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Impact of Covid 19 on Media Sustainability

newspapers did not generate income derived from copy sales since they
were forced by
circumstances to suspend their print editions,” declared Botswana’s Mmegi.34
In South Africa, two magazine publishers, one independent and one the
magazine division of listed Caxton & CTP, were closed as the lockdown started
to wreak havoc the news media industry. This was a result of a change
in the behaviour of readers, who deserted the kind of content magazines
published, as well as in some cases the rising cost of the royalties that had
to be paid to overseas owners of the magazine brands as the local currency
depreciated against the dollar.35 At one stage the rand depreciated by around
36% against the dollar. Currency depreciation also increased the cost of
newsprint in South Africa, which is priced at import parity even though
it is produced in the country. This too had an impact on print publishers
in South Africa and the region, which imports newsprint.
Media24, owner of many of South Africa’s iconic newspaper and magazine
titles, was frank in assessing the damage to the business of the lockdown
in a July 7 statement, in which the company said it was, “considering the
closure of five magazines and two newspapers, outsourcing and reducing
the frequency of its remaining monthly magazines, taking two newspapers
digital only and reducing staff in related support services.”
Ishmet Davidson, CEO of Media24, was blunt about the effect of the crisis
on Media24’s print operations and the necessity of focusing on digital:
… The pandemic has accelerated the pre-existing and long-term structural
decline in print media, resulting in a devastating impact on our own already
fragile print media operations with significant declines in both circulation
and advertising since April. For many of our print titles the benefits of prior
interventions to offset the structural declines and keep them on the shelf
no longer exist and they’ve run out of options in this regard.
Even with a return to pre-Covid-19 economic levels, the impact of the
pandemic on our print media operations will be unrecoverable. Sadly, we
have no choice but to restructure our business now to curtail the losses
in our print portfolio and allow us to focus on keeping the retained titles
sustainable and in print for as long as possible.36

34. Mmegi Editor, “Mmegi Online : Media under Threat,” Mmegi Online, June 5, 2020, http://
www.mmegi.bw/index.php?aid=85764&dir=2020/june/05.
35. Rumney, “SANEF’S COVID 19 Impact on Journalism Report (Interim),” 24.
36. Media24, “Media24 Media Release,” July 7, 2020.

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