A lot can be said about the crisis in the press and media. The blame – political or otherwise – can be pointed; newspapers, television, radio and their emergent internet editions can be accused for their bias and attitude, for ideological distortion and an inability to detail the real conditions in Greece and the world.
One can argue with the owners who enjoyed huge profits and didn’t look out for the rainy days, with the “star journalists” who were seduced by the glory of the good old days and cannot face reality; with all those who served and continue to serve without assuming their objective and subjective responsibilities they have, which always exist in failed ventures.
All of the above though are not a solution to the problem that the great financial crisis has caused in the press and media world. The sector of information has been hit the hardest in the Greek economy.
It is the nature of the sector itself that makes the impact of the crisis unique. The advertising and promotions are the first things to go during a recession and times of financial hardship. The flexibility of advertisers and buyers alike is unique.
Since 2008, when the financial crisis first-reared its ugly face, the advertising revenue of television and radio stations has been reduced by 70%! Likewise, the revenue from circulation and sales dropped by 40%.
In the meantime, the ever-deteriorating financial state limited funding options, with the final funding reserves recently ‘tapping out’. At present all media outlets are at the mercy of the banks, the funding and advertising is still under the strict control of the illustrious DGCOM in Brussels, which systematically rejects all relevant funding applications.
Still yet, the once-willing investors turn away whenever they hear about newspapers, magazines, television and radio.
Furthermore, the crisis coincided with a huge technological transition which has brought inexperienced players in the game, domestic and foreign, who without any principles or rules are ransacking a product created by others and abusing their position of authority, by drawing funds from sectors they do not own. Others advertise the stolen goods with irregular bonuses and undeclared employment.
In such a problematic environment, the traditions media businesses either because they did not diagnose the impact of the crisis in time, either because they because they did not consider the upcoming changes enough, or perhaps because their managements remained sluggish and unweildly, full of entanglements and commitments to preserve luxurious organizations with an endless army of employees and expenses. In other words they did not adapt and with the passing of time now face a dramatic cash crunch.
At present the media enterprises in Greece are in trouble. At most newspapers and other media outlets the wages are meager and payment is irregular, some times overdue for many months. Small, medium, large, partisan or not, they all face serious cash flow problems, which are compounded by the limited revenue and lack of new investors.
There are no magic solutions, the media will either limit themselves or they will disappear.
For better or for worse, without a dramatic cut in expenses they have no luck.
The journalists and their unions are obliged to recognize the circumstances.
When the circumstances have been understood the solutions will be found. Otherwise the eradication of the media will be inevitable.
