Independent local newspapers that serve grassroots communities can play a pivotal role in fulfilling the promise of a multicultural and democratic society. Because of their ability to impact upon local communities, these papers hold the potential to positively affect the country’s transformation agenda. Above all, in communities without resources, local newspapers are regarded as “bread and butter” news and information sources.
But the challenges facing independent community newspapers have mounted tremendously recently, due to competition from media behemoths and other “special interest” local publications. These new entrants are eroding the traditional advertising base and threatening the ability of the independents to stay afloat.
Managers and editors from three independent newspapers offer some illuminating clues as to how the battle between local titles and media conglomerates to win advertising is played out.
Sonja Smith, a director at People’s Free Press, says Caxton community newspapers have fiercely cut their rates for local advertisers, making it very tough for her title to attract enough spend. Established in 2002, People’s Free Press runs 106,000 copies per week. The paper is distributed to communities in Krugersdorp, Roodepoort, and some areas in the northern suburbs of Johannesburg. Smith says that because of Caxton’s irrevocable move to offer “predatory” low prices to local advertisers, her newspaper has launched a complaint of unfair competition with the Competition Commission, under the Competition Act of 1998.
“We barely survived an onslaught by Caxton,” says Smith. “As a freesheet, our income depends solely on the advertising revenue we get from local advertisers. In order for us to survive, we have to get sufficient advertising so that we can cover the hugely expensive printing costs.”
Another battle for advertising is underway in Grahamstown, between South Africa’s 135-year-old local newspaper Grocott’s Mail and newcomer Shoppa. Louise Vale, general manager at Grocott’s Mail, asserts that the older title is facing stiff advertising competition from Shoppa.
Grocott’s Mail is by all accounts a serious and “fiercely local” newspaper. Its “watchdog” role is evident in its consistent publication of stories that hold those in positions of authority in local government and society accountable to the community for their actions. Vale explains that Grocott’s Mail is trying to create an open media culture, through ensuring a balance in terms of the voices and pictures published in the newspaper. “The aim is to serve all segments of our community, and to reflect the diversity of our society in general,” she says.
Shoppa, on the other hand, is a local freesheet distributed only in the city and targeted mainly at the white market. In terms of content, it runs more advertising features and advertorials than hard-hitting local news.
Vale says that the goal of diversity has not been welcomed in some quarters. “Because we try to include everybody, we’ve been labelled ‘too black and too depressing’. And since we try to play a watchdog role, we’ve been labelled
‘too political’ and ‘too much the Mail & Guardian of Grahamstown’. Some conservative advertisers have cited these reasons and have refused to advertise in our newspaper.”
In the Western Cape, the clout of Independent Newspapers and Media24 is adversely affecting West Xpress, a freesheet with a print run of 27,000 distributed in areas around Maitland, Kensington, Brooklyn, Paarden Eiland, Factreton, Garden Village and Ravensmead.
Says Debbie Hendriks, associate editor of West Xpress: “The Independent group and Media24 give away ads for next to nothing to local advertisers in areas serviced by West Xpress, making it almost impossible for us to compete with their low prices.”
Hendriks says the newspaper has struggled to keep its head above water, due to the escalating costs of producing a newspaper. “Most of the time we had to foot the bill from our own monies, because we don’t have enough advertising revenue to cover the costs.”
But after scooping a runner-up prize in the Sanlam Community Awards for Emerging Publishers in 2004, Hendriks says that a few local businesses began to advertise. “We have now built up a client base of regular and loyal advertisers, but we are still not able to cover our operational costs.”
Big media players are increasingly entering the community newspaper sector, engaged in a process that often subverts the growth potential of the independents.
Recently, media and entertainment giant Johnnic Communications (Johncom) has bought the Port Alfred weekly Talk Of The Town (Tott) for an undisclosed amount. Tott became Johncom’s tenth title in the Eastern Cape, joining the likes of Algoa Sun and Ilizwi (Port Elizabeth), Indabazethu and Go! & Express (East London), The Rep (Queenstown), Our Times (Jeffreys Bay), Wild Coast Herald (Port St Johns), and East Cape Agri Review.
In another move, Caxton are planning to spin out eight new urban community newspapers by the end of 2006. Facing such experienced and cash-rich media giants, it is pointless to ask whether independent local titles are up for the fight. They are quite obviously not.
So, for the moment, the promise of independent local papers is being stifled and silenced, which means fewer opportunities for people at the grassroots level to hear their own voices and to see their own images. The community print sector needs to answer the following questions. Should diversity be a key driver in the growth of the community print media sector? How prepared are local advertisers to support community newspapers that contribute to the South African transformation agenda at the microcosmic level?
Mbuyisi Mgibisa is a recipient of the Steve Biko Memorial Award. He has worked extensively in community media, both in print and broadcast. He is currently studying media management at Sol Plaatje’s Media Leadership Institute at Rhodes University.
“Big Player” Responds
Recognising that further arguments lie behind this important debate, The Media offered the right of reply to some of the big media groups mentioned. David Hill, editor of Cape Community Newspapers (Independent’s community newspaper division), provides the detailed comment below. In light of Hill’s observations on Independent’s provision of funds to the Media Development and Diversity Agency (MDDA), The Media would like to point out that Caxton, Johncom and Media24 are likewise a source of significant contributions to the agency.
“Cape Community Newspapers publishes 14 titles, many of which have been around for more than 20 years – one for more than 50. Our papers are, in fact, well established as part of the social fabric of the communities they serve.
“They are certainly a catalyst for transformation which is not, as Mr Mgibisa seems to imply, the sole preserve of new, small, independent publishers. We take pride in giving the ‘little voices’ their say every week. Each of our titles has its own individual personality and our journalists tend to live in the areas they report on – places like Athlone, Grassy Park, Gugulethu, Khayelitsha and Mitchell’s Plain. In other words, we are in close touch with our communities and that is why our papers are in such demand. We are now bringing accurate, objective and useful information to more than 1,3 million readers each week, many of whom do not buy a daily paper and who rely on us for their local news.
“As far as finances are concerned, sure, we are part of a major media group, but nothing is handed to us on a plate. Advertising is our only source of revenue and we have to toil for our rands. Our success is built on dedication, commitment and sheer hard graft. It is incorrect to describe us as ‘print media giants silencing independent local newspapers by offering drastically reduced advertising rates’. The associate editor of West Xpress (if she has been quoted correctly) is barking up the wrong tree. Our papers are not even distributed in the area covered by her publication so she can hardly blame Independent if business is tough.
“Nor have we cut our advertising rates — in fact they were subject to an annual increase from January 1. Anyway, rate-cut wars are not our style. We value our papers, believing they are worth advertising in; we’re not prepared to sell ourselves cheaply.
“So, that’s the Western Cape picture. As far as the wider group is concerned, Mr Mgibisa needs to know that Independent is one of five founding newspaper funders of the Media Development and Diversity Agency which, as its name implies, promotes media development and diversity. Our commitment to the MDDA runs to R6-million. Among other things, the MDDA gives grants to fledgeling publishers (the West Xpress has been a beneficiary of this).
“For the record, we declined membership of the Independent Publishers Association as we wanted to ensure that the voice of the smaller publications were not drowned out by the bigger groups.
“To sum up: our philosophy is live and let live. We’re not out to ‘kill’ anybody and we don’t indulge in dirty tricks. We respect the right of fellow journalists and new publishers to earn a living — just like we do. We will continue to concentrate our efforts on publishing excellence. Ultimately, the market will decide who flourishes.”