Major changes at Fairfax
“The old model of newspapers is dying. The newspaper industry is trying to innovate as much as possible and it just hasn’t struck gold yet and figured out what will work best. It’s a serious problem for them and they may not solve it at all because it may turn out that less and less people want to buy newspapers in the future.”
This is a quote from Ed Butler, a Senior Analyst with IBISWorld. He is quoted in an article published by ad industry journal B&T speaking about the turmoil at Fairfax following the ‘resignation’ today of CEO David Kirk and the sacking yesterday of Alan Oakley as editor of the Sydney Morning Herald – are evidence of the challenges of newspapers. These changes have been brought about on the back of a considerable drop in Fairfax share price, staff retrenchments earlier this year and other major changes.
Newsagents are experiencing changes in their dealings with Fairfax through trimmed margin on subscription offers, more complex and time consuming consumer offers and other changes. Fairfax sees newsagents as a cost rather than an opportunity. If they reversed this view and treated newsagents with economic respect they may have healthier sales than today. By this I mean that Fairfax should reward newsagents for growing sales. Instead, with some of their current offers, newsagents are effectively penalised for new subscription customers.