Ravindra Kumar, Editor & MD, The Statesman
The media planners sitting in Ivory towers need to urgently take heed of the strategies and methods used by newspapers in their distribution. They need to question and take a fresh look at the numbers on the basis of which they spend crores of rupees. It's time they understood market dynamics and realities.
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Published: Sep 13, 2003 12:00 AM | 8 min read
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The media planners sitting in Ivory towers need to urgently take heed of the strategies and methods used by newspapers in their distribution. They need to question and take a fresh look at the numbers on the basis of which they spend crores of rupees. It's time they understood market dynamics and realities.
In a candid interview with exchange4media's Kolkata Bureau, Ravindra Kumar, the Editor and Managing Director of The Statesman, discusses the media practices in Kolkata, widely practiced 'briefcase operations' of Kolkata and issues concerning newspapers.
Kumar has been with The Statesman for 23 years. His journey in The Statesman included being a foreign correspondent in Singapore to doing investigative journalism out of New Delhi. In 1994, he was appointed Managing Editor and was promoted to his present position in 2003 Q. On the ideal newspaper An ideal newspaper is one that will accept its mistakes, not get swayed by anyone and will report the truth as it sees it.
Q. On the future plans of The Statesman We launched in Siliguri five years ago, and in Bhubaneswar a few months ago. More such initiatives are planned. We also have some plans for the Delhi market. We know we are never going to post a 180 crore profit but we will survive with dignity and honour.
Q. On The Statesman's legacy The oldest newspaper in the country, started in 1875, The Statesman is now 128 years old. The Statesman incorporates and is descended from "The Friend of India" which had started in 1818. Therefore, if we consider this period also, then the Statesman is 185 years old. A group of public trusts and its employees, including senior journalists, own the paper. This keeps the editorial content and policies free from any interference. We keep our distance from all political parties, and prefer to play the role of a watchdog, even at the risk of being labeled anti-establishment.
Q. On the performance so far The Statesman has shown growth over the years. Over a period of 8-9 years, we have grown on an average of 2-3% per annum. In fact, this is the realistic growth pattern a media planner ought to expect from a newspaper. When does a newspaper grow? It grows in two circumstances. One when the market expands, which is through an increase in the population or in the literacy level. The other option is when you takeover someone else's share in the market. Neither demographics nor literacy levels justify the 400%-500% growth that Hindustan Times and The Times of India have recorded in Delhi over the past 8-9 years. Such growth must be viewed with skepticism, if not suspicion.
Q. On the comparison between The Statesman and ABP There is no comparison between The Statesman and ABP. ABP is much younger and is basically a language newspaper. The cultures are different. The Statesman is associated with a degree of elitism, something ABP can never hope to achieve. The ownership patterns of the two papers also differ. The Statesman in an institution where the primary objective is to ensure the independence and integrity of the paper whereas ABP is profit driven. For this reason, ABP is more market-savvy, but it does not and cannot have the credibility that The Statesman has.
Q. On the phase when The Telegraph took over The Statesman The Telegraph was indulging in a lot of acrimonious advertising against The Statesman. In fact I have my doubts that The Telegraph has taken over The Statesman's readers. The two newspapers have different kinds of readers. In any case, The Statesman scores very high on editorial content. Any reader will vouch for that. The Telegraph is popular in the younger age groups but when people mature, by the time they are in their late 20s or early 30s, and news starts affecting them, they grow out of the need for tabloid-style presentation. With so many news channels flooding the market, good newspapers will depend not so much on breaking news but on the content and quality of news analysis.
Q. On Kolkata's advertising market Research tells us that it terms of availability of money, number of people in higher SEC and number of people in higher income groups, Kolkata is a bigger market than Madras, Hyderabad and Bangalore put together. Then why does Kolkata not attract advertising? The reason is that the cost of media is very high in Kolkata. Kolkata media market depends largely on PR and not on numbers. If it were numbers dependant, people would tell publications that they are over priced. The market leader has set a wrong precedent. This is why inspite of having money, Kolkata is not able to give the advertiser the same returns on every rupee spent that other markets do. There is a practice of "briefcase operations" as the advertiser in Kolkata is very money minded. The advertiser refuses to accept the 15% that the agency gets. Therefore, the agencies are asked to pass on 13%-14% to the advertiser. In turn the agencies to survive, ask publications to give them over riding commissions. Publications, and especially the market leader, pad the price, and give these commissions. Thus it is a combination of reasons - the attitude of the local advertiser and the pricing policy of the market leader - that has destroyed the Kolkata advertising market. Where Times of India is concerned, they give discounts in the form of add-ons. They are creating a monopolistic situation by blocking the market. They don't care about the rate, they only want the lion's share of spends. This unhealthy trend will kill the press in India. And if the press as an institution in India dies, the blame will lie at the door of Bennett, Coleman & Co. Ltd.
Q. On The Statesman's stand on the problems We have taken a pro-active approach. We have done everything to educate ABC, the advertisers and research agencies. I have personally argued, railed, and written extensively to ABC to curb these malpractices. I have written several articles on this subject over the years, essentially to try and force readers and advertisers to think about the problem.
Q. On the performance of Siliguri edition At the time of its inception, the public utilities and infrastructure of Siliguri and neighboring areas were in a shambles. We started printing not only our paper but also assisted the launch of Bartaman, Anandabazar Patrika and Aajkal. Soon some of these publications set up their own units. With 8 newspapers in the market and very little to report except about the infrastructure, we forced the government to act. The Statesman thus played the role of a catalyst in north Bengal. In even the five years that we have been around, there has been a huge change in the quality of infrastructure available. Today, the airport is among the best in the country, Siliguri has a modern bus terminus, the toy train to Darjeeling has got a fresh lease of life and some of the roads are of a very good quality.
Q. On media practices in Kolkata There are quite a few issues that I would like to mention here. They are as follows: Circulation figures are misrepresented: The validity of the circulation figures is highly doubtful, as the return from the cover price of the daily was equal to or lesser than its value in waste. If copies are sold in waste, this will result in a misrepresentation of circulation figures and most importantly a waste of the advertisers' money. ABC has taken some steps to correct this but it has moved very sluggishly so far. Readership survey: ABC (Audit Bureau of Circulation) along with INS (Indian Newspapers Society) and AAAI (Advertising Agencies Association of India) conducts NRS (National Readership Survey). The Statesman has taken the decision to pull out of NRS as its functioning is dominated far too much by publishers. The users of research and not beneficiaries of the research should conduct the survey. Moreover as ABC is a part owner, there is bound to be an unspoken pressure on NRS to validate ABC's findings and vice versa. Dual pricing of Times of India: The Times of India has broken up its cover price into Re 1 for the main edition and Re 0.50 for the supplement called Kolkata Times. In this scenario, if a person wants only one of these, that option should be available. However, hawkers tell us they are not being allowed to take more copies of one than the other. Why Times of India is practicing this is a valid question. It can't entirely be a coincidence that the raddi value of the main paper is higher than the return that the company gets from genuine sale, which is 70 paise per copy on a cover price of Re 1. It is the publisher's responsibility to ensure that it reaches genuine readers, and that is his sacred covenant with the advertiser. If the publisher takes a step that wittingly or unwittingly results in the newspaper being sold in the raddi market before it has been read, he has broken that sacred covenant.
Q. On the future plans of The Statesman We launched in Siliguri five years ago, and in Bhubaneswar a few months ago. More such initiatives are planned. We also have some plans for the Delhi market. We know we are never going to post a 180 crore profit but we will survive with dignity and honour.
Q. On The Statesman's legacy The oldest newspaper in the country, started in 1875, The Statesman is now 128 years old. The Statesman incorporates and is descended from "The Friend of India" which had started in 1818. Therefore, if we consider this period also, then the Statesman is 185 years old. A group of public trusts and its employees, including senior journalists, own the paper. This keeps the editorial content and policies free from any interference. We keep our distance from all political parties, and prefer to play the role of a watchdog, even at the risk of being labeled anti-establishment.
Q. On the performance so far The Statesman has shown growth over the years. Over a period of 8-9 years, we have grown on an average of 2-3% per annum. In fact, this is the realistic growth pattern a media planner ought to expect from a newspaper. When does a newspaper grow? It grows in two circumstances. One when the market expands, which is through an increase in the population or in the literacy level. The other option is when you takeover someone else's share in the market. Neither demographics nor literacy levels justify the 400%-500% growth that Hindustan Times and The Times of India have recorded in Delhi over the past 8-9 years. Such growth must be viewed with skepticism, if not suspicion.
Q. On the comparison between The Statesman and ABP There is no comparison between The Statesman and ABP. ABP is much younger and is basically a language newspaper. The cultures are different. The Statesman is associated with a degree of elitism, something ABP can never hope to achieve. The ownership patterns of the two papers also differ. The Statesman in an institution where the primary objective is to ensure the independence and integrity of the paper whereas ABP is profit driven. For this reason, ABP is more market-savvy, but it does not and cannot have the credibility that The Statesman has.
Q. On the phase when The Telegraph took over The Statesman The Telegraph was indulging in a lot of acrimonious advertising against The Statesman. In fact I have my doubts that The Telegraph has taken over The Statesman's readers. The two newspapers have different kinds of readers. In any case, The Statesman scores very high on editorial content. Any reader will vouch for that. The Telegraph is popular in the younger age groups but when people mature, by the time they are in their late 20s or early 30s, and news starts affecting them, they grow out of the need for tabloid-style presentation. With so many news channels flooding the market, good newspapers will depend not so much on breaking news but on the content and quality of news analysis.
Q. On Kolkata's advertising market Research tells us that it terms of availability of money, number of people in higher SEC and number of people in higher income groups, Kolkata is a bigger market than Madras, Hyderabad and Bangalore put together. Then why does Kolkata not attract advertising? The reason is that the cost of media is very high in Kolkata. Kolkata media market depends largely on PR and not on numbers. If it were numbers dependant, people would tell publications that they are over priced. The market leader has set a wrong precedent. This is why inspite of having money, Kolkata is not able to give the advertiser the same returns on every rupee spent that other markets do. There is a practice of "briefcase operations" as the advertiser in Kolkata is very money minded. The advertiser refuses to accept the 15% that the agency gets. Therefore, the agencies are asked to pass on 13%-14% to the advertiser. In turn the agencies to survive, ask publications to give them over riding commissions. Publications, and especially the market leader, pad the price, and give these commissions. Thus it is a combination of reasons - the attitude of the local advertiser and the pricing policy of the market leader - that has destroyed the Kolkata advertising market. Where Times of India is concerned, they give discounts in the form of add-ons. They are creating a monopolistic situation by blocking the market. They don't care about the rate, they only want the lion's share of spends. This unhealthy trend will kill the press in India. And if the press as an institution in India dies, the blame will lie at the door of Bennett, Coleman & Co. Ltd.
Q. On The Statesman's stand on the problems We have taken a pro-active approach. We have done everything to educate ABC, the advertisers and research agencies. I have personally argued, railed, and written extensively to ABC to curb these malpractices. I have written several articles on this subject over the years, essentially to try and force readers and advertisers to think about the problem.
Q. On the performance of Siliguri edition At the time of its inception, the public utilities and infrastructure of Siliguri and neighboring areas were in a shambles. We started printing not only our paper but also assisted the launch of Bartaman, Anandabazar Patrika and Aajkal. Soon some of these publications set up their own units. With 8 newspapers in the market and very little to report except about the infrastructure, we forced the government to act. The Statesman thus played the role of a catalyst in north Bengal. In even the five years that we have been around, there has been a huge change in the quality of infrastructure available. Today, the airport is among the best in the country, Siliguri has a modern bus terminus, the toy train to Darjeeling has got a fresh lease of life and some of the roads are of a very good quality.
Q. On media practices in Kolkata There are quite a few issues that I would like to mention here. They are as follows: Circulation figures are misrepresented: The validity of the circulation figures is highly doubtful, as the return from the cover price of the daily was equal to or lesser than its value in waste. If copies are sold in waste, this will result in a misrepresentation of circulation figures and most importantly a waste of the advertisers' money. ABC has taken some steps to correct this but it has moved very sluggishly so far. Readership survey: ABC (Audit Bureau of Circulation) along with INS (Indian Newspapers Society) and AAAI (Advertising Agencies Association of India) conducts NRS (National Readership Survey). The Statesman has taken the decision to pull out of NRS as its functioning is dominated far too much by publishers. The users of research and not beneficiaries of the research should conduct the survey. Moreover as ABC is a part owner, there is bound to be an unspoken pressure on NRS to validate ABC's findings and vice versa. Dual pricing of Times of India: The Times of India has broken up its cover price into Re 1 for the main edition and Re 0.50 for the supplement called Kolkata Times. In this scenario, if a person wants only one of these, that option should be available. However, hawkers tell us they are not being allowed to take more copies of one than the other. Why Times of India is practicing this is a valid question. It can't entirely be a coincidence that the raddi value of the main paper is higher than the return that the company gets from genuine sale, which is 70 paise per copy on a cover price of Re 1. It is the publisher's responsibility to ensure that it reaches genuine readers, and that is his sacred covenant with the advertiser. If the publisher takes a step that wittingly or unwittingly results in the newspaper being sold in the raddi market before it has been read, he has broken that sacred covenant.
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