New landscapes for RI business media

New landscapes for RI business media

The reform era has been an extraordinary machine of change.
Its beginning jolted many people, including those in the mass
media. Many jostled to set up newspapers, tabloids, magazines and
their ilk.

In the past, the Ministry of Information issued about 10
publishing licenses (SIUPP) annually. Today, the number has
increased 20 times, with new print media springing up both in
Jakarta and in the provinces.

Change in the media sector seems to be running against the
current; in the middle of an economic downturn, expectations for
the print media business are on the upswing. The question is
whether market conditions are feasible, and it is something which
needs to be answered by all of those entering the sector.

Clearly, economic and political changes are acknowledged as
extremely influential drivers of change. The indicators are
obvious. Due to the depreciation of the rupiah, consumer spending
power has plummeted and inflation has soared. In an unstable
political situation, many people want to better understand
political machinations. Nobody wants to be left behind in their
knowledge of the "hot" political issues. The politics of permits
also has changed, with some believing that in the future, permits
such as SIUPP will no longer be required.

This situation presents opportunities, and our recent
lifestyle study on the media looks at the indicators. For
instance, Indonesian professionals' viewing habits are
predominantly leaning to political news.

This competitive setting creates a new landscape of
competitors and readership. Longtime players cannot remain
passive in this situation; those with deep pockets are hurrying
to build up infrastructure for long-distance printing. Or they
are using the tactic of "flanking" against competitors with the
potential to steal their market. New players are likely to carve
out a more specific field to ensure they are not involved in
head-to-head competition.

What about consumers? Today, they are more demanding despite
having a more limited budget. But many readers are showing a lack
of loyalty to print media. This means they often choose media
based on their interest in the issues covered, not on any long-
standing relationship.

A benefit of the current situation is the development of
consumers who are shrewder in choosing their media.

So, will this lead to new industry stalwarts or a crop of
impostors? It depends on a stance toward the competitive
landscape. Perhaps some will withstand the changes, but others
will remain a force in name only. Much will depend on aspects
such as creativity in devising a segment and understanding what
readers want.

The same situation is occurring in competition among
television stations. In reality, it is not easy to enter this
arena, which has been hardest hit by the squeeze of the economic
crisis. This field, so heavily dependent on advertising, has
almost been cropped clean by the plunge in ad spending.

Thus, it takes great endeavor to enter this segment, and even
a full pocketbook may seem inadequate. Longtime players and
newcomers alike must be more creative in producing programs which
will appeal to viewers. The target must be clear and the
positioning exact and consistent. It will not be easy for new
stations to wrest honors from two strong TV stations like RCTI
and Indosiar. Both hold a high "share of mind" and "share of
hearts" among Indonesian viewers.

A. Putu Mandau Wijayanto is Marketing Analyst in MarkPlus
Information.