“It’s just business, nothing personal”
With the elections over and the reigns back in our beloved PM Modi’s hands, leading media companies like Times of India, The Hindu group & the Anand Bazaar Patrika (ABP) may be in trouble because the BJP-led govt has decided to cut off all government advertisements to them.
Some suggest that this is a direct result of the un-favourable & disappointing reports that these brands published against the BJP-led govt & PM Modi before elections.
As a reader, you must understand that the News Media industry, (especially Print Media) thrives on government advertisements (for schemes, Tenders, promotions). For these companies, govt ads may contribute between 15 to 25% of the total advertising revenue – that is highly significant since the average profit margin in the News Media industry ranges between 10 and 15%.
Unless a News media company is backed by other businesses, a block like this can immediately threaten its survival as it may disable the company from earning profits.
Fortunately, these 3 brands account for a total reader base of 2.6 Crore english-publication readers and surely possess the capacity to survive such a storm (as they too have interests in other verticals) and we as fellow media companies hope for the same as the time ahead will be dangerous.
As per the World Press Freedom Index, India is a dangerous place for journalists and media companies as it ranks 140/180 globally.