 "Print media hit by financial problems: RS member demands govt intervention")
The financial problems faced by the print media industry were on Friday flagged in the Rajya Sabha with a demand that the government should address the matter by reviewing its advertisement rates which have been stagnant since October 2010.
Raising the isssue during Zero Hour, Janata Dal-United (JD-U) member Harivansh said the industry was facing financial constraints due to the emergence of social media, wage board recommendations, cost of newsprint, rising prices of other inputs and impact of demonetisation.
Harivansh, with whom a number of other members associated on the issue, said the print media is in danger as closure of newspaper editions and retrenchment is being witnessed in the sector.
Harivansh said the print media is in trouble mainly due to two reasons. First is the changing times, meaning emergence of new forms of media, like social media, TV, internet, Facebook and FM radio.
The other is systemic where the government can take initiatives to correct the situation, he said.
He said the burden of Wage Board recommendations has also impacted the industry along with tax rates proposed in the Goods and Services Tax (GST), continuous rise in the cost of newsprint and increasing price of other inputs.
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"Newspaper industry is saying that demonetisation has affected their advertisement (business)," Harivansh added.
"I urge the government to immediately take initiatives in this regard because it would become difficult once the situation slips out of hand," he said.
Noting that the government has promised two crore jobs annually, the JD(U) member asserted that new jobs are not being created.
"Retrenchment is taking place in print media. Editions are being closed down," he said and added that the small and medium newspapers have been affected the most.
"Government should take initiatives to save lakhs of jobs in the print media sector," he said.
Harivansh said the newspapers were dependent on advertisements and the growth in advertisement revenue is static at 4-6 per cent for last many years.
Citing example of a leading newspaper, he said post implementation of wage board recommendations, its pre-tax loss (2013/14 - 2014/15) increased significantly. Also, staff cost of Press Trust of India increased by 174 per cent in 2013-14.
Other newspapers are also facing a similar situation, he added.
He also underlined that if the credibility of the print media has to be preserved and 'paid news' avoided, their financial system needs to be strengthened.
Harivansh said DAVP rates have not been changed since October 2010 and asked the government to immediately revise it and take other steps to help the print media.