Communications Minister Stephen Conroy said the federal government decided to give the free to air TV networks a $250 million discount on licence fees because they are in terminal decline. While the networks deny this (see The Australian report on this today), it’s what the government believes.
The challenges for newsagents are as great:
- In 1999 the federal government facilitated the removal of the newsagent monopoly over the home delivery of newspapers.
- During the 2000s some publishers and magazine distributors actively cultivated direct relationships with petrol, convenience and supermarket retail channels.
- In 2009, new newspaper contracts further reduced the commercial security around distribution newsagencies.
- Newsagents rely on printed products, newspapers and magazines, for more than half of all foot traffic. This is stagnant and, in some niches, in steep decline thanks to new technology like e-readers and smart phones.
- Devices like the iPad and, more importantly, what will follow, will seriously challenge the newsagency channel.
- Environmental concerns are changing practices in newsagencies.
- Newsagent suppliers have set a new benchmark on minimum standards. To meet these standards, newsagents are having to increase their investment in business infrastructure.
- To compete, newsagents are having to enter into new business areas.
Newsagencies are fundamentally changing and while this is good, it has a significant short to medium term cost. The same as Conroy sees for the TV network.
Newsagents have a strong case when considering the Conroy benchmark for financial support. Further, pharmacies in the 1990s set a precedent, receiving federal government compensation for channel consolidation.
A government concerned about small business would know this and would be on the front foot to offer support. Instead, they focus on the big end of town.
Could not have put it better Mark !!
As has been the problem since day dot, three TV networks getting together and crying poor as apposed to thousands of individual small businesses all saying different things, it is easier to keep the minority happy.
National unification is the only way this will change but again everyone is having a different gripe, so nothing is changing. Some newsagents think deliveries are the main problem, some say wages are the main concern, others have seperate concerns so until we get behind one cause as a unit no one will listen.
Until we all belong to one body then we will not be heard, It may not have to represent ALL newsagents, maybe only it’s memebers but like the chemists and farmers the more members the larger the voice, but it has to be national.
“A government concerned about small business “
I’d like to see that!
as nice as it would be, i dont think we need a cash handout, what we need is for the govt to look at how some of its decisions adversly affect small business generally and newsagents in particular, ie new labour market legislation, the abuse by Aust Post that no longer has to abide by its charter, govt red tape and compliance costs, abuse of the system by some suppliers (mags) etc. Positive changes to these areas would have a long term ongoing real benefit for the newsagency channel. A cash handout would allow some capital investment, but i suspect most would disappear without making a real difference to the long term sustainabilty of the channel. But if they wont look at some of these issues then give me the cash, i need a holiday.
250 million would be enough money to give every citizen of Australia an eReader of some sort – whether an iPad, a Kindle, or something. And pay for the device to have basic internet access 24/7 (for the purpose of downloading new magazine/news content).
All a newsagent would have to then do is sell magazine issues or subscriptions just like they do now. Sure some might argue that in that environment newsagents would be un-necessary and people could just subscribe themselves, but I say why not. It makes more sense than dropping 250mill on TV networks.
But on a side note I didn’t think the 250mil was supposed to be for proping up a dying industry. I thought it was supposed to be for helping them transition to digital? (So the gov can then make more money again by selling off the old analogue spectrum)
The difference is that if channel 7 goes broke it is a big deal for every TV watching person in Australia. If the newsagency industry goes broke, most people get over it pretty quickly (except those who own newsagencies).
Sorry, it won’t happy. You guys don’t influence election results like the electronic media does !!!
Hell – we aren’t even the print media!
How much $$$ do we support ALP last election? $100,000 , $1M?
Brrowser,
If every newsagent pitched a united view acrodd our counters attacking this move from a small business perspective we would see engagement like we have never achieved before.