Promedialarmenia Final Report
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ProMedialArmenia Funded Bv USAID Final Report August 12.1999 - August 29,2003 Cooperative Agreement No. 111 -A-00-99-00075-00 Submitted: December 15, 2003 IREX submits this final report in accordance with the requirement of the ProMedia IllArmenia Cooperative Agreement (CA No. 111-A-00-99-00075-00). I. Introduction The launch of IREXlProMedia II in Armenia coincided with the tragic shooting on October 1999 in the National Assembly in which eight leading members of the legislative body were shot dead by assailants. This gruesome tragedy was captured on film and shown worldwide on CNN, and was an indication of the political turmoil that continues to roil beneath the surface in what is generally considered to be a calm and orderly society. ProMedia I1 began work in a print media environment characterized by a plethora of publications, each which has its own distinct niche and each supported by a political party. political figures, or private businessmen, and sometimes combinations of these. Artides were highly opinionated, often disregarding facts in favor of inflammatory comments. Newspapers were poorly designed and hard to read, and generally lacking photos or stories on topics other than political antics and outrages. Not unexpectedly, readership of the print news media was extremely low by any standard, an unfortunate situation since Armenia had a very high rate of literacy. Over the past four years, IREWProMedia II has provided more than 110pmgrams. consisting of seminars, consultations, workshops, academic classes, studies, and study tours. Its programs have touched dozens of editon and commercial managers and more than 300 professional and student journalists in Yerevan and the regions. There are few, if any, professional or student journalists in Armenia who have not been exposed to or participated in IREWProMedia programs. Though notable progress has been made, achieving a truly independent news media will take time. However, unlike four years ago, as a resun of ProMedia I1 editors are now keenly aware of the need for their newspapers to grow as independent business. They rightly contend that financial independence for the media will come as the economy improves, but also agree that more can and should be done themselves. They acknowledge that the western model of newspapers, in which revenue is derived from advertising and thus provides a substantial degree of independence, is an admirable goal, but it cannot come to Armenia until the Armenian economy expands enough to generate commercial competition. Editors know too well that advertising comes from a robust market economy, which unfortunately does not yet exist in Armenia. Limited demand equates to limited supply and limited competition. A low level of competition means a low level of advertising. Another factor depressing the advertising market is Armenia's pervasive 'gray" or cash economy. Checks and credit cards do not exist in daily commerce, largely to avoid cormpt tax officials. ProMedialArmenia Funded By USAID The most significant result of the IREXlProMedia II program is that today, most newspaper editors and publishers view their newspapers as a business, not just voices for political or private interests. Their intent is now to serve their readers, not just their sponsors. The importance of this change in attitude cannot be underestimated. Moving editors toward the western model presented many difficulties. Each newspaper had a reputation for the way it presented the news. In most cases, newspapers reflected the shared points of the editor, its sponsors and the readers. Newspapers generally did not need to appeal to a broad readership because their core readership shared their political point of view. Deviating from a specific point of view meant loss of core support, both in terms of readership and financing. The welfare of the newspaper, indeed its very existence, was threatened by the westem model. Editors were in comfortable, secure positions because they did not depend on advertising revenue or wide readership. Editors obtained necessary funding through sponsors and/or contributors and supporters, public and private. Finally, no successful model yet exists in Armenia to demonstrate the virtues of the westem model. Readers have never seen a general interest, objective newspaper, and do not expect it when they pick one up. Retailers, merchants, and businessmen in Armenia are often unfamiliar with advertising practices and marketing in the print media. They are reluctant to use the print media for advertising because newspapers reflect such narrow points of view and consequently had -- and still have - very low readership, or market share. as compared to television. Television dominates the news market and is the main source of news for 85 percent of the population. While many people read newspapers, they do so for opinion and analysis, not news. Editors know well their niche, their readers and their sponsors, and act accordingly. But the paradigm is beginning to crack, as a result of IREXlProMedia II Hovaness Galadjan, editor of opposition semi-weekly, lravunk, explained that. Weare a party newspaper. There was no objectivity at all (during the 2003 elections)." Galadjan said the newspaper lost 10 percent of its readers during the elections, but regained them after. Iravunk, it must be noted, is the most popular of all newspapers in Yerevan, and claims a total circulation of between 14,000 and 17,000 on a weekly basis. Perhaps reflecting lessons learned from the election. Galadjan said that newspapers must change in order to survive. We need to de-politicize newspapers. Trust (of readers) will come when newspapers become real businesses. Their voting is done by the wallet. If they buy it, they will trust it." Hakob Avedikian, editor of the centrist daily Azg, has said the 2003 elections revealed the weakness and vulnerability of the print media. He said newspapers do not need sponsors FOR ADDITIONAL KFORMATION COXIACT: hdaTrd, Deputy hector E-marl ibaICue\ org morw (XI e~lG Far (32)eXIF \\'eb hq W?M. pmmhira r.ig ProMedialArmenia Funded By USAID lREX now, as much as they need serious investors. "If there is no capital investment, no further development (in the news media) is possible." This new business thinking was also shared by Aram Abrahamyan, editor of the opposition daily, Aravot, who said, "The newspaper does not need a sponsor, but an owner.' Abrahamyan said he likes the western model of a publisherlowner who manages the business side of the newspaper, and an editor who manages the news side. We are coming closer and closer to the time when newspaper will turn into businesses." Much of this change in attitude, which is the first and most important step toward achieving independence, is the result of the wide range of programs provided by IREWProMedia II over the past four years. Another key indicator of this important change in attitude is a steady increase in advertising as a source of income for newspapers, a step toward weaning them away from heavy reliance on public and private sponsors. In most cases, print media advertising was virtually nonexistent when IREWProMedia began. Most notable increases in advertising volumes are Novoe Vremya, Iravunk, and Azg, all of which have participated in IRWProMedia Ilprograms. Novoe Vremya, the Russian language broad-sheet, now averages about 20-25 percent advertising, up from an average of less than 10 percent. This is due to an active advertising sales manager and an expanding amount of classified advertising. Both of these decisions were the result of editor Ruben Satyan's participation in IREWProMedia II programs. Additionally, Novoe Vremya now publishes three times a week, up from twice weekly, effectively increasing its circulation by one third. lravunk averages from 20 to 30 percent advertising, sometimes more, which is about a 10 percent increase from previous years. Editor Galadjan said the newspaper generates revenue for the Constitutional Rights party with which it is affiliated. Azg also continues to average only about 12 to 15 percent advertising. The Azg commercial director has been a regular participant in business and advertising seminars and study tours sponsored by IREWProMedia 11. Aravot, another opposition daily, fluctuates from 12 to 15 percent advertising, but occasionally has up to 25 percent advertising. As a result of an IREWProMedia II study tour. Aravot became the first Armenian newspaper to print color advertising. Delavoy (Business) Express, the Russian language twice-weekly, continues to lead the field by averaging about from 30 to 50 percent advertising. Delavoy Express is the community leader in terms of classified advertising. The editor, who has also participated extensively in IREWProMedia programs, says his newspaper operates free of outside sponsorship and exists solely on the earned income of its advertising sales. ProMedialArmenia Funded Bv USAID Key accomplishments during the ProMedia program include: Business and management training. Editors and commercial managers of all major newspapers have participated in seminars, conferences and study tours, and private consultations that exposed them to U.S. and western style media management. Professional journalism development. More than 150 professional working journalists in the print media in Yerevan and the regions have participated in multiple seminars and programs on various genres of objective, fact-based journalism. Student journalism instruction. More than 150 student journalists in various institutions of higher learning in Yerevan. Guimri and regional cities have studied in the basics of objective, fact-based journalism, including investigative journalism as well as the writing and editing of three student publications. Formation of an inde~endentadvertisincl cooperative. Named Bia Press. this independent advertising agency was the result oi a two-month advetkg sales training proqram by IREXIProMedia II. The agency-. sells advertising for a special supplement thatis inserted in eight participating newspapers which share the ad~ertisin&~rofits,thus contributing to the financial independence of the print media. Special newspaper supplements. Produced in connection with local, regional.