The Indian government's recent decision to raise advertising rates for print media by 26% has ignited a debate on the survival of traditional news organizations. Announced as essential revenue support to sustain operations and quality journalism, this move is widely seen as a quick fix for a deep, structural crisis. The real battle is not just about rising costs, but an existential fight against the tidal wave of low-cost, AI-generated content and the overwhelming dominance of global digital platforms.
The Attention Economy: A Shrinking Pie for Print
Advertising expenditure is a powerful mirror of a nation's attention economy. In India, this landscape has undergone a seismic shift. The total size of the Indian advertising industry is estimated at a staggering ₹1.55 trillion, encompassing direct spends from the unorganized sector and SMEs on digital platforms. The distribution of this massive pie tells a grim story for legacy media.
In 2024, digital media captured more than half of all ad spends. Precise estimates place digital advertising between ₹75,000 to ₹85,000 crore. Television followed with ₹36,000-40,000 crore, while the print medium managed to secure only ₹16,000-20,000 crore. This year, digital's share is predicted to have grown even larger, further squeezing traditional broadcast and print revenues.
Big Tech's Stranglehold and the AI Onslaught
The situation within the digital advertising bucket is even more skewed. A colossal 75%-80% of all digital ad spending is cornered by just three giants: Google, Meta (Facebook, Instagram), and Amazon. The remaining fraction is split among countless content creators, with legitimate journalism platforms receiving a minuscule share.
This financial muscle allows these tech behemoths to invest heavily in future-ready technologies, including artificial intelligence (AI) and Large Language Models (LLMs). Today, automated systems can write news, edit video, and create hyper-realistic imagery at a fraction of a traditional newsroom's cost. This unleashes an infinite stream of low-cost content that floods social feeds and search engines, masquerading as news and stealing both audience attention and vital ad revenue.
Beyond Business: A Democratic Imperative
The crisis transcends mere commercial competition; it strikes at the heart of democratic discourse. A functioning democracy relies on journalism that undergoes editorial rigor, distinguishing it from viral, emotion-driven content. The current model, where distribution platforms monetize the hard work of newsrooms without fair compensation, is unsustainable.
The revenue disparity is stark. In FY24, Google and Meta earned over ₹31,000 crore and ₹23,000 crore respectively in ad revenues from India. In contrast, even relatively large Indian news media companies saw revenues hovering between a mere ₹1,200 and ₹1,800 crore.
Experts argue that the 26% rate hike is an inadequate remedy. The need of the hour is not stop-gap measures but a comprehensive regulatory framework. Countries like Australia, Canada, and several in Europe are leading the way. Australia's News Media and Digital Platforms Mandatory Bargaining Code is a prime example, forcing platforms to negotiate fair revenue sharing with publishers. Canada's Competition Bureau is also investigating how AI and vertical integration by big tech create monopolistic risks.
For India, which once relied on these companies to build its internet ecosystem, the time has come to correct the imbalance. The goal must be to craft a policy intervention suited to India's specific needs, ensuring that the pillars of a free press and quality journalism do not crumble under the weight of technological disruption and market dominance.
