Grupo Globo’s managing director discusses media challenges and transformations

Frederic Kachar, managing director for print media and radio at Grupo Globo in Brazil, shared insights on the growth and challenges faced by the media company in a recent conversation with digital media consultant Mark Challinor for The Drum. With a background in economics and rigorous experience within the media sector, Kachar’s leadership at Grupo Globo has seen significant transformations and adaptations to modern media trends.

Reflecting on the challenges of 2023, Kachar noted that five years ago, Grupo Globo took steps to balance its revenue streams between subscriptions and advertising. He reported that advertising has shown unexpected resilience, “Traditional print advertising has surprisingly started to grow since last year, driven by branded content,” he stated, highlighting how companies are increasingly using print to engage with national issues and conversations. Moreover, events have emerged as a crucial revenue source, with Grupo Globo hosting over 80 events annually, including prominent and international gatherings like the United Nations Climate Change Summit held in New York.

However, Kachar acknowledged that the subscription model has stagnated, mentioning, “Since 2022, our total subscription volume has stagnated.” He indicated that price adjustments have provided some growth, but the long-term viability of a premium newsroom relies on finding ways to enhance consumer revenue. The challenges surrounding traditional subscriptions come amid a landscape where advertising cannot singularly sustain the business.

As the media company shifts its focus towards diversified revenue streams, Kachar elaborated on an evolved sales team that now incorporates the sale of events, education, e-commerce, and content alongside traditional advertising. “What was once an advertising team is now a business team,” he explained, reflecting on the investment in training aimed at fostering a consultative approach to client engagement. This transformation necessitated both retraining existing staff and recruiting talent equipped with the new skill sets required for a changing media environment.

A significant aspect of Kachar’s focus is the influence of artificial intelligence (AI) on Grupo Globo’s operations. He described AI as a double-edged sword, presenting both opportunities and threats. “AI boosts productivity and enables new product launches,” he remarked, mentioning the recent initiative to utilise AI in translating the Valor website into English. However, he expressed concerns over copyright issues arising from unregulated AI use, noting that some websites generate content by repackaging Grupo Globo’s own outputs, which poses significant challenges to intellectual property rights.

Kachar further discussed the evolving role of print within the media landscape, asserting its importance in delivering branded content and opinion pieces. He noted that during debates surrounding Brazil’s tax reforms, print served as a vital platform for companies and associations aiming to influence public discussions. While Grupo Globo continues to explore various revenue avenues, including podcasts and education programmes designed for professional development, Kachar remains aware of the precarious future of print media.

Looking ahead, Kachar is cautious yet optimistic about the potential of new revenue streams, including e-commerce and licensing. He acknowledged that while leveraging their women’s brands in beauty products and parenting initiatives is still in its early stages, the company anticipates these avenues to be fruitful in the near future.

Kachar identified AI and shifting audience demographics as critical challenges facing traditional media firms today. He underscored the importance of rapid productivity gains to keep pace with competitors while navigating the evolving landscape of audience engagement, particularly as consumers migrate from web platforms to mobile applications.

In summarising the current state of the media industry, Kachar pointed to news fatigue and audience distrust as mounting issues. He expressed concern over how to strike a balance between informing audiences and preventing them from feeling overwhelmed by constant news cycles.

Despite the prevailing challenges, Kachar noted that Grupo Globo has seen consecutive years of revenue growth since 2020. “We’ve successfully developed new revenue streams,” he explained, highlighting the company’s adaptability as crucial to navigating the contemporary media landscape.

In concluding their discussion, Kachar identified the dual pressures of AI and cultural polarization as persistent concerns but reiterated that the company’s adaptability and recent successes provide some reassurance amid ongoing uncertainty.

Source: Noah Wire Services