Digital Transformation and Its Impact on the Management and Financing of Egyptian Newspapers- An empirical Study on the Communicator

This study examines the impact of the "digital transformation" on the administrative and financial processes in Egyptian newspapers, with their various ownership patterns known in Egypt: national, independent, and partisan. The press industry in Egypt and around the world faces numerous challenges that have led to many established newspapers either ceasing publication, merging with others, or relying solely on electronic versions and ceasing print publication. This means that the press industry faces real risks unless its operating systems keep pace with the digital transformation and changes taking place in the reader and advertiser markets alike.
The study used the survey method to obtain information by conducting in-depth interviews with a group of communicators, including journalists and leaders of journalistic and administrative work in various newspapers.
Five themes were identified in the interviews with the respondents to capture their perceptions of the following topics: digital transformation, its necessity, and newspapers' readiness for it; its impact on the financing, management, and organization of journalistic work; the extent to which newspapers can leverage artificial intelligence; and the communicator's vision for the future of the journalism industry in the face of digital challenges.
The study concluded with a set of findings, most notably: Journalists and administrators of all levels and categories clearly understand the nature of digital transformation and its advantages in terms of saving time and effort (35.5%), speed of work (34.9%), and keeping up with new developments in the workplace (29.4%). Respondents believe that newspapers are paying attention to the use of digital transformation technologies (62% sufficiently, 34% insufficiently).
The study found that the most prominent reasons for the decline in newspaper revenues are: changing reader habits and their shift towards electronic alternatives (28.17%), followed by economic conditions and poor product quality (25.4% each), and then in fourth place, the lack of development in distribution and advertising departments (21%).
The most prominent challenges hindering digital transformation from the perspective of the communicator group are: the lack of financial capabilities (60%), then the lack of human preparedness (22%), and in third place is the lack of management interest (18%).
54% of the communicator group reported their rejection of a repeat of the experiment of halting print newspapers and converting them to electronic versions, while 42% expressed their approval of the idea, subject to conditions, most notably that the decision be subject to an economic vision. Four percent took a neutral position. Conversely, the idea of ​​merging newspaper publications received clear relative acceptance, with 52% expressing their approval of the idea, compared to 42% who expressed their rejection, while 6% took a neutral position.
The study revealed a pessimistic view among communicators regarding newspapers' ability to develop a new funding model. 52% believed that newspapers had not yet been able to develop such a model, while 24% denied any knowledge of the extent to which newspapers were capable of doing so. This brought the percentage of skeptics of newspapers' ability to rise to 76%, compared to 24% who believed that newspapers had succeeded, based on some of the experiences they had already had.
38% of respondents believed newspapers could sell their content through digital subscriptions or a Paywall system, while 30% believed it was not possible. 20% indicated that it was not currently possible but might be possible in the future, while 12% said they were unaware of this system. All of the above means that approximately 62% of journalists and newspaper staff believe it is not possible, compared to 38% who believe it is possible.