An Analysis of the Effects of Online Publications on the Revenue and Employment Levels of the Punch and Thisday Newspapers in Nigeria
CHAPTER ONE
Objectives of the Study
The main objective of this study is:
- To determine the effects of online publishing on the sales and revenue (profitability) of The Punch and ThisDay newspapers in Nigeria.
Other specific objectives are:
- To determine the effects of online publishing on the employment levels of The Punch and ThisDay newspapers in Nigeria.
- To determine the effects of online publishing on the capital investment of The Punch and ThisDay newspapers in Nigeria.
- To determine the effects of online publishing on the technical and productive efficiency of The Punch and ThisDay newspapers in Nigeria.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
This chapter looks into the views and opinions of other authors and researchers whose works were written prior to this study, to see what they have recorded regarding the effects of online publishing on the revenues of newspapers. It is divided into three sections; conceptual literature, theoretical framework and empirical studies.
The section on conceptual literature examines effects, online publishing, employment, survival, and newspaper and the society. Theoretical framework examines the Agenda-Setting Theory of the press, uses and gratification theory, social responsibility theory of the media and the magic-bullet or hypodermic theory of the press and the theory of underdevelopment. The empirical studies examine earlier research works carried out on online publishing as they relate to nature of today’s journalism. The literature reviewed is summarized and the gaps identified. The relevance of the present study and the gaps it seeks to fill are made clear.
Conceptual Literature
Under this section, the researcher discussed some concepts in the research topic. The concepts are: effects, online publishing, employment, and newspaper and the society.
The Concept of Effects
Effects mean utterances, consequences or changes that occur when something is done or when something happens and can either be negative or positive (Alfred, 2005). In the light of this, when we talk about the effect of online publishing on the revenues of The Punch and ThisDay Nigerian newspapers, we are therefore talking about the utterances, consequences or changes that occur to the revenues of the newspapers as a result of the introduction of online publishing by these newspapers in January, 2005.
The Concept of Online Publishing
Online publishing which is also referred to as e-publishing or electronic publishing has to do with the digital publication of e-books, digital magazines and the development of digital libraries and catalogues. Electronic publishing has become common in Nigeria, especially in scientific publishing where it has been argued that peer-reviewed scientific journals are in the process of being replaced by electronic publishing (Sheminenge, 2007). It is also becoming common to distribute books, magazines, and newspapers to consumers through tablet reading devices, a market that is growing by millions each year, generated by online vendors such as Apple’s iTunes bookstore, Amazon’s bookstore for Kindle, and books in the Android Market (David, 2009).
Ezinwa, (2006) posits that, distribution of publications through the internet is nowadays faster and easier. It is strongly associated with electronic publishing, there are many non network electronic publications such as Encyclopedias on compact disks (CD) as well as technical and reference publications relied on by mobile users and others without reliable and high speed access to a network. Electronic publishing is also being used in the field of test-preparation in developed as well as in developing economies for student education (thus partly replacing conventional books) because it enables content and analytics combined – for the benefit of students.
David, (2009) recounts that, online publishing is increasingly becoming more popular as says go by because it has been able to provide quick gratification for readers, especially with books that customers might not be able to find in standard book retailers. Studies shows that even as the term electronic publishing is primarily used today to refer to the current ways and processes of online and web-based publishing, the term has a history of being used to describe the development of new forms of production, distribution, and user interaction in regard to computer-based production of text and other interactive media. The electronic publishing process follows a traditional publishing process that differs from traditional publishing in two ways. Firstly, it does not include using an offset printing press to print the final product. Secondly, it minimizes the physical distribution of product.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter deals with the research methodology. It describes research design, area of study, data collection and method of data analysis.
Area of Study
This study looks at the sales, revenue and employment records of The Punch and ThisDay newspapers in Nigeria from 1997 to 2013. It also looks at the changes, if any, in the advert rates of these two newspapers as well as their cover prices in the last decade, to see if online publishing has affected them in any way since it was introduced in January, 2005. In the light of this, the study mainly made use of secondary data.
The Federal Republic of Nigeria is a West African country with 36 states, having a population believed to be around 160 million people. The country covers an area land mass of about 923,768 square kilometers and shares borders with Benin, Chad, Cameroon and Niger Republic. It has three major ethnic groups which are Igbo, Hausa and Yoruba and more than five hundred minor ethnic groups. It is the most populous country in Africa and the seventh most populous country in the world.
The Research Design
Survey research method was used in this study. This is because the study gathered and analyzed the compilations and/or the sales, revenue and employment records of ThisDay and The Punch newspapers as well as other relevant documents obtained from these newspapers over a period of time, using time series analysis as the method of data collection. The researcher analyzed the sales, revenue and employment records of these two newspapers from 1997 to 2013, i.e. eight years before they introduced online publishing in January, 2005 and eight years after. In other words, the study measured what is called before and after effects.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
In this chapter, the researcher analysed and presented data so as to provide answers to the respective research questions posed in chapter one of the study. Data analysis here refers to the sorting, categorization and interpretation, i.e. drawing of inferences from the gathered relevant data used in this study. Asika (2004) explains this concept as, those techniques that enable a researcher to make summary description of the subject from the data by systematically extracting information that was not apparently there before. In essence, data analysis interprets using the available to find the unavailable.
Before and After Effects for Sales and Revenue (Profitability)
The first objective of the study was to find the effects of online publishing on the sales and revenues of The Punch and ThisDay newspapers in Nigeria. To achieve this, a research question was posed thus: What are the effects of online publishing on the sales and revenues (profitability) of The Punch and ThisDay newspapers in Nigeria? This question is key because as firms embrace the internet and consequently acquire more technologies, it is expected that the profitability level would increase (Reid, 2001, Kikeris, Nellis and Shirley 1992 quoted in Amakom, 2003 and Thomas 2004) through increase in sales and revenue. In 2005, The Punch and ThisDay newspapers among others, introduced online publishing, embracing the internet and acquiring more technologies.
CHAPTER FIVE
DISCUSSION OF FINDINGS AND RESULTS
The Findings of the Study
This study x-rayed the effects of online publishing on the sales, revenue, employment, capital investment as well as operational (productive) and technical efficiency of The Punch and ThisDay newspapers in Nigeria. In this regard, four research questions were posed to guide the study and make findings. These research questions are: What are the effects of online publishing on the sales and revenues of The Punch and ThisDay newspapers in Nigeria? What are the effects of online publishing on the employment level of The Punch and ThisDay newspapers in Nigeria? What are the effects of online publishing on capital investment level of The Punch and ThisDay newspapers in Nigeria? And lastly, what are the effects of online publishing on the technical and productive (operational) efficiency of The Punch and ThisDay newspapers in Nigeria?
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary
The profitability of Nigerian newspapers have seen some increase since the coming of online publishing in 2005 even though not as much as expected. It could be seen from the result that these newspapers recorded higher sales before the introduction of online publishing than they recorded after the introduction of online publishing. When broken into months, the worst decrease in the sales outputs of these Nigerian newspapers came in February 2005 when the practice of online publishing first emerged in the country. The second in June 2006 and the third worst decrease in sales came in June 2008.
The findings of this study have shown that the effects of online publishing on the technical efficiency of Nigerian newspapers is very negative and would liquidate the industry if something is not done fast. One of the foreseeable solutions to the challenges posed by online publishing on profitability and technical efficiency of newspapers is the introduction of the Digital Subscription Model (DSM) which ensure that every online reader pays a certain fee before access to online publications be given to him.
Another solution widely prescribed by researchers (Franklin, 2003; Creeber and Martin, 2009; Tsav, 2011; Ajimobi, 2011; Thijs and Arvid, 2012, Obasi, 2014; and Taylor, 2014) is the reduction in the prices of these newspapers. However, even as the sales outputs of The Punch and ThisDay newspapers decreased, the publishers of these newspapers, among others, have continued to increase the cover prices of the papers, hence forcing the sales of these newspapers to suffer more and more deceases. It is understood that this may be as a result of high production costs. Uniformly, the prices of Nigerian newspapers have seen some significant increase for three consecutive times since the coming of online publishing in 2005. The first price increase came in February, 2005, the second in June, 2006 and the latest price increase in June, 2008. Expectedly, each time the price of these newspapers increased, the quantity demanded of them decreased as well.
Conclusion
In the face of the findings of this study so far, the study conclusively lay down these facts; online publishing has little positive effects on profitability of Nigerian newspapers. In Nigeria, with the introduction of online publishing practices in 2005, sales and revenues are not as rosy as thought and might likely worsen if these newspapers channel more of their adverts to the online versions. This is because a greater number of readers now resort to free online publications instead of purchasing hardcopies of the newspapers and readers are not charged for online publications. The study also revealed that online publishing has some mixed effects on the technical and productive (operational) efficiency of Nigerian newspaper with productive efficiency positive and technical efficiency negative.
The mode of operation of publishing houses has been affected as well, though positively. The way and manner news are gathered, recorded and distributed have changed to a large extent. News gathering and reporting are faster in online publishing than it is in hardcopy publication. The time of editing can is not same in both the online and print journalism. Many online publishers, sometimes while braking news chose to post the write-up online and then edit it as time goes on, probably as news updates are brought in.
Limitations of the Study
This study and its findings are limited to affirmations of newspaper publishing enterprises in Nigeria: The Punch and ThisDay newspapers. In the same vein, the study is purely based on the data available to the researcher and therefore, could not cover areas other than stated above.
Recommendations
After carefully gathering, analyzing and interpreting the relevant data, these recommendations are therefore made by the researcher;
- Online publications should be made to serve as intro to the main publications which should be published in the hardcopies of these newspapers. This will attract more readers to the print versions of the newspapers, and will therefore, increase the revenues of them.
- The lower the price, the higher the demand, the theory of demand and supply says. In the view of this, Nigerian newspapers should also consider exploring reducing the prices of these newspapers, to enable them attract more readers.
- The strategies and operations of the online advertising should be restructured to increase income of Nigerian newspapers.
- Newspapers should introduce Digital Subscription Model (DSM) for their online version, where, upon payment of the subscription fee, passwords are given to the subscribers to enable them access the websites. This will definitely increase the income of The Punch and ThisDay
- There should be a “bail out” attempt from the government. Government should fund theses newspapers. Critics argue that these will make these newspapers pro-government in their publication, but the researcher believes that it is better for the publishing companies to be pro-government in their publications and survive this trend than to watch the companies liquidate as a result of poor funding.
Suggestions for Further Study
When a particular research problem is solved, its report automatically becomes a fresh research problem. After making the findings as seen earlier, the researcher therefore suggests that more studies be carried out in these areas:
- The effects of online publishing on the behavioral and attitudinal change of Nigerians news consumers.
- Online publishing in Nigeria: problems and prospects.
- The role of online publishing on the repositioning of image perception of Nigeria nation at both domestic and international levels.
- The efficacy of online publishing in the fight against information imbalance among the countries of the world.
REFERENCES
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- Alfred, F., 2005. The Effects of Online Publishing on Media Objectivity in Nigeria. Ibadan: Dempsey Publications.
- Ali S., et al. 2011. The Impact of New Media on Traditional Mainstream Mass Media. The Public Sector Innovation Journal, Vol. 16(3), article 7, pg 98.
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