The National, City 7 TV and the Quest to Make Media Profitable via Digital

Both The National and City 7 TV will be letting go of many editorial staff as they look to restructure (image source: Arabian Business)

The past couple of weeks has been tough for many colleagues in the UAE media industry. First, information was leaked about job losses at the Abu Dhabi-based, English language daily The National.┬áThe reported job cuts follows five months after the paper’s purchase by International Media Investments (IMI), a subsidiary of private investment firm Abu Dhabi Media Investment Corporation (ADMIC) from state-owned Abu Dhabi Media Company (ADM). At least a quarter of the editorial staff will be leaving The National by the end of June 2017, as the paper’s owners support a “digital transformation” at the paper.

“As part of this transition, over the past few months, IMI has finalised its new vision for The National, supported by a robust editorial strategy to ensure that The National fulfils its potential as a premier English language source of news about and for the Middle East,” a spokesperson told the AFP.

Abu Dhabi Media Investment Corporation also owns a majority stake in Sky News Arabia, and a project team has been set up to aid the “digital transformation” at The National.

The second news story over the past week were job cuts at Dubai-based English language television channel, City 7 TV. The channel has been sold by BinHendi Enterprises to WeTel-TV, a TV platform for global educational news and current affairs. A number of the editorial team have left as the channel focuses on education.

For many media outlets, the focus is increasingly on profit. In a region which is going through austerity, and where media ownership is primarily in the hands of government (for newspapers and television at the very least), there seems to be a rethink among many outlets as to how to reduce costs. As with every other region, digital is waved as the answer. However, even global titles such as the Wall Street Journal, the New York Times, and the Daily Mail have struggled to turn a profit online. Digital revenue streams simply aren’t going to replace lost print advertising any time soon.

The other question that The National’s media owners need to ask is how will the loss of so many journalists impact editorial quality? When it comes to media consumption, online is no different from offline; readers want good content. How that content is delivered is obviously different, but the demand for good media will remain. And will there be a logical approach to a “digital transformation”, that combines both The National’s quality copy with the multimedia abilities of Sky News Arabia? An Abu-Dhabi based rival to AJ+ would be an exciting proposition, and I hope that The National has a strong digital enabler at the helm.

Whatever happens with both publications, my thoughts are very much with those people who are leaving. I hope that you’ll find new employment soon.