Indicators

As the media plays a crucial role in shaping public opinion and disseminating information, understanding the financial viability of media outlets is essential. The Global Media Finances Map has been designed to shed light on this important aspect. The data collected during this research provides valuable insights into the financial health of the media in various countries. One significant added value of the project is the creation of a new set of indicators that can be used to assess financial viability, wealth concentration and financial risks in the media sector.

Research approach

The research has three components, each aimed at gathering specific data that would contribute to an in-depth understanding of the financial viability of media outlets.

1: Data Collection

The initial stage involved the collection of data pertaining to the financial aspects of the media in different countries. This included information on the turnover of media companies, profitability, costs/expenditure, staff numbers, market value, and indebtedness rate in the news media sector.

2: Indicator Creation

Following the data collection phase, a series of indicators were created to describe the financial viability of the media in a given country. These indicators provide a holistic view of the economic aspects of the media industry and include:

  • News Media Domestic Product (NMDP): This indicator represents the total value of news media production and is calculated as the sum of the turnover of all media companies in a particular market.
  • Average Profitability: Calculated as both an overall sum and a mean value of the profit figures of all companies, this indicator provides insights into the financial success of media outlets.
  • Average Costs/Expenditure per News Media Outlet: This indicator offers an understanding of the average financial outlay required to sustain a news media outlet.
  • Average Staff Numbers: Providing insights into the workforce of news media outlets, this indicator sheds light on the employment aspect of the industry.
  • Average News Media Operation Market Value: This indicator represents the average market value of news media operations, providing insights into the economic significance of media outlets.
  • Average Indebtedness Rate: Offering an understanding of the financial liabilities of media outlets, this indicator is crucial in assessing their financial health.

3: Analysis and Implications

The collected data and created indicators can be used and analyzed to draw meaningful conclusions and implications. The insights gained from this analysis can be used in various ways:

  • Policy Formulation: Governments and regulatory bodies can utilize this data to formulate policies that support the financial sustainability of media outlets.
  • Investment Decisions: Investors and stakeholders in the media industry can make informed decisions based on the financial indicators, leading to more robust and sustainable investments.
  • Industry Benchmarking: Media companies can benchmark their financial performance against the indicators to identify areas of improvement and ensure long-term viability.
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