Escalating costs, dwindling adspend pose challenges for traditional media— Dokpesi
By Zion Rufus
Chairman of DAAR Communications, Chief Raymond Dokpesi Jnr. has identified escalation in operational costs of running businesses and the decline in advert spend for traditional media amongst others, as some of the rippling effects of the current economic realities stunting the growth of the media industry in Nigeria.
Raymond, who identified these factors while delivering his address at the 14th Annual General Meeting of the company, disclosed that given the various operational challenges, it is anticipated that many businesses will experience greater shrinking or closure of their production capacity due mainly to high rate of insecurity, high operational costs and other macro-economic disequilibrium.
He said: “The ever escalating operational costs together with the dwindling advert spend in the traditional media have continued to create major challenges to the bottom line in the industry. It is a known fact that due to the epileptic public power supply, all the stations of your company across the country are dependent on generators to sustain daily operations while transactions denominated in foreign currencies have continued to take a toll on us. Within the last one year, diesel cost alone has risen by over 100% while other costs are continuously on the upward swing.”
The harsh economic realities which includes the Russia-Ukraine war, has caused a set-back in global economic recovery, rattled global financial markets, disrupted supply chains, and provoked a surge in energy and commodity prices.
According to the Chairman, the resultant effect of these inflationary pressures has been an upsurge in the operational costs of running businesses.
He revealed: “Regrettably, our only source of revenue is broadcast airtime which is highly elastic in demand and perishable with effluxion of time and thus, airtime incremental rate is asymmetrical to increases in operational costs. The resultant effect was great pressure on cost recovery, not only on our part but also that of our customers, including Government Agencies who consequently shrunk their advertising spend due to the adverse economic realities.”
The Chairman further disclosed that the disposition of Regulators towards the private media and most importantly free press has remained a great challenge in the recent time.
He explained: “In recent times, there have been a series of actions and regulations from the authorities which have had the effect of intimidating media organizations and Practitioners. I applaud the role played by the Broadcasting Organisation of Nigeria (BON), Independent Broadcast Association of Nigeria (IBAN), and other stakeholders in the broadcast industry for rising to the occasion to challenge these measures taken in the recent time to stiffen free press in Nigeria. Press freedom as enshrined in the Nigeria Constitution is an essential ingredient for a just and egalitarian society as well as an accountable democratic environment.”
RECOMMENDED ARTICLES
Comment
No comments found.