Date

Wed - 13.12.2017


Analyst: Fairfax should axe two print papers

Analyst: Fairfax should axe two print papers

An analyst for a big Australian-based investment bank suggested that Fairfax Media Ltd. could gain its earnings by shutting down the print editions of The Sydney Morning Herald and Melbourne's The Age and focusing on e-readers and online, The National Business Review reported.

According to the report from Macquarie, Australia's biggest investment bank, dropping print editions and delivering content via e-readers could "boost earnings from the two papers to A$55 million - $5 million more than the bank's 2010 forecast, the Australian reported.

Analyst Alex Pollak said Fairfax could "get the ball rolling by spending about $50 million to give away 100,000 e-readers to seed the migration of readers away from print."

"The point is such a move is likely, but not in its entirety on day one -- a seismic structural shift like this will take time for Fairfax to convince both advertisers and consumers alike of its merits," he added.

Fairfax has hired consultants to perform a review of its five-year strategic plan compiled by chief executive Brian McCarthy, which, according to Macquarie, would be released along with its 2010 results, the Australian reported.

Pollak said the plan includes a proposal to combine the editor-in-chief roles for both print and online, and added Wednesday that Fairfax might consider the savings from closing down print editions of two biggest dailies in Australasia.

"We believe that a more far-reaching examination of the Fairfax business cannot be ruled out, including the elimination of newsprint altogether in The Sydney Morning Herald and The Age," said Pollak.

Author

Erina Lin

Date

2010-08-05 23:43

Shaping the Future of the News Publishing


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