APAC publishers bullish but concerned about misinformation: SOPA

A new study commissioned by The Society of Publishers in Asia (SOPA), supported by the Google News Initiative and Economist Impact, highlights the critical need for the Asia-Pacific's news media industry to innovate via technological investments and new business models.

The research reflects the challenges and opportunities within the region's news media landscape, and how organisations are rethinking business models as consumer demands evolve. It has insights from consumers, 500 industry, government and NGO executives, including 150 media and publishing executives in the region. 

Key findings

Amid the COVID-19 pandemic and an evolving business landscape driven by digitalisation, the role of reliable news in enabling the Asia-Pacific's societies to function remains more critical than ever.

The report finds strong demand for news media in Asia Pacific, reflecting the bullish sentiment shared by 82% of surveyed executives who believe in sustainable industry profitability, just as 83% of media and publishing executives expect healthy demand growth. Yet many executives also think that converting the region's inherent market value into revenue will be challenging.

On top of that, misinformation has become a chief concern among the market stakeholders, expressed by 76% of consumers, whereas 81% of executives believe that misinformation can seriously threaten the news media industry's long-term sustainability.

"Societies depend heavily on the veracity and accessibility of news to function efficiently. Significant change is happening – socially, economically, and technologically–so regional news media stakeholders must adapt to maintain their industry's sustainability. Through this report, we hope to provide industry executives and investors, as well as policymakers, the insights needed to build a stronger and lasting news media ecosystem, as it will continue to keep people informed and connected amid our rapidly changing environment," said Byron Perry, chair of the Society of Publishers in Asia (SOPA).

Rethink and innovate business models

Digital transformation is causing a significant rethink of business models across a wide variety of industries in Asia Pacific. The news media industry is especially impacted due to changes in consumer behaviours and the rise of digital competitors, highlighting the crucial need for adaptability. Despite this, 53% of news media and publishing executives think their organisation's current business model will not be viable in the next five years, with 62% of them even believing that their organisation under-invested in digital strategies over the previous five years.

Views also differ on whether technology has positively or negatively disrupted the region's news media industry. 53% of all executives believe that digital technologies are threatening news media industry business viability but simultaneously, 87% of all executives believe that the right technology investments can improve long-term industry sustainability.

News media industry must evolve

54% of all executives believe news media companies must create new revenue sources or business models, especially beyond advertising sales or subscriptions, as noted by 65% of corporate executives and 73% of NGO executives. Meanwhile, 46% of executives believe in intensifying advertising sales and subscriptions, including 38% of media and publishing executives who are less enthused about focusing on other business models. In contrast, industry experts all believe that diversification is needed to build loyalty and revenue in the future – such as via events, podcasts and videos, online classifieds, or even cooking or game verticals.

"The past few years have shown that innovation is no longer a good-to-have, but a critical must-have. While there are different perceptions as to how the industry should innovate its business models, the three keys to success are to embrace technology, to think creatively, and to never compromise on quality" said Naka Kondo, manager of policy and insights at Economist Impact.

"We work closely with news partners across the region to support their goals and strengthen quality journalism and have seen first-hand the innovation that is taking place to explore new business models and find new ways to connect with audiences," Kate Beddoe, director of news partnerships at Google Asia-Pacific said.