Reports over the last couple of days indicate that Fairfax is in play, again. This time it’s Gina Reinhart and John Singleton. It will be interesting to see how this plays out.
The recent history of millionaires and billionaires getting involved in media ownership has not resulted in good outcomes for consumers and those working the the organisations. The Fairfax print business has already been gutted and is struggling with the loss of many good journalists.
Reinhart has little connection with real Australia and as her writings show she has little understanding of what is good for the country. John Singleton owns the station that gives us Alan Jones. That he permits Alan Jones to rant on radio and wreak the damage he does makes me worry for Fairfax and its media outlets.
While I am jumping to conclusions here that go against the Singleton statement a couple of days ago, actions do speak louder than words.
Heard Singo already wants to rename it in a more Ocker slant to The Bloody Sydney Morning Herald
Wasn’t there once a political party led by Singo called the Australian Workers Party in the mid seventies that put Genghis Khan to shame with its extreme policies.
Yes there was Peter. Basically a staunch liberalism/capitalism platform. I get the impression that it was a US style Tea Party without the theocracy-like elements.
Singleton makes it clear that The Charter is not off limits. “There is no reason why a group of eminent and experienced Australians should not review the charter to ensure and enable its relevance for today, and the current very challenging times for the media”.
Both have made very public their blind faith in neoliberalism. It’s as if the GFC never happened!
Singleton’s political history, radio station assets and his personal friendship with Alan Jones gives a pretty clear indication of what direction he will likely want to take Fairfax in.
Gina …. well I’m sure we all know why Gina wants to control Fairfax. I mean, its no coincidence that after receiving advice from Lord climate-sceptic-nutter-Monckton on how to better capture the Australian media to push a right wing, free-market agenda, we find Rinehart buying up shares in both Ten and Fairfax.
For anyone who hasn’t seen the video here is the link. http://youtu.be/aX2kMAfJggU
The future of Australian journalism is actually frightening for many in the industry who fear being played as pawns in a political game.
There is an interesting story on the Pickering Post site today about Fairfax that is worth reading. I think they are their own worst enemy. I note that the Wagga Advertiser (Rural Press) has been turned into a leaflet, and our own Border Mail is thinner and thinner. They have even discarded the financial pages (2) which they can ill afford to lose, customers are just picking up the Herald Sun, Tuesday through Saturday. It seems to me that FF will be the end of these editions, as they are out of touch with their customer base. While they complain about the Web for reduced market, not one of the FF papers has changed ANYTHING !! to compete. The Age has withdrawn the property guide here in the Riverena, and customers are not happy, as many have or want to buy property in Vic. Despite many calls by these customers to FF, no interest has been shown. Keep reducing the value of your product and the customer will re-act. Our sales of HS, WT and Aus have increased, and I believe they continue to be a value read. Maybe Singo will have a positive effect..
Why would anybody worry about what Gina and Singo might do to Faifax. Last time I looked Fairfax was a commercial entity listed on the stock market. In other words the main objective is to make a buck on behalf of the shareholders. All that the Grocer and the board are doing at the moment is burning shareholder value by the bucketload. The current board of Fairfax is doing a wonderful job of sending that organisation down the pooper tube thank you very much. And anyone that thinks thier digital strategy is the saviour is having a lend of themselves. If the board, or anyone else is “worried” about what Gina and Singo will do to Fairfax, perhaps they a managment buy out or a White Knight investor is the answer. The only problem is that the objective of a commercial media organisation is to sell more papers, full stop. And Fairfax just cant do it under the current management.
I think that your comments against Gina Reinhart are unfair. She is a highly successful business woman (hopefully no mysogeny here Mark) and employs thousands of people in the mining industry & other industries that depend on the mining industry. Ms Reinhart should be held in high esteem for all her achievements, and is as entitled to her views as you or anyone else. As for Alan Jones, if people didn’t like him, they wouldn’t listen to him. Last radio ratings Alan Jones & 2gb were Number 1 by a million miles, so I think that says a lot about Singo’s success in the media industry. As for Fairfax, if they produced a better newspaper, people would buy it. The Age in Melbourne is total crap. People do not want to read the biased rubbish that the ‘reporters’ write. The bottom line is, no one buys their newspapers because no one wants to read what they write. Fairfax should consider themselves lucky that anyone wants to invest in their company, especially someone like Ms Reinhart & Mr Singleton and Mark you should support whatever is going to keep Fairfax in the business of producing newspapers.
James, you typed in a web address with your comment which does not exist. If commenting, only put in a real web address otherwise the blogging software will regard your comment as spam.
Nellie, Reinhart was born into wealth. Okay she has grown her wealth. Good on her. I am not aware of anything of value for Australia she has created from scratch.
As for holding up Alan Jones … he is a danger to this country. His ignorant poisonous racist attacks have no place in my life. read Jonestown by Chris Masters.
Not sure what you mean Mark. I have used my actual name and Email address to which I have received other business related emails directly from yourself. Nothing to hide here.
My mother always told me it was impolite to discuss politics or religion and to be honest you are showing a little too much of your slip for my comfort. In this case Ill stick to facts and logic.
Roger Corbett, current Chairman of Fairfax, during his time as CEO of Woolworths presided over a strategy which was about destroying local retailers….like Newsagents. Lets not pre-judge or diminish the abilities or views of people just because they havent started their business from scratch and have inherited a family business…..like many newsagents.
Im interested in whats best for my business and whats best is for Fairfax to survive and if possible thrive. Im backing Gina and Singo over Roger and the current crew, every day of the week. Lets face it, if nothing changes, Fairfax continues its death spiral to inevitable oblivion.
James, in the URL field of your previous comment you typed in junk. Click on your link and see for yourself. For this last comment you did not put anything in the URL field – which is good.
I get your point – you only want views you agree with.
It seems plenty of people forget that unlike most other business, media has an additional tier of responsibility in their undertakings. Our political and economic systems rely on an unbiased media.
In the context of their role in a modern democratic society, a media organisation’s responsibility extends beyond their shareholders. They have a social responsibility to keep the public well informed.
That is not to say that the BOD doesn’t have a responsibility to their shareholders – they do. However that doesn’t negate their other social responsibilities.
The current BOD is not doing a great job in delivering returns to the shareholders and there needs to be significant change in the direction of the organisation to rectify this. However there is little to suggest that Rinehart or Singleton have the intention of meeting both shareholder and social responsibilities. In fact there is a growing mountain of evidence that suggest not only do both intend to shirk their social responsibilities, but use the power of the media organisation unethically to benefit their other business interests or push unscrutinised political agendas.
Nellie,
As Mark has said, Rinehart inherited much of her wealth. It is easier to create more wealth once one already has it. It is also worth noting that the wealth she inherited was already in an industry that has since boomed.
Her achievements are few and far between when one looks outside the business area. Her philanthropic tendencies are almost non-existent.
You seem to be under the impression that a media organisation should write what people want to hear. News Corp is a fine example of this. Unfortunately in the process of chasing the almighty dollar above everything else, they have shown no regard for the truth or the role they play in modern democracy. We don’t want a Fox News situation (which one might argue we already have to a certain degree) here is Australia – a powerful news organisation centred around hyperbole and extremism.
James,
Your mother was wrong. Politics and religion should not be relegated from polite discussion. Both are important topics that pervade so many of the things that we discuss here or anywhere for that matter. To remove them from discussion means to limit the body of thought that is put forward – all for the sake of not offending.
Sadly Jarryd, you have proven my dear old Mum correct. Our political and economic systems do not rely on an unbiased media, it relies on a diversity of opinion and the ability to freely express it. The media, both public and commercial, has never been unbiased and continues not to be so.
The wonderful part of our society is that we get to choose what media we consume and pay for. It is indeed the objective of a commercial media company to produce product that someone will pay for and it is the job of the board to deliver this.
Sadly you are confusing a purely business issue with a political one. Like Mark, you have completely missed my point.
Its is healthy for the newsagency industry if Fairfax survives. Frankly I dont care who does what, as long as someone does something. It seems that some are happy for this only if it meets their political agenda. I just dont care, other than anybody aside from the current board would be a better bet.
James,
Our democratic political systems rely on the public being well informed. Being well informed requires exposure to a diversity of opinion, yes, however it is more heavily reliant on the media aiming to be neutral or free of bias.
The ability to freely express an opinion does not guarantee a well-informed society. A pure “freedom of the press” argument is one that assumes equality of power amongst the people. This is obviously not the case. Some people have far greater power to express their opinion much louder than others.
No one claims that media is purely unbiased. But neutrality is what it should aim for. It might not always achieve it, but that does not mean it should not strive towards it.
You are suggesting that the only responsibility of a media company is that of shareholder return. To say I am confusing a purely business issue with a political one is to completely dismiss the role the press plays in a democracy. It is the conduit through which people become informed. Without well informed people, the concept of democracy breaks down and becomes just an illusion.
Jarryd, I basically disagree with everything you have just said. If our democracy was dependent on an unbiased and neutral media, we wouldn’t have a democracy today.
Get to the point.
Fairfax surviving good or bad for the newagency industry ???
Who does it and how ???
Jesus Jarryd
James, I’ve not missed your point at all. Further, I have not demeaned you have having a view and publishing it here.
Fairfax’s long-term future is not in print, neither is News. Newsagents spend too long worrying about these things.
Gina Reinhart and John Singleton will, in my view, do more damage sooner to the print product than current Fairfax management.
What I’d really like to see happen with Fairfax is that their mastheads are purchased by people in the towns in which they publish as this is where inquisitive and professional local journalism will be appreciated most.
James,
The practical function of a democracy is not dependant on an unbiased media. Everyone can still vote without an unbiased media. But modern democracy isn’t just the practice of people voting. It’s the idea that people can each make a decision as to who manages the society in which they live. The more informed people are the more equipped they are to make that decision. If people are either not informed, or misinformed, then they still get to make a decision but it is one that is less guaranteed to be good for them. This is a kind of democracy in practice only, where there are essentially a select few manipulating the way people vote through control of information.
I’d like to think some things are more important than an individual industry or media company. That’s not to say I don’t want Fairfax or the Newsagency industry to survive – I do – but not at the expense of the integrity of the press and a well informed public.
JAYRRYD WERE ARE YOU LIVING It is all about the share holders no share holders no fairfax ,hope they get it because it is on its way to boot hill now
Bill,
So your happy to say anything goes, so long as its good for the shareholders? Would you say the same if it were a company dumping toxic waste into a river and they could not be profitable if they had to transport it to a safe location? Would you allow that company to collapse or say, oh well, that’s ok, keep dumping waste, the important thing is that your making money?
‘Bill’ please stop putting junk in the URL field. The blogging software will block you as a spammer.
Bill your scorched earth approach to shareholder interests is a bit shallow. Any business has got to start with customers. It has to have an offer that is attractive to customers. This drives it’s revenues from which it derives its profits (after it has prudently managed its costs). This applies equally to Fairfax as it does to any other business. If people stop reading it, advertisers will stop advertising in it. Revenues will fall and profits will disappear. A board that acts to narrow the spectrum of the product (eg by expressing extreme right wing views) might eventually affect circulation and advertising revenues. It’s really not that complex
I think you are right Mark, print media will revert to a local focus. Whether either Fairfax or News play in that space long term remains to be seen.
If we arent to concern ourselves with the future of print news, then I kind of think we should also not concern ourselves with the future of the “Newsagent” shingle. It is also surely outdated and an irrelevance in todays retail environment. The very concept of a network of agents retailing print news is as dead as Fairfax’s print future.
I love your Newsagent of the future presentations, but I think the real challenge is what shingle goes on the front of the store.
The newsagency shingle, like the N, has no future. The future lies in shingles that are contractually controlled.
What do you mean Mark, bu “contractually controlled” shingles? Do you mean buying groups?
Bruce, no, I mean groups that have discipline contracted into use of the shingle.
This will take time but it is the future.
Buying groups lack discipline without discipline.
So newsagents should all be generic, controlled by a central office dictating what we stock and what we charge? The newsagent in Byron bay would look the same as the one in Dubbo like the servos or 711’s
discipline is what made mcdonalds, its not what they sell, but how they sell it.
No, not at all. More groups are needed for a start. Within the group structures newsagents need to be able to be locally relevant. The disciplines need not be about the whole business.
Within a suitable range & assortment the products can be adapted to the local market. The discipline is critically relevant to the ambience in our stores, the way our staff behave and treat our customers and the the tone & manner of our promotions. These are the areas where we can build a common ground and leverage they synergies of an appropriate singular shingle.
Newsxpress is a step in the right direction but the have more work to do on the product management side.
Who decides the disciplines and what areas are to be controlled or the range is it suppliers demanding space allocations and minimum orders, the group executive that are looking at their own bottom line, other members who think if it works in my shop it should work everywhere or a third party.
Newsagencies are small family owned businesses by majority not chain stores or franchises and if that is what you want then buy a franchise. We went down the group road, changed our name and branding and it almost killed us off all together as we were the same as up the road.
But we are slowely getting back our identity and $$$ are following. For some it may be good shopping centre and the like but not for all.
As a channel it is not a one size fits all approach that is needed.
Luke, individual newsagents will make their own choices as they always have done. What I am outlining is a model for those who prefer to operate under a common banner that is promoted to drive new traffic. There are many newsagents better off today for being part of a disciplined group.
One of the major problems I see if Fairfax falls into other hands is the potential loss of diversity in the Newspaper Market. With the suggested two purchasers at the start of this thread, Gina and Singo I doubt the Charter would last 10 minutes and we would have another newspaper parroting the same politics as News Ltd papers.
The killing of Diversity would be a bad thing as different views now seen in the Media would be severely trimmed and public debate stifled.
As to dumping the Charter, yes that is up to the shareholders. However, if the customers do not like the result they will not buy it and in this case with the SMH I suspect that is a reasonable risk. Though its circulation is presently falling so they have to try new things.
With the Fairfax country papers they are generally doing fine though one Barry mentioned earlier the Wagga Daily Advertiser is a problem as they were on 4 percent returns which cost me and the WDA lost sales as my sales can vary on the WDA by 20% 1 day 1 week to the same day in another week.