TRADITIONAL newspapers are facing many challenges in the digital age and are bleeding funds in an effort to transform themselves before being made obsolete.

As the proliferation of artificial intelligence draws closer, the manpower-reliant journalism industry is facing disruption brought by technological advancement, dwindling advertising revenue and the rise of social media.

Reading habits have also changed, with the younger generation preferring to get their news online, drawing more advertisers to their preferred medium.

This has caused the print media to lose revenue, including the four major Chinese-language dailies owned by Media Chinese International, leading English daily The Star, and the Malay daily Utusan Malaysia.

Media Chinese International recorded a net loss of RM44.3 million for the 2018 financial year, with its turnover falling 6% from RM1.17 billion to RM1.1 billion.

Utusan Malaysia, meanwhile, recorded a net loss of RM186 million for the 2019 financial year, the organisation’s worst performance since 2012.

However, some media organisations have managed to rebound.

Star Media Group Bhd’s pre-tax profit went up 26.7% to RM28 million and its offer of voluntary separation schemes (VSS) contributed to the rebound.

But many of the traditional media organisations remain on a downward spiral because of reduced publishing, distribution and weak advertising sentiments.

Media organisations have been scrambling to remodel products and content, trimming the fat in their operations and offering VSS or early retirement plans.

However, media practitioners see these measures as short-term fixes and the only way out is for these organisations to diversify their revenue source.

Chang Teck Peng, a senior lecturer at the Faculty of Communication and Creative Industries, Tunku Abdul Rahman University College, said diversifying revenue source is the way forward for media companies, but this is easier said than done.

He added most local media companies have tried many ways to generate revenue, such as on-demand streaming and online purchasing for non-news related products.

“But these methods are not nearly as profitable as traditional advertising. I’m afraid nobody has found a winning solution yet.”

He added that continued losses will eventually affect the share prices of the organisations.

“The pressure on listed media companies are not just on profit, it’s also on stock prices. If they keep making losses, stock prices will fall, affecting shareholders’ confidence as well.

“Hence, turning losses into profit or reducing losses is a priority for these companies. They’ll cut costs as much as possible, including offering VSS.”

National Union of Journalists general-secretary Chin Sung Chew said it is possible to turn newspapers around by focusing on quality, professional journalism.

“Other than pinching pennies, expanding the business and increasing sales volume, we need to re-position ourselves.

“In terms of speed, there is no competing with online media but newspapers can provide more in-depth, extensive and thought-provoking reports.”

He said only by strengthening content, improving credibility and minimising fake news will readers regain confidence in traditional media.

“As for sales, if the measures can stop the decline then it is considered a good situation.”

Chin also told The Malaysian Insight that the major drawback of such measures is that they are resource-intensive.

“Are newspapers willing to invest the resources required for time-consuming, in-depth reports? Major issues are difficult to keep track of and information is difficult to collect and verify, some reports may even require up to a month to produce.

“The results, however, are rewarding as they can reveal the country’s shortcomings.”

Chin said some Chinese dailies employed teams of journalists dedicated to producing such reports, but most have since been disbanded.

Even then, he said, individual reporters can still perform such tasks on their own but he hopes that newspapers can make the necessary work adjustments to accommodate this, to enhance the quality of journalists.

However, Chang questioned if the Malaysian media has truly invested in in-depth reporting before.

With the media industry on a downward spiral, he said organisations are unlikely to invest in such reports while the incentive of chasing instant updates get stronger.

“Even when media was most profitable, I don’t think they invested resources in such reports.

“This is because readers’ demands weren’t high at the time. If you can make a tidy profit by putting in 60% effort, why would you invest more and put in 70% or even 80% effort?

“Investing more means more costs, but it may not increase revenue. Now that the media industry is on a downturn, it is even more unlikely that organisations will invest in in-depth reports.

“They’ll likely continue to invest in producing quick, eye-catching reports to get more clicks.”

Chang also said the working conditions of Malaysia’s journalism industry needs to change as it limits growth.

“Issues of welfare and wages need to be addressed. They limit growth. And it shows if media organisations are merely a business for the owners, or if they are willing to invest in more in-depth reports.

“And assuming that the Anti-Fake News Act is abolished in the future, it presents another problem such as affecting the quality of news as it becomes more commercialised. I think more professional reporters need to be trained.”

On the salary and welfare of journalists, Chin, who works in Chinese media, described it as “wanting a horse but not feeding it”.

“These days, reporters must take their own pictures and even videos. Some even have to act as anchor for online broadcasts and photographers have to do their own editing now.

“A journalist’s job scope has expanded a lot, but we’re still being paid the same. If you want your workers to perform well then you must award them accordingly.”

Chin said low-level employees are always the first to face the chopping block whenever media companies suffer losses, while top level executives are left untouched.

He said media companies don’t seem to realise that getting rid of one top-level executive may mean retaining several reporters.

“Some editors’ work is redundant, such as going over a news story, how many editors do you need to review a copy?

“Media companies often choose to get rid of low-level employees first because there are so many of them, but then even after they get rid of a few reporters, they still cannot match their competitors’ pay.”

Chang said having a lean operation is nothing new for the media industry, but it is now forcing journalists to multitask often means having one person do the jobs of many.

Chang and Chin said replacing manpower with computers is already occurring in media organisations overseas and this will happen in Malaysia soon.

However, both said machines can never fully replace humans in the field of journalism.

Chin said to his understanding, artificial intelligence is most likely to disrupt the editing process, such as writing headlines, angling stories, and even set priorities.

“But a journalist’s writing style and work can’t be fully replaced. Artificial intelligence and machines may further reduce the manpower of media organisations but journalists will remain.” – June 9, 2019.