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.