SPECIAL REPORT

Overview of Latin American press The pre-Internet boom

Madrid, October 2013

BARCELONA BEIJING BOGOTÁ BUENOS AIRES LIMA LISBOA MADRID MÉXICO PANAMÁ RIO DE JANEIRO SÃO PAULO SANTO DOMINGO OVERVIEW OF LATIN AMERICAN PRESS THE PRE-INTERNET BOOM

1. INTRODUCTION 1.INTRODUCTION 2. WHAT DO PEOPLE READ IN LATIN AMERICA? Latin American press is currently thriving —growth in readers, and circulation in most countries—, contrasting with the 3. GROWTH IN READERS crisis in other parts of the world, especially and the USA. 4. CONSOLIDATION OF THE PUBLISHING GROUPS There are media more suited to the emerging social sectors —the 5. FUTURE OUTLOOK: LOSS OF lower middle classes— in content and price, alongside READERS AND DIGITAL CHALLENGE focusing on the interests of the higher social strata and the professional middle classes.

LLORENTE & CUENCA These are times of general prosperity throughout the region, although there are already hints of the challenges that will appear in the near future and which have commenced in some countries such as : falling numbers of readers, sales and advertising as those readers shift from printed press to the digital press on Internet.

This report analyses the following points:

• The current situation of the printed press in Latin America, referring to the number of readers, characteristics, trends and degree of business concentration.

• The short-term challenges facing the printed media as Internet advances.

We shall try to explain first of all what people read in Latin America, why the number of people reading printed press is growing in most of these countries, the business structure in the media of this region and, finally, the future outlook for printed press in Latin America.

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2. WHAT DO PEOPLE READ and education. One of their IN LATIN AMERICA? characteristic features is that they present the contents One of the characteristic features in a clear, direct language, of the printed press in Latin often using jargon, bearing in America is its variety and widely mind their target public in the differing target publics with a broad middle-middle and low-middle spectrum of cultural education and classes. The front page is social levels, which in turn leads to colourful with large headlines, “The Popular Press a diversity of contents and forms containing news on crime & is, together with the of presentation. accidents, entertainment and free press, behind the show business. current surge Some 5 types of daily newspapers • The Regional Press is very of readers” can be distinguished in the region: the traditional press, popular important in the largest and press, regional press, specialist most decentralised countries, press and free press. since the major cities in the interior have enough critical • The Traditional Press is what is mass and volume of population, known as “the serious press”, especially in the working-class including large, long-standing districts, to maintain well- benchmark newspapers such established printed media as La Nación and Clarín in with large circulation. That is Argentina, El Mercurio in Chile, the case of countries such as El Comercio in Peru, O Estado in Mexico, Venezuela, Colombia, Brazil or El Tiempo in Colombia, Brazil and Argentina. In along with others that have , Quito and appeared on the scene during are the two poles where the the last half a century, such principal media are developed, as Reforma in Mexico, Prensa which actually operate as Libre in Guatemala or La national press. In contrast, Tercera in Chile. there is a large dispersion in countries such as Bolivia with • The Popular Press is, together small, provincial circulations. with the free press, behind the current surge of readers • The Specialist Press embraces and exists throughout the a large number of media, but entire region, from Mexico and two large categories stand out, Guatemala, through Peru and those dedicated to economic Brazil, to Argentina and Chile. information, addressed at a minority but with a high These newspapers are cheaper purchasing power, and sports and offer everyday, local press, which is much more news on the subjects and massive and popular. In areas of most interest for the fact in some countries, like working class and emerging Mexico, Peru and Venezuela, middle class: public services, the sports press is among the the health service, safety most widely read.

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In the more socially and 7 in Mexico, these countries economically developed leading this new form of countries the economic press—. The most prominent media, although minority, are free is the Metro highly influential, as is the International —“Metro”—, case of Ámbito Financiero the largest newspaper in and El Cronista Comercial in Latin America, with almost Argentina —with 74,000 and 3 million daily readers in the 58,000 copies a day—, Valor in metropolitan areas of Mexico, “What can be observed Brazil, and El Financiero and Brazil, Chile, Ecuador, Peru, throughout the region is El Economista in Mexico with Guatemala and Colombia. a competition between 98,000 and 38,000 copies each. “serious” media and What can be observed throughout popular press” In this regard, certain weekly the region is a competition magazines have a huge impact between “serious” media and are very important, and popular press. According such as Veja in Brazil with a to SkyScraper Life, a forum of circulation of over 1 million multimedia information resources, copies, Qué Pasa and Capital which published the report “The in Chile, Brecha and Búsqueda 200 daily newspapers most widely in Uruguay, Semana in read in Latin America: average Colombia, Letras Libres and daily circulation in 2011”, the Nexos in Mexico and Caretas most read newspaper in the region in Peru. is the popular Peruvian newspaper Trome, followed in second place by • In recent years, since the Clarín in Buenos Aires with 348,239 late nineties, the free press a day; third was the popular Super has also developed with Noticia in Belo Horizonte with great success. 293,572; fourth Folha in Sao Paulo with 286,398; and fifth, another As pointed out by the popular newspaper, Nuestro Diario specialist in free press, Piet in Guatemala City with 270,097. Bakker, from Amsterdam University, this type of The first ten places are completed newspaper is the most recent with El Tiempo in Bogotá —6th with phenomenon in the world of 269,394—, Extra in Río de Janeiro printed press. Its circulation —7th with 265,018—, O Estado in grew by 140% from 1.2 million Sao Paulo —8th with 263,046—, O in 2005 to 2.8 million in 2010, Globo in Río de Janeiro —9th with reaching a total of 3.5 million 256,259— and La Prensa in Mexico newspapers distributed in City —10th with 244,299—. 2011 —a penetration of 1 newspaper for every 100 As may be observed in this inhabitants—. The number of classification, the popular free newspapers in the region newspapers —Trome, Super rose from just two in 1999 to Noticia, Nuestro Diario, Extra and 40 and currently stands at 37 La Prensa— and the traditional —8 in Argentina, 8 in Brazil and ones —Clarín, Folha, O Estado,

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O Globo and El Tiempo— the markets are traditional and predominate on the market. popular press, with a few specific cases where specialist press Analysing the situation country is more important, especially by country, we observe that the sports newspapers, and even printed media predominating on regional press:

COUNTRY MEANS SALES TYPE COUNTRY MEANS SALES TYPE

Clarín 348,000 traditional press HONDURAS La Prensa 60,000 traditional press La Nación 162,000 traditional press Diario Popular 96,000 popular press La Voz del Interior regional daily La Prensa 244,000 popular press ARGENTINA 55,028 La Gaceta–Tucumán 53,925 regional daily El Gráfico 235,000 popular press Dario Deportivo Ole 49,625 sports daily El Norte 232,000 regional press La Capital–Rosario 39,175 regional daily El Informador 190,000 regional press El Día–La Plata 38,362 regional daily Record 180,000 specialist press Ovaciones 158,000 specialist press MEXICO Reforma 135,000 traditional press Extra 80,000 popular press La Jornada 107,000 traditional press Gente 78,000 popular press BOLIVIA El Economista 98,000 specialist press El Diario 45,000 traditional press El Universal 81,000 traditional press El Deber 28,000 traditional press Milenio 80,000 traditional press Excelsior 25,000 traditional press Folha 297,000 traditional press popular press Super Noticia 296,000 NICARAGUA La Prensa 42,000 traditional press Extra 265,000 popular press BRAZIL O Estado 263,000 traditional press traditional press El Siglo 66,000 popular press O Globo 256,000 PANAMA Zero Hora 188,000 popular press La Prensa 65,000 traditional press

Últimas Noticias 39,000 traditional press El Mercurio 161,000 traditional press PARAGUAY Últimas Noticias 124,000 popular press ABC Color 39,000 traditional press CHILE La Cuarta 107,000 popular press La Tercera 98,000 traditional press Trome 560,000 popular press La Segunda 133,000 traditional press El Popular 215,000 popular press Correo 161,000 popular press Nuevo Ojo 151,000 popular press El Tiempo 269,000 traditional press PERU Líbero 106,000 sports daily Q’Hubo Medellín 121,000 popular press COLOMBIA El Comercio 100,000 traditional press El Espectador 58,000 traditional press Perú 21 100,000 traditional press El Espacio 48,000 popular press La República 50,000 traditional press

Diario Extra 169,000 popular press COSTA RICA Listín Digital 66,000 traditional press La Nación 65,000 traditional press DOMINICAN Hoy 50,000 traditional press REPUBLIC Caribe 28,000 traditional press El Universo 135,000 traditional press El Nacional 28,000 traditional press ECUADOR El Comercio 120,000 traditional press Últimas Noticias 69,000 popular press El País 65,000 traditional press Extra 69,000 popular press URUGUAY La República 38,000 traditional press

El Salvador Diario Hoy 57,000 traditional press Últimas Noticias 170,000 popular press Meridiano 150,000 sports daily Panorama 101,000 regional press Nuevo Diario 270,000 popular press VENEZUELA Líder 100,000 sports daily Prensa Libre 130,000 traditional press GUATEMALA El Nacional 90,000 traditional press El Periódico 30,000 traditional press El Universo 82,000 traditional press Siglo XXI 30,000 traditional press

Source: Author’s preparation based on figures from SkyScraper Life (average daily circulation in number of copies sold in 2011)

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As can be seen in this table, Bolivia the most-read media are the competition between the popular press such as Extra benchmark traditional press and Gente, which double the and popular press is clearer circulation of El Diario in La Paz in Brazil than anywhere else. and El Deber in Santa Cruz. The daily newspaper Folha in Sao Paulo and the popular The situation is similar in newspaper Super Noticia vie Guatemala, albeit on a smaller with each other every year for scale owing to the size of the “In contrast to the the largest number of sales. country: the undisputed leader situation in Europe and Moreover, the six newspapers is the popular Nuestro Diario USA, in most of the Latin with the highest sales are —270,000 copies—, way ahead American countries, the popular daily newspapers of the traditional newspapers excluding cases such as Super Noticia, Extra and Zero such as Prensa Libre —130,000— Hora, and the traditional daily , El Periódico —30,000— or Argentina or Chile, the newspapers Folha, O Globo and Siglo XXI. Similarly, in Costa number of people who O Estado. Rica Diario Extra, a popular read printed press newspaper, sells 100,000 copies is growing” In Peru, however, the more than La Nación, the predominance corresponds benchmark daily newspaper in to popular press: Trome is the country. undisputed regional leader with 560,000 copies, followed In Argentina, Chile, Colombia at a considerable distance by and Ecuador the traditional press another daily newspaper of the is most widely read, although same type, El Popular. the popular press also have a strong presence on the market. The Mexican market is dominated The principal newspapers in by the popular press —La Argentina are Clarín and La Prensa—, the sports papers — Nación; in Ecuador, El Universo Récord and Ovaciones— and the and El Comercio; in Chile, El regional newspapers —El Norte Mercurio; and in Colombia, El de Monterrey and El Informador Tiempo. But these newspapers de Guadalajara—. The major are followed very closely by traditional newspapers follow the popular newspapers —Las in fourth place —Reforma, La Últimas Noticias and La Cuarta Jornada, El Universal, Milenio in Chile, Últimas Noticias in and Excelsior—. Ecuador, Q´Hubo, with its corresponding local editions, in Along the same lines, in Colombia and the weakest of all, Venezuela the popular press Diario Popular in Argentina—. —Últimas Noticias—, regional press —Panorama— and sports press —Meridiano and Líder— 3. GROWTH IN READERS top the list of most-sold daily newspapers, outstripping the In contrast to the situation traditional serious press —El in Europe and USA, in most of Nacional and El Universal—. In the Latin American countries,

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excluding cases such as extending throughout the Argentina or Chile, the number entire continent. of people who read printed press is growing. From a ratio As pointed out by Piet Bakker, of 6.2 newspapers per 100 journalist and academician people in 2002, it rose to 6.7 at the University of Utrecht per 100 people in 2010 while and expert in the worldwide the circulation increased by phenomenon of free press, 15%, according to figures free newspapers will not “The improvement in published by the consultancy replace paid papers, but the economic situation in PricewaterhouseCoopers (PwC). reach a supplementary type of the region has brought a reader: “The main reason for higher level of resources PwC forecasts a growth of the the low level of substitution and increased purchasing daily newspaper business in seems to be that free dailies Latin America by around 5.5% target not only new readers power of the population, per annum over the next five but also a different sort especially the emerging years, which contrasts with the of reader. Free papers are middle classes” 1.4% p.a. drop forecast in North usually also quite successful in America over the same period, finding that particular reader. or the growth of just 0.3% in As they aim for a —preferably Europe and the Middle East. urban younger— non reading audience, existing titles don’t There are several reasons for this have so much to fear from growth, which is underpinned free dailies. At the same by the rise of popular and free time there are many people press and goes against the who read both paid and free global trend: dailies, which also suggests a low level of substitution”. • Firstly, the improvement in the economic situation As shown in the following graph, in the region has brought circulation has doubled between a higher level of resources 2005 and 2011: and increased purchasing power of the population, This is a global phenomenon especially the emerging which has extended throughout middle classes, the main the region. Some of the most niche of readers of the popular titles are La Razón popular press. in Buenos Aires; El Día in Bolivia; Sao Paolo Metro, • Secondly, the consumption of Greater São Paulo, Santos, free press has also grown. The Campinas, Rio de Janeiro, “Metro” phenomenon began in Curitiba, Belo Horizonte and in 1995 and reached Destak in Sao Paolo, Rio de Latin America in 2009 when Janeiro and Brasilia; and in this type of dailies appeared in Chile, Publimetro and Ecuador, Colombia, Guatemala in Santiago, Viña del Mar, and Peru, subsequently Valparaíso and Rancagua.

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In Colombia, ADN in Bogotá, 4. CONSOLIDATION OF THE Medellín, Barranquilla, Cali; PUBLISHING GROUPS Al Día and Diario Libre in the Dominican Republic; Metrohoy, There are large communication Metroquil and MetroCuenca groups behind the major in Ecuador; Publinews in printed press in the region. Guatemala; Publimetro in These major corporations have Peru; Primera Hora and Ciudad the largest circulation, largest in Venezuela. numbers of readers and largest “There are large advertising portfolios. communication groups In Mexico we can find El M behind the major in Mexico City, in circulation In Brazil, the most important printed press in from 2000 to 2007; El Tren in paper, O Globo, is owned the region” Guadalajara, created in 2000; El by InfoGlobo of the Marinho Nuevo Siglo, 2004-2010; El Tren in Group, a media conglomerate Monterrey (2005); Crónica Síntesis with holdings in radio, press (2006-2010); Publimetro, with and television. The other major editions in Mexico City, Monterrey group has been developed around and Guadalajara (2006); Más Folha, related to the Frías por Más in Mexico City (2009); family, which publishes the Folha PuntoMedio in Mérida (2009); de Sao Paulo, Agora and Valor El Nuevo Mexicano in Federal Económico. Other prominent District (2010) and 24horas with a groups are the RBS Group in Rio national circulation (2011). Grande do Sul with 4 newspapers,

COUNTRIES, TITLES, EDITIONS AND CIRCULATION OF FREE NEWSPAPERS IN LATIN AMERICA, 1999-2011

60 4000

Countries Titles 3500 50 Editions Circulation 3000

40 2500 Circulation

30 2000

1500 20

Countries, titles and editions 1000

10 500

0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Piet Bakker: “The rise of free daily newspapers in Latin America”, at http://udep.edu.pe/comunicacion/ rcom/pdf/2012/Art129-149.pdf 8 OVERVIEW OF LATIN AMERICAN PRESS THE PRE-INTERNET BOOM

including its flagship Zona Zero, established, so they invest in the and the Estado Group with O media because this gives them Estado de Sao Paulo. symbolic power, which in turn underpins their economic power In Mexico, the following groups are and they thus increase their prominent: El Universal Group, influence in the sphere of politics Image Group ―owned by Olegario and also their profitability”. Vázquez Raña, which controls Excelsior newspaper―, and In Argentina, the Clarín Group “In Argentina, the Clarín Organización Editorial Mexicana ― owns the daily newspaper Group owns the daily which is controlled by Mario Clarín, which was for many years newspaper Clarín, which Vázquez Raña, bringing together the most widely read Spanish- was for many years the some 70 printed media―. Then language newspaper in the most widely read Spanish- there are important local groups, world. La Nación, apart from the such as La Jornada in Mexico newspaper of the same name, language newspaper in Federal District, and Reforma also owns the local licences the world” and Milenio in Monterrey, Federal of publications such as Rolling District and Guadalajara. Stone, ¡Hola! and OHLALÁ.

In Colombia, the Santo Domingo In Chile there are three major Group controls radio and TV groups: El Mercurio, Copesa and Caracol, the daily El Espectador the Claro Group. in Bogota and prominent magazines such as Semana and El Mercurio is the largest Cromos. Furthermore, in 2012 the journalistic company with more Organisation of the Colombian than 20 national and regional entrepreneur Luis Carlos newspapers, including El Mercurio Sarmiento Angulo (OLCSAL) de Valparaíso, El Mercurio de purchased 55% of the shares in Santiago, Las Últimas Noticias, Casa Editorial El Tiempo from El Mercurio de Antofagasta, La the Spanish Planeta Group. This Estrella de Valparaíso, El Líder firm also publishes the economic de San Antonio and La Prensa specialist daily Portafolio and de Tocopilla. ten magazines. The Copesa Group controls several Juan Carlos Gómez, researcher names in radio, television and from the media observatory at Internet, as well as press, including La Sabana University, points out Pulso, La Tercera, La Hora, La that the interest observed in Cuarta, El Diario de Concepción, the past relationship between the magazine Qué Pasa, Paula, entrepreneurs and that sector BizHoy, Biut, Agrupémonos, Zoom of the press is linked with the Inmobiliario, Zoom Automotriz, “possibility of increasing their Promo Service and the radio sphere of influence and power”: stations Zero 97.2 and Duna 89.7, “Large economic investors among others. need backing to increase the influence they can bear on Finally, the Claro Group, named the societies in which they are after the entrepreneur Ricardo

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Claro, is behind Ediciones long-standing titles, they Financieras S.A., which owns have also put popular and Diario Financiero. The group also free newspapers on the owns Ediciones e Impresos S.A., market. This is the case of which publishes Revista Capital. Clarín with the popular daily Muy, El Tiempo with Hoy and In Bolivia, the Rivero family Copesa in Chile with La Hora owns the benchmark daily El (created in 2000). Deber and controls Periodistas “All these processes are Asociados Televisivos, nine The media conglomerate that occurring in a context of dailies in La Paz, Cochabamba publishes O Globo, the largest modernisation of what and Potosí, two radio stations paper in Río de Janeiro, were formerly companies and two television channels. launched its own tabloid, that had been owned for Extra, sold at 65 cents, while In Peru, the El Comercio Group O Globo was sold at US$ 1.15. generations by families owned by the Miró Quesada Following the launching of dedicated to journalism” family is the principal media Extra by Infoglobo, the RBS group in the country, with Group, a media conglomerate daily newspapers such as El from Porto Alegre, launched Comercio, Gestión, Peru.21 and Diário Gaúcho in 1998. Trome, along with its interest in television, through Grupo Plural The traditional media have TV, owner of Canal N and América also entered the free press TV, in which the La República business: Clarín took over La Group is a minority shareholder. Razón in 2000; Diario Hoy in Ecuador launched Metrohoy, In Venezuela, the largest two Metroquil and MetroCuenca, newspapers, El Nacional and the Copesa Group in Chile El Universal, are owned by the brought out La Hora; El Otero Silva and Mata families, Comercio in Peru is behind respectively. Publimetro; the Planeta Group, which owns the daily All these processes are occurring El Tiempo, promotes ADN in in a context of modernisation of Bogotá, Medellín, Cali and what were formerly companies Barranquilla; El Nacional that had been owned for in the Dominican Republic generations by families launched Última Hora; El dedicated to journalism. Those Día in Bolivia launched El families have now formed Sol; and El M was published business units which are run in Mexico by El Universal. using modern administrative and managerial methods. • Segmentation of the journalistic market —through specialist, For the time being, these groups sports, popular and free press— have opted for a triple strategy: as an option to focus on readers’ needs, make the press more • Diversification: while attractive and start publishing continuing to publish their brief, more local news.

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• Positioning in Internet, Although the number of since, as highlighted by digital readers is rising in some Latin press researchers Summer American countries —the most Harlow and Ingrid Bachmann: representative being Peru,where “A solution is sought in sales have grown by 55% in the Internet to the problems last 5 years from 1.2 million encountered as a result of copies sold to 1.8 million, the falling circulation and according to figures published smaller advertising income by KPMG—, the socially more “The circulation of of the press —Paterson and mature countries such as Brazil, printed newspapers Domingo, 2008—. However, Argentina, Colombia and Chile, grew by 0.1% in 2012 a recent report showed that with historically consolidated in Latin America” 20% of the digital journalism middle classes, are already in a initiatives in Latin America very different situation as reading do not make a profit — on Internet is rising steadily. That Fundación Nuevo Periodismo is the way Latin American press Iberoamericano, 2011—”. will go in the coming years.

By all accounts, as the middle 5. FUTURE OUTLOOK: classes in Peru and other countries LOSS OF READERS AND in the region become consolidated, DIGITAL CHALLENGE gain more purchasing power and start entering the world of Internet, The medium-term future of the the number of people who read Latin American printed press, newspapers online will rise. in around five years’ time, will be hit by (a) a loss of printed However, at least for the next press readers through migration few years, it looks more as if to Internet and, as a direct the different formats will be consequence of this, (b) the complementary, rather than boom in electronic media. some immediately substituting others, as highlighted by Juliana Loss of printed press readers Sawaia, Manager of Learning & Insights at Ibope Brazil. Broadly speaking and according According to this researcher, to the annual survey of World we are in the “tradigital” era Press Trends published by the in Latin America, in which the World Association of Newspapers penetration of electronic and News Publishers, the devices on the market leads to circulation of printed newspapers a diversification of multiple grew by 0.1% in 2012 in Latin formats for the distribution America —1.2% in Asia and 3.5% of contents and information, in Australia and New Zealand—, but where digital media now contrasting with a fall by 6.6% form part of the strategy in North America, 5.3% in West of traditional media and, Europe, 8.2% in East Europe as such, complement them, and 1.4% in the Middle East and promoting the consumption of North Africa. media in general.

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In fact, it must be borne in the penetration of Internet mind that the numbers of Latin has grown in the region and American online readers have is now over 50% in 4 countries “Whether complementary grown more than anywhere —Argentina, Chile, Uruguay or substituting the reading else in the world: 12% between and Colombia—, as shown in of printed press, there March 2012 and March 2013 — the graph, and over or around is a clear trend towards according to the annual analysis 40% in 8 countries —Costa increasing readership of made by the firm Pingdom Rica, Panama, Dominican and a report by ComScore—. Republic, Venezuela, Brazil digital press” In total there are almost 160 and Peru—. million netsurfers in the region, which puts Latin America in • Moreover, the infrastructures the forefront in the growth of are improving with a rise Internet users. It is followed by in broadband connections. the Asia-Pacific region with a 7% There is still considerable growth; Europe, with 5%; Middle room for growth in this aspect East-Africa with 3% then the because, as can be seen in the and Canada with following graph, despite having 1%. Yet in spite of the growth of increased by 20% in 3 years it is the Latin American audience, it still at 27%:. still only represents 9% of the global Internet audience. The digital challenge

Whether complementary or “The arrival of Internet”, as substituting the reading of pointed out by the editor-in-chief printed press, there is a clear of El País, Juan Luis Cebrián, trend towards increasing “is not a mere change in social readership of digital press: attitudes. It is a revolution of society and civilization on a par, • Because the number of in the history of mankind, with consumers is rising. In fact, the invention of the alphabet or

PENETRATION OF THE BROADBAND IN LATIN AMERICA (%)

70

60

50

40

30

20

10

0 Argentina Chile Uruguay Colombia Costa Panama Puerto Dominican Venezuela Brazil Mexico Peru Ecuador Paraguay El Bolivia Guatemala Cuba Honduras Nicaragua Rica Rico Republic Salvador Source: Latinoaméricalatinahoy

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printing. And journalism is right new package, which changed the in the thick of things”. audience’s behaviour again. Some websites now discover that 30% of Along the same lines, Francisco their entries come from Facebook, Miró Quesada, editor-in-chief of i.e. through the recommendation the Peruvian daily El Comercio, of a friend”, as pointed out by said during a meeting of the Latin Jean-François Fogel, a French American Society of Journalism journalist expert in digital media, (Sociedad Iberoamericana de who ran Le Monde.com and was “We can conclude Periodismo) that “Latin American adviser to Grupo Prisa. that access to Internet press is still enjoying a good changes reading habits” springtime, but it must not rest on Therefore, after two decades its laurels”. of development and due to the latest technological progress, Over the past 20 years, the digital we can conclude that access to press has been through three Internet changes reading habits. stages. A first stage in which its As Fogel also mentioned: “I might contents were put on line just like be wrong, but I have a feeling that any other distribution channel. the appearance of smart phones A second stage when Google is going to have a tremendous appeared on the scene in 1998 and impact in Latin America. In recent completely changed the behaviour decades, families living in the of the audience. And a third stage, poor, outlying areas of the large the current stage, marked by “the cities in Latin America who did appearance of social networking not have a house of their own (Facebook, Twitter), cell phones often had a television. That was a —mobility breakthrough— and way of feeling that they belonged YouTube; suddenly word gave to society. Well the same families way to image. All this made up a now have a cell phone. They will use that cell phone as a small computer and enter the digital PENETRATION OF THE BROADBAND IN LATIN AMERICA (%) world through that channel, rather than buying a tablet or a 30 computer, which are priced out of their reach”. 25 In this situation and apart from 20 certain exceptions, such as the daily newspaper Clarín, El Tiempo, La Tercera or Folha 15 in Sao Paulo, the digital daily of the El Comercio Group and 10 La Prensa in Peru, the printed press has not yet managed to 5 adapt to the new digital media. Bernardo Díaz Nosty, professor 0 at Malaga University specialising 2008 2009 2010 2011 2012 2013 in press, stressed that within Source: Wireless Intelligence

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the vast presence on Internet obtained in studies on the media of all kinds of daily newspapers of other western countries from Latin America, the editions —e.g. Hermida and Thurman, were essentially symbolic, 2008; Jönsson and Örnebring, with very little value added 2011—, which suggest that the in relation to the possibilities editorial staff still control what offered by the digital support news is published and how. The and falling far short of the codes potential for a greater inclusion of construction, legibility and of audience in the information design characterising the more process and more collaborative highly developed digital press. journalism is curtailed by “The potential for interactivity localised in the a greater inclusion Ingrid Bachmann and Summer hierarchy of the media. As of audience in the Harlow —the authors of a mentioned by Kim and Sawhney information process study on Latin American press (2002), users have little room and more collaborative on Internet—maintain that for reaction and the producers of journalism is curtailed by “the publication of contents contents make sure they hang on on Internet follows the logic to the decision-making powers”. interactivity localised in of duplication and migration the hierarchy of rather than adopting new All these processes —improvement the media” formats and when multimedia of the economic situation of the resources are used, it is for population with access to other, topics that lend themselves to more sophisticated and expensive this type of treatment. communication instruments and the “technological revolution”— Accordingly, the sections on will eventually encourage culture, entertainment and readers to migrate from printed sports include considerably more press to digital press. Moreover, photographs, image galleries the anticipated reduction of and videos than the rest, while readers will go hand-in-hand with the inclusion of audio clips is a reduction of advertising, since significantly more frequent in Internet has already begun to articles on politics, police & attract income from advertising. crime and education, especially Its share of all media advertising for witness declarations. Once rose from 1.6% in 2004 to 4.2% in again, the results suggest the first half of 2010, according that the media opt to use the to the Projeto Inter-Meios, web elements that are easiest which monitors expenditure to incorporate and do not in advertising. This increase especially alter the process of contrasts with the income from producing news… general advertising, which dropped from 16.6% to 13.4% According to our analysis of 19 over the same period. websites of the most emblematic Latin American newspapers, There is now even a rich, they offer a limited opening new experience in Latin to dialogue with users. These America regarding digital results are similar to those informative media. Some

14 OVERVIEW OF LATIN AMERICAN PRESS THE PRE-INTERNET BOOM

twenty news websites have Internet is non-existent in Latin been developed which operate America. To quote the assistant as digital journalistic media. editor-in-chief of the Argentinian These include Plaza Pública in daily La Nación, Fernán Saguier: Guatemala —two-third financed “Online websites represent a very by the University Rafael small percentage of the business: Landívar—, Animal Político and between 5 and 7 per cent”. Reporte Índigo in Mexico, El Faro in El Salvador, Confidencial —a There are several alternatives for “Payment for contents is portal in Nicaragua directed by the future development of the proposed as a very long- Carlos Fernando Chamorro—, different formats —traditional term alternative, since Verdad Abierta and La Silla Vacía press and the press arising in the that culture of paying in Colombia, Ciperchile in Chile, digital world—: for reading the press on Puercoespín and Chequeando in Argentina, Apublica in Brazil and • The segmentation and even Internet is non-existent IDL-Reporteros and Infos in Peru. hyper-segmentation of content, in Latin America” adapting to each user and However, the growth in digital endeavouring not to broadcast platforms is not being followed to an undetermined mass of by a parallel growth in advertising readers, but to each Internet income, so the printed dailies user in particular. “Therefore, will foreseeably not be able to it is not a collective message offset with Internet the loss of to be consumed on equal advertising income in their printed terms by a mass of receivers. editions or the drop in sales. On the contrary, it is a specific offer which each user will PwC says that advertising in choose individually to adopt the online editions of the Latin his decision-making or enrich American dailies will grow by his particular data bank”, 23.5% until 2016, three times assures Tatiana Hernández more than in the printed versions, Soto in her doctoral thesis: but with a much smaller cost of “Evolution of the principal advertising on Internet. general information digital newspapers in Latin The Achilles heel of online media America from the beginning is their inability to finance of the third millennium themselves, since the vast (2000-2007). The cases of majority have financial problems. Argentina, Chile, Colombia, According to a study published Mexico and Venezuela.” by the FNPI —Foundation of New Latin American Journalism— made • PCommitment to and further by Angel Alayón, 57% generate development of the use of the losses. Only 18.5% declared that tools available in the digital they had generated more income world, such as hypertext, the than costs. Payment for contents multimedia option, bonding is proposed as a very long-term together text, fixed image — alternative, since that culture of infographics—, sound —voice, paying for reading the press on music, special effects—,

15 OVERVIEW OF LATIN AMERICAN PRESS THE PRE-INTERNET BOOM

moving image —animation, Its secret lies in offering videos— and interactivity an enormous amount of between the transmitter and localism, with editions the receiver. adapted to each segment. That formula is repeated As Tatiana Soto points in Colombia through the out: “The digital design is newspaper alliance Grupo still faced with a number Nacional de Medios (GNM), of technical limitations. which founded the popular “The ground already The ground already daily Q’Hubo. covered by the websites covered by the websites of some traditional Latin of some traditional Latin • Another development vector American newspapers American newspapers is must be to take advantage is a good starting point, a good starting point, of the synergies among me- but there’s still a long dia in the region that share but there’s still a long way to go. New expertise the same language. way to go” needs to be introduced. It is unarguably necessary According to Díaz Nosty: to make further progress in “the supranational poten- the interdisciplinary work of tial of the benchmark press journalists, editors, designers, in a cultural space where photographers, infographic there are barely any lin- designers, etc., as well as in guistic barriers is extraordi- the executive vision of this nary, but for the time being new challenge for journalism. communication permeabil- In short, newspapers need ity is very low, so the me- to assess and understand dia frontiers coincide with the real repercussions of the the national geographic new platform”. boundaries. There is no con- spicuous experience of col- • One possible solution that laboration among publishing is being tried and tested companies or supranational to cope with the falling projects. The first supple- numbers of printed press ment distributed simultane- readers is the idea of ously by daily newspapers of focusing on the development different nations stemmed of content as a “formula for from a North American ex- survival” and to attract more perience, of the New York readers. There are already Times. Perhaps the most experiments along these advanced initiative may lines, such as the newspaper arise from Grupo de Dia- Zero Hora, which has 19 rios América, which has sections, daily theme-based 11 newspapers in 11 Latin supplements and content American nations with a especially targeting young circulation of 1.5 million people —53% of its readers copies a day, which share are less than 40 years old—. and offer joint resources”.

16 Leading Communication Consultancy in , and Latin America

LLORENTE & CUENCA is the leading communication consultancy in Spain and Latin America. It has fifteen partners and over 300 professional employees who provide strategic consultancy services for companies in all sectors of activity, with deals aimed at the Spanish and Portuguese-speaking population.

At present the firm has offices in Argentina, Brazil, Colombia, China, Ecuador, Spain, Mexico, Panama, Peru, Portugal and the Dominican Republic. We also render our services through associate companies in the United States, Chile, Bolivia, Portugal, Uruguay and Venezuela.

Through its international development, in 2010 and 2011 LLORENTE & CUENCA was recognised as one of the fifty most important communication compa- nies in the world, as reflected in the annual ranking published in The Holmes Report. In 2013, it is ranked 51st, one position ahead of 2012.

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CORPORATE MANAGEMENT LATIN AMERICA Panama

José Antonio Llorente Alejandro Romero Javier Rosado Founding Partner and Chairman Partner and CEO, Latin America Partner and Managing Director [email protected] [email protected] [email protected]

Enrique González José Luis Di Girolamo Avda. Samuel Lewis. Edificio Omega, piso 6 Partner and CFO Partner and CFO, Latin America Tel: +507 206 5200 [email protected] [email protected] Quito Jorge Cachinero Antonio Lois Corporate Director for Reputation and Innovation Regional HR Director Catherine Buelvas [email protected] [email protected] Managing Director [email protected] IBERIA Bogota Av. 12 de Octubre 1830 y Cordero. Arturo Pinedo María Esteve Edificio World Trade Center, Torre B, piso 11 Partner and Managing Director Managing Director Distrito Metropolitano de Quito (Ecuador) [email protected] [email protected] Tel: +593 2 2565820

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