In case newsagents needed clarity of the impact of online advertising on print read this about the Trading Post :
As at 30 June 2007 the carrying value of the Trading Post mastheads was tested for impairment based on value in use. This test resulted in an impairment charge of $110 million being recognised in the financial statements. The impairment arose as a result of increasing competition in the traditional print classifieds market, challenges in the highly competitive on-line classified market and the risks associated with new initiatives.
A note on page 3 of the preliminary financial report for Telstra for the year to June 30, 2007 published yesterday.
On page 82 of the 304 page document is this:
Mr Trujillo said Trading Post print classifieds disappointed due to the rapid changes in the market, while online classifieds continued to grow.
Newsagents need to change their businesses just as Telstra is changing focus at the Trading Post.
Interestingly MPA suggests the opposite according to a PWC report. Someone is doing some lovely mathamatics!
Follow this link.
http://www.magazines.org.au/driver.asp?page=mpa/news/latest+news/magazines+move+up+in+a+more+competitive+market%3Apwc
Brett – ah numbers! I accept the accuracy of the PWC data. What is happening is that revenue is shifting between categories. Also, cover price increases account for some of this. Plus new titles. The telsra data on Trading Post is, well, bad news. Mark