Adoi Media Analysis: TV More Resilient Than Print, But Will They Overtake Print?

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Print players in Malaysia are forced to seek new revenue streams with never ending increases in the price of newsprint. Coupled with declining readership is making television a better option for advertisers, if print ad prices keep going up. Newsprint prices have risen to RM3,123 a ton of late. Television players are not bogged down by such uncertainties, having a safe fixed-cost operations model in place. Furthermore, magazines have registered negative growth in advertising expenditure (adex) for the first half of this year.

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According to a new Adoi Media Analysis, print players in Malaysia are forced to seek new revenue streams with never ending increases in the price of newsprint. Coupled with declining readership, this is making television a better option for advertisers, if print ad prices keep going up. Newsprint prices have risen to RM3,123 a ton of late. Television players are not bogged down by such uncertainties, having a safe fixed-cost operations model in place. Furthermore, magazines have registered negative growth in advertising expenditure (adex) for the first half of this year.

However, both media are affected by online growth, especially among the younger set who now spend up to four hours a day online. While most print and television players have also taken their offerings online, very few have successfully monetised these efforts.

In Malaysia, print advertising outspends television, which is a rarity since in most markets the trend is otherwise. Media pundits have been watching this 'imbalance' closely in recent years, and it remains to be seen if the day will come when TV outpaces print in ad spend.

In any analysis, we also have to take into account that politics and media have been in crossfire of a national scale recently. Sin Chew Daily reporter, Tan Hoon Cheng, was arrested under the Internal Security Act and released 18 hours later (the first time a media reporter has been arrested under ISA), according to http://mt.m2day.org/2008/content/view/12607/84/. Three national newspapers, theSun, Suara Keadilan and Sin Chew Daily have been given show cause letters for 'manipulating' the news, according to http://mt.m2day.org/2008/content/view/12604/84/, so it's anybody's guess if these titles will be closed down.

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