13: Media viability
One of the most important challenges facing media and journalists these days is staying in business. Print media circulation is in decline. Tech giants have eaten much of the traditional media’s lunch. You could have the best legal framework on press freedom, but you won’t have journalism without the money to pay for it. And the weaker the media sector is in economic terms, the more vulnerable it becomes to capture and compromise. Is there any way out?
What kind of policy can help to support media houses? There are direct and indirect subsidies, and there are also new business models including revenue from online media.
SOURCES OF FUNDING
The main source of revenue is commercial advertising where businesses buy space in newspapers, time on air or online opportunities to market their goods to audiences. Lesser money is earned from selling the newspapers by news vendors on the streets and even slighter income gained through print subscriptions. Subscriptions, however, are vital for PayTV organisations and increasingly for online news organisations that either set up subscription paywalls, create membership schemes or ask for donations. Governments usually subsidise their state broadcasters (a few receive licence fees, as well) or set up official funds that media organisations can apply for. And donor funding plays an important role in sustaining media in large parts of Africa. In South Africa, Google – facing a Competition Commission inquiry – earmarked US$6m over three years to an independent fund that will help community media get digitalised.
It’s important to keep in mind that no money is neutral. All comes with strings attached of various kinds. Advertisers tend to be more interested in wealthier audiences, while the state can put the squeeze on even big media organisations and – if there are no guardrails –also reduce or stop its adverts to some outlets if it is unhappy with certain content. And all direct or indirect state subsidies are conditional and limited.
Donor funding is also often earmarked in ways that reduce editorial autonomy. Worse, it is subject to frequent flux as politics and fashions change – such as with USAID whose closure in 2025 hit many African media operations which had received direct and indirect support from that source.
Competition from global players
News media now have to compete for audiences, advertising or subscription fees on a hugely unequal basis:
- Traditional (and new) news producers are up against news aggregation services provided by Google, ChatGPT and others;
- Radio outlets are beginning to be rivalled by online podcast services, music-streaming services, and also by radio stations from around the world that are streaming online. Free-to-air television broadcasters compete with online video services such as YouTube;
- Broadcasters compete with Netflix, Amazon, TikTok and other international online services who escape regulatory obligations for local content and language services.
The effects are dire in many places. In South Africa, for example, the total daily/weekly newspaper circulation has dropped like a stone from around 4,5 to 5 million copies to 700,000 to 900,000 – a decline of 84 %.
| Year | Estimated Total Circulation | Notes |
| 2000 | 4.5 – 5 million copies | Peak print era |
| 2010 | 3.2 – 3.5 million copies | Early digital impact |
| 2015 | 2.1 – 2.4 million copies | Smartphone use rising |
| 2020 | 1.2 million copies | COVID accelerated drop |
| 2024 | 700000- 900000 copies | Mostly large weeklies and niche dailies |
The result is that in many places across Africa and worldwide, the flow of news and information has been much reduced. Many African media entities had already been struggling to survive both politically and economically long before the arrival of the tech giants, mainly due to weak local markets. Today, news deserts are growing across the continent as many countries have fewer, and increasingly understaffed, news services. These are often concentrated in capitals and metropolitan areas, and are dominated by the state on top of that. The rise of social media is not an alternative to having a sustainable media industry delivering quality news and informed comment for the public.
Policy responses
Governments need to be pushed to create an environment that safeguards independent, quality media and that enables journalism to find the funds it needs. It is up to journalists and civil society to call for and influence the approaches and ideas that make a real difference to sustaining the integrity and flourishing of journalism.
So, what can governments do to support media viability?
There is the option of indirect subsidies, for example through tax breaks by lowering or exempting the payment of Value Added Tax. Such subsidies are not common in Africa, but one could follow up the idea. There is also the option of calling for tax-free data connections to news websites at a time when so many people get their news online. Among existing indirect subsidies are preferential rates for broadcast licences for community media, which can make a big difference – especially if also coupled with discount rates for signal transmission by non-profit outlets.
The other mechanism used by some governments to support media is through direct subsidy. Here, they operate a special fund that media groups can apply to for support. There is increasing interest in the creation of such funds in Africa, in particular to support smaller and indigenous language media. South Africa, for instance, has the Media Development and Diversity Agency (MDDA). It is an independent state entity, with a board appointed by parliament, that provides grants money to community broadcasters and small local newspapers. Its funding comes partly from the government directly, and also from broadcasters who are obliged by law to contribute. Unfortunately, the agency has been mismanaged and is limited in its impact.
Clearly, any fund must have complete independence from the government, to ensure it can act in the interests of independent media. Transparent criteria and full disclosure of decision-making are also important to avoid the possibility that grants are being used for political ends.
The United Nations’ and other regional rapporteurs on freedom of expression stated in 2023:
“The allocation of State subsidies to the media should be administered by an independent body and be subject to external audit and judicial review… [The State] should be obliged to publish annual reports on the use of public funds to support media actors”
Government advertising resources play an important role in media economics. Many African media rely very heavily on government communications budgets, from business newspapers in Ethiopia to community radio in remote parts of Mozambique – and with that comes a lot of potential pressure. To avoid any misuse of this power one could campaign for an Independent Advertising Allocation Board with representatives from civil society, media industry associations, advertising professionals and media/communication experts. Such a board would set objective criteria and benchmarks on ads and oversee the budget allocation of government’s adspend, with transparent reporting on what goes where, and with what technical justification. Advertising should not be confused with subsidy – it must follow the principles of effective reach of particular audiences. This may have the impact of supporting some media, but it cannot be the intention. Subsidies, not advertising, are among the appropriate vehicles for state support for media development.
More ambitious ways where the state can help are in curbing Google’s monopoly of what is called “adtech”, whereby the company is the major gatekeeper and beneficiary of most digital advertising. This is a big issue in more powerful countries, and there is no reason why Africa should stand aside from such efforts.
NEW BUSINESS MODELS
There’s certainly no shortage of plans and ideas for new business models for media in the digital age.
Some news organisations have successfully built paywalls. One of these is South Africa’s News24, the parent company of both News24 (English) and Netwerk24 (Afrikaans), which by early 2024 had achieved a combined total of over 200,000 digital subscribers, with a total monthly income of R 16.6 million (US$ 86000).
Other organisations have successfully appealed to their audiences’ sense of obligation and solidarity, recruiting members who make a monthly contribution. In mid-2024, the Daily Maverick had approximately 30,000 active paying members, supplying about 40% of the organization’s total revenue.
Another example is The Continent, a free, award-winning weekly newspaper designed specifically for mobile platforms like WhatsApp, Signal and Telegram. It delivers pan-African journalism every Saturday, with a focus on stories told by African journalists for African audiences.The publication is supported by a trust in partnership with South Africa’s Mail & Guardian, and it has grown to over 30,000 subscribers across 140 countries.
263Chat is a prominent independent media platform in Zimbabwe, focusing on local events in the country. It uses social media such as Facebook, X and Instagram as well as WhatsApp groups to distribute a daily e-paper to its users. To make money it also produces commissioned documentaries and offers multi-media services to other businesses.
Support for new businesses
The international Media Development Investment Fund invests in media projects on the basis of clear business plans. Various organisations offer short-term funding and mentoring to support new ideas. Deutsche Welle Akademie has such a fund, while the Aga Khan University in Nairobi has an Innovation Centre and the University of the Witwatersrand in Johannesburg has Jamlab, short for Journalism and Media Lab.
One major new initiative is the International Fund for Public Interest Media (IFPIM), which has secured the support of UN Secretary General Antonio Guterres and many world leaders. By April 2025, the IFPIM had raised some US$52 million from a coalition of over a dozen governments, philanthropic organizations, and corporate donors. The fund has provided grants to several media organizations in South Africa, Ghana, Sierra Leone, Niger and Tunisia.
IN SUMMARY
The future is uncertain, as always. What is certain, though, is that journalism needs support in order to keep the wheels of democracy turning and to provide the information needed for sustainable development. Both small and large initiatives of various kinds can help ensure that African journalism survives and thrives.
Policymakers need to be stimulated to think about the state of the media and what can be done to assist. Even politicians need quality information. For their part, journalists and civil society should be making sure that these actors see what’s happening and become part of the solution.
This INFO BITE is selected from the online course on Media
and Digital Policy in Africa, offered by Stellenbosch University
in association with Namibia Media Trust.
There are free and paid options available for the full course.
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