With the term 'Dual Economy' we can guess that it may deals with the finance or marketing related aspects especially what the word economy signifies. Since we are from the generation of e-papers and refers various websites to get updates of every single minutes about our surroundings and abroad anywhere across the globe. Beyond this if we look at the habit of reading newspapers regularly then even now we can find every morning the traditional system with which a true reader starts his/her day i.e.the paper boy with the bunches of papers knocked down the door and it has a seperate base of happiness for the actual readers to see & collect the newspaper first from the garden or balcony.
Apart from these light nostalgic talkies about newspapers let's come to fact what dual economy implies when it comes to newspapers. Basically newspaper, nowadays is considered a parameter of public attitudes, a consideration of importance in accessing social change-
was only a source of communication in the earlier days. The pre-independent Indian papers use to impart the zeal of nationality and the message of those contemporary national leaders but after independence the newspaper organizations have been transformed into an industry and became a machinery for making profit.
When a newspaper have to invest a huge amount of money, they must have several plans to earn the revenue and get maximum return.
Newspapers earn revenue mainly in two ways-
1.From circulation- By selling the publication.
2.From advertisement- By selling the ad space in the publication. These two are the broad categories of revenue earnings for a newspaper.
In the business concerning part of ewspapers, the price charged from a paper is less than the cost of its production. This clearly signifies the fact that whatever the profit a newspaper industry earns, do not depend on the price at which it solds the paper; greater the number of copies sold, the more is the loss. To cover-up this loss sufficient advertisement must be gathered.
Thus, increase in the circulation will only increase a newspaper's dependence on advertisements. Hence every owner and editor has to understand strategies to make a good sell of newspapers and this is possible mainly with a good editorial page , which determines the popularity of a paper & depicts a good journalism. At the same time it is also very true indeed that without adequate advertisements, a newspaper cannot survive. So, a good balance has to be maintained between the circulations & advertisements as well to maintain the equilibrium of dual economy.
