media is now being questioned, as research indicates a decline in in-depth reading and a growing reliance on headlines for information consumption. Similarly, television viewing habits have evolved, with audiences increasingly opting for short video clips on their mobile devices.
The impact of these changes is far-reaching. The exodus of journalists from the industry, both to foreign countries and to non-media related fields within Nepal, further underscores the challenges faced by traditional media.
This raises a critical question: Is the era of print and television drawing to a close as digital media continues to evolve and capture the attention of audiences?
Conclusion
The Nepali media industry is grappling with the aftermath of the COVID-19 pandemic, striving to regain the financial heights it once enjoyed. The years 2014-2017, when the industry generated approximately Rs 1,400 crores in business, serve as a benchmark for the sector’s potential. However, the road back to such prosperity is fraught with challenges. Advertising remains the cornerstone of the Nepali media industry, providing crucial financial support that enables media outlets to produce content and diversify their platforms. While it presents opportunities to reach wider audiences and adapt to evolving consumer trends, advertising also introduces ethical considerations and complexities.
The Nepali media landscape is characterised by its dynamic nature and the significant impact it has on its employees. Challenges such as job insecurity, compromised editorial independence, and limited professional development opportunities persist. To navigate these hurdles, media organisations must prioritise employee well-being, explore diversified revenue streams, and foster an ethical environment.
Despite these challenges, the Nepali media industry exhibits resilience and adaptability. It continues to evolve, seeking innovative revenue generation strategies and exploring new avenues for growth. The media’s role in shaping public opinion and promoting democracy remains pivotal to the nation’s development. While the journey towards recovery is arduous, the Nepali media industry’s ability to adapt and innovate offers hope for a sustainable and thriving future.
