Print journalism faces a new challenge as printing costs are set to soar

Printing costs are predicted to increase by up to 80 percent by mid-December, prompting a new crisis for print journalism at a time when the distribution of newspapers is already declining in Egypt.

The state-owned Al-Ahram print house, the publisher and distributor for the country's largest newspaper, announced the increases in a letter sent to a number of other publications, which Mada Masr obtained a copy of. The memo cited the devaluation of the Egyptian pound as the reason for the hikes, as it has raised the cost of printing materials, particularly as they are largely imported from overseas. It also mentioned the increased costs associated with running an office, such as electricity hikes.

“We have had to bear the burden of all this in the past months, and due to these circumstances, which are very heavy on us, we are sorry to ask you to bear some of the burden of additional costs,” the letter read.

According to a recent study by the state-run Central Agency for Public Mobilization and Statistics (CAPMAS), newspapers are suffering from a notable decrease of 14.4 percent in sales and distribution.

The chief editor of the privately owned Al-Shorouk newspaper, Emad Eddin Hussein, told Mada Masr the announcement reflects how deep the crisis is for print media. “Newspapers will have to raise their prices sooner or later, which will result in lower distribution, which is already decreasing,” he explained, suggesting, “We have to offer more paid electronic content. There has to be a general atmosphere that allows journalism to create content that is more attractive to the reader, content that can push the reader to buy newspapers.”

Several newspapers have already started applying a number of austerity measures, Hussein wrote in his daily editorial. “These have included cutting salaries, laying off staff, or both. Everyone has paid the price, from the newspaper owners to the lowest paid workers. The cost is greater for young journalists who are already ground down,” he said.

Former CEO of Al-Masry Al-Youm newspaper Sherif Wadoud explained that the floatation of the pound has had an obvious effect on costs. “Most of the printing costs are for the paper itself, which is around 70 percent of the total cost. The rest is spent on ink, spare parts, paying for labor, electricity and other costs.” If the cost of printing one newspaper is one pound, it is now LE1.7, in addition to increases in the prices of electricity and spare parts, let alone circulation costs, Wadoud added.

After the announcement, newspapers may raise their prices per issue to LE4, from the current price of LE2, which is already high, in comparison to other countries, he explained. “Let’s measure this against the price of a loaf of bread. The current price of the newspaper is equivalent to eight loaves of non-subsidised bread, and 40 loaves of subsidised bread. With the expected increases, a newspaper issue will cost 80 loaves of subsidised bread. In Lebanon, a newspaper is approximately equal to the cost of four loaves,” Wadoud asserted.

But print media is also facing an existential crisis concerning content, Wadoud explained. “Online, the reader has the chance to look at articles, read them, or decide that the news items do not deserve reading. Online media also gives you the opportunity to look at video clips and interactive stories.”

“It is difficult to see someone below 40 years old buying a newspaper in Egypt,” according to Wadoud, who estimated that around 20,000-30,000 readers used to buy newspapers. Although he thinks some of them will remain loyal to the habit of doing so, many will not.