SINGAPORE — The “News Sustainability: Investing in the Future of Asia-Pacific’s Info-Ecosystem” report launched today highlights the critical need for Asia-Pacific’s news media industry to innovate via technological investments and new business models. Commissioned by the Society of Publishers in Asia (SOPA), supported by the Google News Initiative, and prepared by Economist Impact, the report highlights the challenges and opportunities within the region’s news media landscape, and how organizations are rethinking business models as consumer demands evolve.
Evergreen demand for accurate and reliable information
Amid the Covid-19 pandemic and an evolving business landscape driven by digitalization, the role of reliable news in enabling the Asia-Pacific societies to function remains more critical than ever.
The report finds that this demand is strongly apparent in the Asia-Pacific, reflecting the bullish sentiment shared by 82% of surveyed executives who believe in sustainable industry profitability, whilst 83% of media and publishing executives expect healthy demand growth. Yet, many executives think that converting the region’s inherent market value into revenue will be challenging. On top of that, misinformation has become a chief concern among the market stakeholders, expressed by 76% of consumers, whereas 81% of executives believe that misinformation can seriously threaten the news media industry’s long-term sustainability.
“Societies depend heavily on the veracity and accessibility of news to function efficiently. Significant change is happening – socially, economically, and technologically – so regional news media stakeholders must adapt to maintain their industry’s sustainability. Through this report, we hope to provide industry executives and investors, as well as policymakers, the insights needed to build a stronger and lasting news media ecosystem, as it will continue to keep people informed and connected amid our rapidly changing environment,” said Byron Perry, chair of the Society of Publishers in Asia (SOPA).
The need to rethink and innovate business models
Digital transformation is causing a significant rethink of business models across a wide variety of industries in the Asia-Pacific. The news media industry is especially impacted due to changes in consumer behaviors and the rise of digital competitors, highlighting the crucial need for adaptability. Despite this, 53% of news media and publishing executives think their organization’s current business model will not be viable in the next five years, with 62% of them even believing that their organization under-invested in digital strategies over the previous five years.
Views also differ on whether technology has positively or negatively disrupted the region’s news media industry. 53% of all executives believe that digital technologies are threatening news media industry business viability but simultaneously, 87% of all executives believe that the right technology investments can improve long-term industry sustainability.
There is also a dichotomy about how the news media industry must evolve; 54%of all executives believe news media companies must create new revenue sources or business models, especially beyond advertising sales or subscriptions, as noted by 65% of corporate executives and 73% of NGO executives. Meanwhile, 46% of executives believe in intensifying advertising sales and subscriptions, including 38% of media and publishing executives who are less enthused about focusing on other business models. In contrast, industry experts all believe that diversification is needed to build loyalty and revenue in the future – such as via events, podcasts and videos, online classifieds, or even cooking or game verticals.
“The past few years have shown that innovation is no longer a good-to-have, but a critical must-have. While there are different perceptions as to how the industry should innovate its business models, the three keys to success are to embrace technology, to think creatively, and to never compromise on quality” said Naka Kondo, Manager, Policy and Insights, Economist Impact.
“We work closely with news partners across the region to support their goals and strengthen quality journalism and have seen first-hand the innovation that is taking place to explore new business models and find new ways to connect with audiences,” Kate Beddoe, director of News Partnerships, Google Asia Pacific said.
The News Sustainability: Investing in the Future of Asia-Pacific’s Info-Ecosystem report reflects the findings of two surveys conducted by Economist Intelligence across 12 markets in the Asia-Pacific region – one with over 2,000 consumers and another with 500 executives spanning over 20 industries, including 150 media and publishing, as well as those from government and NGO organizations. The report also includes additional insights gleaned from in-depth interviews with media industry experts.
To download the full report, click here.