S K Khurana
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Unequivocally, constant flow of unprompted suggestions from various eminent
experts overwhelms during economic tough time to render an effective wave
in the standing water of economy by providing decision-makers flexibility and
strengths for opting appropriate options towards business. This has been explicitly occurring
all over to minimise the impact of recession on the performance of every industry including
the newspaper-publishing segment. Select premeditated measures have been taken by
newspaper companies across world and India as well, be it cost cutting, and generating
new avenues for revenue generation, etc. But to adopt the most influential model ensuring
expected results remains a challenging task.
Meanwhile, in our previous issue, we hashed out
‘cover price model’ suggesting to review traditional
approach about it. And since then, we observed
quick action taken by some of the Indian newspaper
publishers in form of increased cover price.
To name a few, at national level, Hindustan Times
(HT) revised cover price to Rs 3.00 from 2.50
for six days and to Rs 5.00 from 4.50 on Sundays
(effective from May 25, 2009). Simultaneously,
The Times of India also marked price equal to
HT, while NBT priced at Rs 3.50 from 3.00. At
regional level, cover price of HT Chandigarh with
sixteen pages has also been fixed at Rs 3.00, and
for two days of the week, Punjab Kesari is now available for Rs 3.50 in place of 3.00.
Of course as of now, it is praiseworthy decision and may be one of the most effective
measures to satiate revenue of the newspaper publishing houses. Actually, newspaper
business models are veritable in nature. There does not exist a sure short successful
model assumed in a particular area that will prove equally beneficial in other regions too.
So far mostly Indian newspaper publishers have been following ‘low cover price model’
as implemented in Europe and the US. Albeit, this model may be successful in these countries,
but owing to different nature of market and social structure, it can hardly prove prospering
in India in business point of view. The very basic reason is newspapers have quiet good
waste value in our country unlike developed world where readers have to pay for disposal
of newspaper waste. Resultantly, if publishers in India provide newspapers at very low
cover price or for free, lot of readers inspire to collect these just for selling waste.
Obviously, increase in cover price by the select newspaper houses indicates good sign
of avant-garde emerging in Indian newspaper industry, remaining all doubts and dismays
far behind. If this change occurs across the country including leading English and vernacular
dailies bringing near-parity in cover pricing, the results would reach the industry at the
next level ensuring multi-dimensional growth and reducing lot of waste. So, without
procrastinating, pre-eminently pondering over to take advantage of the sane model of
cover pricing apart from assuming other stimulating ways would bolster possibilities of
shining success!
