The Competition of the Digital Media Economy
According to the State of the Digital Market Report 2024 - an annual report on social media trends published by We Are Social and Meltwater, there are more than 5 billion social media users worldwide, accounting for 62.3% of the world's population. In Vietnam, in 2023, more than 70 million people (accounting for 71% of the population) will use social media.
In the information market of newspapers and social media, in the same public community, if in the past, newspapers had their own market share in providing mass news, now the monopoly has been eliminated. Journalists and press agencies are no longer at the forefront of providing mass information, but the sources of news are diverse (both organizations and individuals, both professionals and amateurs).
The biggest news competitor of the press today is social media. Information on social networks is spread quickly and is highly interactive thanks to 4.0 media technology. The strong development of social media has greatly affected the activities of press agencies, even disrupting and changing the current media environment.
According to the Ministry of Information and Communications, the revenue of newspapers and magazines in the first 9 months of 2023 decreased by 9.4% compared to the same period in 2022. The total revenue of radio and television stations in 2023 decreased by 23% compared to 2022. Most stations were unable to fully exploit the advertising time/day; some stations only had a few minutes of advertising time per channel per day.
In fact, whether it is print, online, radio or television, it still relies heavily on advertising revenue. At times, advertising revenue always accounts for over 60%, even 90% for some press agencies. However, press agencies are currently facing the risk of a sharp decline in revenue, in the context that social networking platforms such as Facebook or Google have taken away about 70% of advertising revenue of mainstream press.
Diversify income sources
In his speech at the International Scientific Conference on Journalism and Media Economics in the Context of the Digital Economy, Associate Professor, Dr. Nguyen Van Dung - former Head of the Faculty of Journalism - Academy of Journalism and Communication said that revenue in the journalism sector has continuously decreased in recent years, many agencies have seen a sharp decrease; while the number of employees remains the same, showing many problems.
The first reason comes from the explosion of information on social networks. Social networks are mainly controlled by technology giants, because they have many smart algorithms that help connect and innovate, creating a more open and free communication space.
In addition, the press has not yet adapted to the digital media environment, along with an inadequate awareness of the nature and source of the power of the press, so the content and form of press information is still monotonous, poor, one-way and passive. While information on social networks is exploding, the need for the public to receive, share, connect and participate in creation is increasing rapidly.
Journalist Le Quoc Minh - Member of the Party Central Committee, Editor-in-Chief of Nhan Dan Newspaper, Deputy Head of the Central Propaganda Department, Chairman of the Vietnam Journalists Association - said that the trend of major press agencies in the world is to diversify revenue sources through the following forms: Traditional advertising; implementing paywalls; doing media; e-commerce; licensing brands; providing information technology services; organizing research...
In addition, press agencies also promote the organization of events to generate revenue. According to journalist Le Quoc Minh, in the near future, press and media agencies will also aim to seek revenue from readers as a safe and sustainable source of income.
