Success revolves around 3 elements: content, access & reach: Pradeep Gairola
At the recently concluded Indian Magazine Congress 2024, Pradeep Gairola, Business Head - Digital, The Hindu Group, addressed the pivotal issue of magazines' relevance amidst the swiftly changing media terrain in his session "Product Management and Subscription lessons from Frontline/Hindu”. Starting his address with a short story, Gairola said, “The story begins with Jonah Peretti, CEO, and co-founder of BuzzFeed and Huffington Post, back in June 10, 2015. He found himself at the New York Times headquarters, engaging in a familiar task. Jonah was there to explain to the New York Times why he believed BuzzFeed had evolved past them. He cited data showing that in January 2015, HuffPost had 100 million unique visitors, while BuzzFeed had 78 million, and the New York Times had 58 million.”
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“At the interview were Arthur Sulzberger Jr., the president of the New York Times, and CEO Mark Thompson. Cliff Levy, an ambitious editor, led the conversation. He posed a hypothetical scenario to Jonah: What would he do if he were named executive editor of the Times tomorrow? Jonah, perhaps with a touch of humor and arrogance, replied that he would ask for a raise from the board, shut his office door, and cry.”
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“In the summer of 2015, there was a prevailing assumption that BuzzFeed was on the rise while legacy giants like the New York Times were struggling to adapt to the internet. Fast forward to 2024, and BuzzFeed's value stands at 8% of the New York Times, largely due to its acquisition of HuffPost in 2020. Now, it's not just BuzzFeed but BuzzFeed plus HuffPost that represents 8% of the market,” Gairola explained, sharing a historical perspective on the global media landscape. He elaborated further, “Reflecting on this, we see the dynamics of the media landscape. Initially, legacy players like the New York Times misunderstood the internet as merely a distribution medium for their print content. Meanwhile, digital-native publishers swiftly capitalized on the changing landscape. However, over time, legacy players adapted, realizing the importance of reader revenue and high-quality content. As a result, they've seen significant growth in their digital subscriptions.” Looking at the broader media business, success revolves around three elements: content, access, and reach. The interplay between these elements is influenced by the organization's vision. For example, publications like The Hindu and Frontline have focused on building their economies around reader revenue, resulting in substantial growth in digital subscriptions, stated Gairola. According to him, digital transformation is complex, particularly for legacy organizations accustomed to risk minimization. Success in this realm requires a shift in mindset towards embracing risk and innovation. The journey towards digital success unfolds in stages, from basic recognition to sustainability and unprecedented growth. It necessitates alignment across the organization and a relentless focus on engaging audiences and monetizing content effectively. The story of BuzzFeed, HuffPost, and the New York Times illustrates the evolving nature of media in the digital age. It's a story of adaptation, innovation, and ultimately, the pursuit of sustainable business models in a rapidly changing landscape, industry stalwart stated. He also participated in a fireside chat with Manish Dhingra of Readwhere in which he discussed the evolution of revenue streams for magazine publishers, particularly focusing on the shift towards subscription-based models. He highlighted The Hindu, initially overlooked the digital landscape, leading to missed opportunities in audience engagement. However, in 2018, recognizing the limitations of traditional advertising-centric approaches, they pivoted towards subscription-based revenue. Despite skepticism, our loyal readership demonstrated trust by subscribing without the need for a free trial, emphasizing the publication's strong brand reputation. This transition required experimentation with different paywall models, ultimately resulting in 50% of digital revenues now coming from subscriptions, Gairola noted. Regarding content strategy, he emphasized the importance of clarity and focus in defining the publication's unique value proposition. He cited examples like Frontline's emphasis on long-form journalism, which made it easier to sell subscriptions. Gairola cautioned against diluting content quality for the sake of monetization, advising against including low-value or entertainment content behind paywalls.
Tags : The Hindu Group Pradeep Gairola Readwhere Indian Magazine Congress Manish Dhingra