Finding solutions to diversify revenue sources for press agencies

Visitors visit and experience the exhibition booth of Voice of Vietnam (VOV). (Photo: Thu Huong/VNA) — Visitors visit and experience the exhibition booth of Voice of Vietnam (VOV)

On March 16, the Discussion Session “Diversifying Revenue Sources for Press Agencies” took place in Ho Chi Minh City. This is an event within the framework of the 2024 National Press Festival.

At the discussion session, Deputy Minister of Information and Communications Nguyen Thanh Lam said that press revenue is posing many challenges for press agencies today.

If they only rely on advertising, press agencies will always face the risk of declining revenue, in a context where many ways to find customers no longer have to go through press agencies.

Businesses have been looking for other effective ways to promote their products and sell their products. In addition, news sites and social networking sites that intentionally take selective content from press agencies also attract advertising revenue, making the economic pie for press agencies increasingly smaller.

According to Deputy Minister Nguyen Thanh Lam, in recent times, businesses have been looking for more effective ways to promote their products and sell their goods. Therefore, press agencies also need to approach other avenues to find sources of revenue.

Based on research data, Mr. Nguyen Quang Dong, Director of the Institute for Policy Studies and Media Development (IPS), said that there are currently 5 main sources of revenue for press agencies, including: advertising on printed newspapers; budget from the state, the governing agency; revenue from printing newspapers; media contracts, sponsored content, affiliate marketing; electronic advertising. In particular, diversifying revenue sources is facing many difficulties. Therefore, revenue from readers is still a long way off.

According to the survey results, 7 surveyed press agencies have revenue from readers; 5 press agencies have reader revenue that only accounts for a very small, insignificant part of editorial revenue; 56.5% of press agencies that have not yet charged readers for reading electronic newspapers have no plans to implement this form in the next 3 years.

Besides, popular forms of reader fees have appeared, typically the Lao Dong Newspaper implementing a subscription package for VIP readers.

Mr. Nguyen Quang Dong also pointed out the difficulties in implementing reader fees, that is, readers only pay to read an online newspaper; awareness of the importance of reader data is still limited, leading to the application of data to understand and serve reader needs is not popular.

However, press agencies cannot charge fees without understanding reader behavior. Because of this lack of understanding, there is a gap between the amount of content published and the needs of readers.

Proposing a long-term direction for the press economy, Mr. Nguyen Quang Dong said that in the coming time, the Ministry of Information and Communications needs to propose that Government leaders provide more support for press agencies.

Including VAT exemption for all press products; simplifying administrative procedures with policy communication packages; facilitating the implementation of the task of controlling user interactions on social networking platforms.

In the long term, it is necessary to promote socialization to increase investment in technology and business capacity for press agencies; support press agencies to increase their presence and business cooperation with social networking platforms through the "bridge" role of the Ministry of Information and Communications...

As one of the press agencies with the top revenue sources in the country, Mr. Le Thanh Tuan, Director of Vinh Long Provincial Radio and Television Station, said that there are two main sources of revenue, including advertising and propaganda activities, mainly to support the production of documentary films for departments and branches in the province and video clips introducing businesses. Of which, advertising accounts for 90% of the total revenue of the Station.

Besides, radio advertising is a form of advertising that has attracted the attention of many businesses in the years 2000-2010, with many forms such as spot advertising interspersed with live radio programs such as music, news... or sponsorship through health consulting programs, education consulting, enrollment consulting...

Currently, this source of revenue still has a certain role and radio is still an advertising channel with potential for development.

According to Mr. Le Thanh Tuan, to generate revenue on radio, Vinh Long Provincial Radio and Television Station has conducted many live and livestream programs, early news bulletins to quickly inform about recent events in an effort to reach and attract the public on many different platforms on cyberspace.

For television advertising, since 2014, the unit has also begun to carry out program production cooperation activities.

On average, each year, the joint station produces 40-50 programs, diverse in genres from reality TV shows, game shows to short films, children's films and science programs...

As for revenue on digital platforms, based on the reality of the shift of advertising from traditional newspapers to digital platforms and social networks, the Station has gradually expanded the distribution of multi-platform, multimedia content, making efforts to exploit social networks to bring content to the audience with 48 YouTube channels, 23 Facebook Fanpages, 4 Tiktok channels, 6 Myclip channels, 5 Dailymotion channels...

TH (according to Vietnam+)

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