WORLD PRESS TRENDS - World Association of Newspapers

ARMENIA
Commentary - IREX/ProMedia
The Armenian news media are moving towards true financial
independence, but they are moving slowly.
The immediate situation of newspapers provides some insight.
Most Armenian newspaper editors report that they benefited
greatly from the 2002-2003 national election cycle, which began
in October 2002 with local government elections and continued
through the February 19 presidential elections and the
Parliamentary elections on May 25, 2003.
Many say they received money for political “advertising.”
Unfortunately this takes the form of “tsakazugha,” or articles
written to order. This has had a dramatic effect on editorial
content. Most newspaper editors said they expected to increase
their income, but after the election cycle, some fear they will
fall on hard times and some foresee a contraction in the market
for printed news media. An editor who was previously known
for refusing to accept advertising recently asked about ad sales
techniques.
The election cycle brought several new entries to the newspaper
market, primarily to provide political figures with information
tools and propaganda forums. It also provided an opportunity
for some newspapers to increase their circulation and the
frequency of their publication.
While most newspapers are increasing the amount of
advertising they carry, some are moving more quickly in that
direction than others. They know that their long-term survival
depends on operating as a viable business, not as a propaganda
sheet for a political party or influential individuals.
Several newspapers have dramatically increased their
advertising content. Most notable are Novoe Vremya and Iravunk,
as well as the centrist Azg daily. Novoe Vremya, a Russianlanguage
broadsheet published twice a week, increased its
advertising content from an average of 10%-15% in 2002, to 20%-
30% in 2003. This is due to a decision by editor Ruben Satyan to
hire an advertising sales staff and to begin printing a full page
of classified advertising.
In a recent issue, Novoe Vremya ran a full-page advertisement
by an estate agency and then a half-page advertisement from
an Armenian airline announcing new flights to Moscow. Satyan
said it was part of a long-term advertising contract. Over the
last year Novoe Vremya has increased its circulation by about
3,000 copies to nearly 4,000, and it plans to begin publishing
three times a week soon.
Iravunk, which is opposed to the administration of President
Robert Kocharian and is by far the most popular newspaper in
Armenia, is an arm of the opposition Constitutional Rights
Union party. It averages from 20% to 30% advertising, which is
about 10% more than it carried a year ago. In early October
2002 the publication contained 40%. The editor claims the
newspaper is profitable and generates revenue for the party.
Azg has experienced an advertising increase of between 5% and
10%, but still averages only about 15% advertising.
Aravot, another opposition daily, normally fluctuates between
12% and 15% advertising, but occasionally has up to 25%. More
than a year ago, Aravot began to print a colour cover one day a
week in order to attract colour advertising. The editor reports
this was a profitable move. Aravot is the only newspaper in
Armenia to print in colour.
Delavoy (Business) Express, a Russian-language weekly,
continues to lead the field by averaging about 50% advertising.
Delavoy Express and several other publications are popular
because of their extensive classified advertising. One mid-
October edition of Delavoy Express contained 65% advertising.
The newspaper recently began publishing twice a week, and
now appears on Wednesdays and Saturdays.
Progress towards financial independence is hindered by four
factors:
First, the general economy of Armenia, while improving, still
does not function like a typical market economy. Advertisers
see little need to advertise because most have few rivals to worry
about.
Second, there is no tradition of advertising and newspapers are
extremely politicised. Unfortunately, advertising in a
publication is considered a political decision, not a business
decision.
Third, television advertising is very cheap compared to
newspaper advertising, while offering a much wider reach.
Fourth, what can be characterised as the force of inertia, which
is a deeply rooted cultural resistance to change.
But the situation is changing. A 2002 survey showed that
newspaper readership is stronger than once thought. The survey
showed that while less than 5% of the population buy
newspapers as their primary source of news, more than 50%
read newspapers at least occasionally, and these readers use
newspapers as their second or third source of information and
news.
The survey was conducted nationally, and concentrated on
readers in the major population centres of Yerevan, Guimri,
Vanadzor and Kapan. The survey suggested that while actual
copy sales may be very low compared to the population,
readership is broad and newspapers do exert considerable
influence on the government, business, and the community at
large.
Distribution
The distribution system on which all newspapers used to
depend, Hymamul, has finally been privatised – a process that
has been delayed for the past two years by political interference
provoked by newspaper editors. The break-up of Haymamul
has created eight new companies specialising in newspaper
distribution on a small scale. It appears that market forces are
at work and private businesses are moving to meet the need.
However, most newspapers still depend on the state-owned
distribution system, which consists of more than 200 kiosks.
The best kiosks have been sold to private operators, which now
sell cigarettes and other items as well as newspapers. Most
editors are now seeking alternatives. Under the privatisation
scheme kiosks are required to sell newspapers for five years,
but many editors fear the kiosk may stop selling newspapers
after only a year.
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 45