ICT CS Owalo calls for media to diversify revenue streams

ICT Cabinet Secretary Eliud Owalo has expressed concern over the excessive amount of money the government allocates to advertising revenue.

Owalo says he is planning to re-engineer the advertising space to reduce costs, while emphasizing the need for media outlets to diversify their revenue streams.

At a recent address to the media, Owalo expressed his dissatisfaction with the substantial expenditure incurred by the government on advertising, particularly in print media.

He cited the example of the ‘mygov’ State publication, which the government had been spending approximately Ksh.60 million to print. However, Owalo highlighted that a state agency could reproduce it for a mere Ksh.3 million.

“I don’t see why the government should continue spending the amounts of money that it has been spending on advertising revenue,” stated Owalo. “We are going to re-engineer that space in the not-so-distant future, but we are not against the media.”

“Anything I do as the ICT CS must make sense from a business perspective. I won’t continue spending that large amount of money on advertising revenue in this digital age. It doesn’t make sense to me, and once I get approval from relevant levels, I will definitely introduce certain changes.”

Owalo emphasized that the current digital era requires adaptability and urged media outlets to evolve their business models to remain sustainable. He emphasized that relying solely on government revenue was an outdated approach and encouraged media organizations to explore diverse sources of income.

“You cannot continue doing your business the way you used to do before,” Owalo emphasized. “We are in a digital age, and you cannot look at the government as the single source of revenue for the media.”

“You have to adapt to change. We are in a digital economy; you cannot continue doing your business the traditional way and expect solely to rely on government revenue. You are getting it wrong.”

Owalo’s comments come at a time when the media industry is facing increasing financial challenges. The rise of digital media has led to a decline in advertising revenue, and many media outlets are struggling to stay afloat.

Owalo’s call for media outlets to diversify their revenue streams is a timely one. In order to survive in the digital age, media organizations need to find new ways to generate income. This could involve expanding into new markets, developing new products and services, or finding new ways to monetize their content.

The future of the media industry is uncertain, but it is clear that those who adapt to change will be the ones who survive.