Like most counters, SPH share price is taking a beating. Analysts are predicting 1.50 as a possibility. But unlike other counters, SPH will struggle to recover, long after the pandemic is over. Newspaper advertisers who have stopped advertising this period may never return after getting accustomed to not relying on print. As it is, print advertising revenue has been on sharp decline even before the pandemic. The reality is no one, with the exception of a few die hards like retirees, is reading newspapers anymore.
Take for instance the pandemic. During this period, we are relying on social media and online platforms to get the latest updates. Foreign news portals like South China Morning Post provide more incisive and critical reporting than the Straits Time and Zaobao. Local portals like Mothership have up their game and are producing quality journalism, putting its views across, and asking tough questions of the government, such as should a general election be held in the midst of a health crisis, something the mainstream media like SPH is incapable of doing.
One of the haunting outcomes of this prolonged crisis for SPH is Singaporeans will become even more adept and comfortable in getting their news and opinion pieces from online sources other than the local mainstream media. This is a double whammy for SPH when both advertisers and readers wake up one day and realise they can do without the Straits Times, Zaobao and all the other papers. Despite SPH's efforts in recent years to come up with their own online edition of the hardcopy, the content remains more or less the same and are not getting traction with the younger generation. Therein, lies the big problem for SPH.