THREE of Zimbabwe’s biggest media outlets are among the worst hit, as rapid shifts in consumption patterns shakes markets, inspired by technological changes, a new report said this week.
In a 38-page paper assessing media viability in Botswana, Eswatini, Lesotho, Malawi, Namibia, Zambia and Zimbabwe, media watchdog, Media Monitors hinted plummeting circulation figures and viewership were pushing media outlets to the brink, before acknowledging significant investments in technologies to stand up to the beast.
At the heart of the crisis, which Zimbabwean media knew decades ago but procrastinated to take action, were serious cuts in advertising by fragile industries, plummeting print runs and lack of funding, which has ended with corporate graveyards in smaller operators.
But access to capital has mainly been triggered by high risk profiles as balance sheets unravel, forcing banks to apply brakes on lending.
The wave of closures is not only restricted to Zimbabwe.
It is a worldwide phenomenon.
But Zimbabwe’s was already at the vortex of a brutal economic crisis when the rapid transitions began, with job cuts affecting disposable incomes and demand for news.
A pandemic that shook the world from 2020 shifted readership patterns, as print media consumers trooped to online platforms.
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Now, media companies are struggling to convince them to return to the printed copy, which attracts higher advertising revenues.
The result has been a near catastrophe.
Nobody knows how it will end.
But media organisations, most of them still running on massive infrastructure that supported operations before the pandemic, have struggled to cope.
Expensive infrastructure is now the biggest threats to viability as incomes suffer.
Media Monitors said publicly-owned firms like the Zimbabwe Stock Exchange-listed Zimbabwe Newspapers (Zimpapers) and the Zimbabwe Broadcasting Corporation (ZBC) were forced to retrench in 2022, citing depressed revenue.
It said similar developments were reported at Alpha Media Holdings (AMH), the country’s largest private media outlet.
“The majority of Zimbabweans earn an average of less than US$70 per month,” Media Monitors said in the report, which is titled; ‘Media Viability in Southern Africa: An Exploratory Study’.
“As a result of the pandemic, the purchasing power of the media’s target market declined whilst corporates also sacrificed their advertising budgets, which forced most media platforms to downsize operating at 50% capacity in some instances.
“Newspaper copy was trimmed from 32 pages to 16 pages. As a cost cutting measure, they had to review their distribution routes by focusing on convenient locations. The pandemic added to Zimbabwe’s economic turmoil, exacerbating the financial constraints already faced by media organisations.
“Declining advertising revenues, reduced circulation of print publications, and limited access to resources affected the sustainability of media outlets.
“Some media organisations had to downsize their operations, reduce staff, or suspend operations temporarily. Public-owned Zimpapers and ZBC retrenched in 2022 staff citing depressed revenues,” it added.
The bloodbath is also being felt in community radio stations, most of them newly established after government’s wholesale issuance to licences countrywide, without coming up with a viable game plan.
Last week, Supa Mandiwanzira, founder of AB Communications, which controls ZiFM Stereo, said unless government and development partners chip in with budgets, the future was gloomy for community radios.
The report pointed out funding gaps confronting community radio stations, most of which operate in regions where advertising is difficult to secure.
“At the time of compiling this research VeMuganga Community Radio noted that some community radio stations had a limited transmission radius of 10 km instead of the 40 km radius they applied for, which will see the stations fully execute their licenced mandate,” the report reads in part.
“Community radio stations rely on volunteers who are most likely to be demotivated by the bleak situation at the stations as they do not have adequate basic broadcasting equipment, which includes recorders and cameras.”
It said although success was still limited, media outlets were strategically repositioning, putting paywalls and publishing e-papers editions to diversifying their revenue streams.
However, Media Monitors said the companies must continue to embrace digital transformation, which includes growing their online presence, improving their websites and mobile applications, and investing in digital advertising technologies.
“The pandemic accelerated the digital transformation of Zimbabwe’s media landscape. With physical distancing measures in place, online platforms became crucial for news consumption and engagement,” the reports points out.
“Media outlets expanded their digital presence, focusing on online news platforms, social media, and streaming services.
“This shift highlighted the importance of digital skills and infrastructure, with media organisations investing in digital technologies such as applications to reach their audiences,” it further states.
