Hormusji N Cama: You can take a newspaper to bed with you

Bhavana Puljal - Televisionpoint.com | Mumbai

Hormusji N Cama

In the age of 24x7 television news channels, the print media still scores a upper hand. You can take a newspaper or a magazine to bed with you. However, with the electronic media getting shriller, the bedroom is one place, where the print media comes into its own, according to Hormusji N Cama, director, Bombay Samachar and president of Indian Newspaper Society (INS).

Cama opines that one can park one's head on the pillow and peruse at leisure one's favourite reading material. The print media is not intrusive, whereas the television channels demand your undivided attention. Getting away from it all can today mean distancing yourself not just from the office routine but the idiot box, he says.

In the 19th century, Karl Marx defined religion as the opium of the people. Today, it is television which has become the opium of the masses. So much so that the 20th century humorist Marx - Groucho not Karl - once said that "I find television very educational. Every time someone switches it on, I go into another room and read a good book."

Moving to the print media in-depth, Cama says the Indian Readership Survey (IRS) and the National Readership Study (NRS) decision to create a single research for the industry, is a welcome move. "Both the MRUC and NRSC have agreed on the merger, but only time will tell whether the industry will succeed in having a single robust readership survey." he says.

The Indian print media industry has grown at a 14 per cent over the last four years. However, in 2008, the economic slowdown resulted in the Indian print media industry to grow only 7.5 per cent over the previous year.

Cama says the slowdown has affected the entire world, although the downtrend did not initially seem as severe in India. He says, "There is no getting away from the fact that advertising spend has come down by 15-20 per cent both in print and other media."

Newsprint prices, which typically account for 45-50 per cent of production costs, rose over 60 per cent over a period of six months, hitting margins of the players very badly. In 2008, newsprint prices hit the roof and the larger publications were the hardest hit.

In his Budget 2009, Finance Minister Pranab Mukherjee extended the economic stimulus package for the print media by six months till December 31, 2009. Cama says, "We are thankful to the government for acceding to our request to remove customs duty on newsprint, which was a positive relief."

"We are grateful that the government increased the DAVP rate ad-hoc and put in place a Rate Structure Committee to come out with revised rates that are in keeping with times." he says.

The industry has an long standing desire from the government about the abolition of the Wage Board. "Smaller publications have lower costs, especially in newsprint, but it is the mid-level players, who have been really hit hard, because of production costs, but also for the governments move for a new Wage Board." he says.

According to Cama, downsizing in print media is not an issue. "It is a fact that certain publications shut some editions, but this was perhaps because they had to had a rethink on their business plans in the current environment. I am confident that by 2011, print media will once again see an upward graph." he says.

Print media companies have also started diversifying their revenue streams and are entering related business sectors to offset lower margins. "We have seen a large number of success stories across print media houses, which also diversified into other media and yes, this is the future." he adds.

The government has also proposed raising the FDI limit in print to 49 per cent. Cama says the proposal is welcome move as it will not only ensure a steady flow of working capital, but also modern technology, leading to greater productivity.