More editorials and opinion pieces about the changing nature of journalism. The two here focus on the structural problems being faced by the industry as a whole. Can they be overcome? Has the industry past a turning point where there's no turning back?
The winter of journalism's content
THE AUSTRALIAN
David McKnight and Penny O'Donnell | September 03, 2008
NEWSPAPERS in Australia and the world face difficult choices in the next decade. The dilemma can be expressed in a simple question: who will pay for quality journalism in the future? Until now the answer has been obvious. Advertising has subsidised journalism since the mass market press emerged at the end of the 19th century.
But the much-despised advertising is on the move. It's heading for the internet and with it is going one of the main props for journalists' salaries. In the language of economists, the business model for journalism is collapsing. But this is more than a problem for journalists or media owners; it is a problem for the democratic functioning of society.
Techno-optimists will tell you that the dinosaur newspaper industry simply will be replaced. The public will be informed by news on the internet, television and radio.
There are at least three problems with this bright forecast. First, newspapers are by far the main source of news as well as agenda setters compared with radio, TV and online, according to research for the Australian Broadcasting Authority in 2001 (now the Australian Communications and Media Authority). MORE
Loss of deepest diggers
Mark Day Blog | September 04, 2008 | 15 Comments
THE ructions at Fairfax Media have succeeded in putting the future of newspapers and journalism front and centre of debate about future trends in media. Commentary has focused mainly on Fairfax’s policies, its financial modelling and the perception that publishing is a business on a slippery slope.
Precious little has been said about how the industry’s structural problems may be overcome. Will it be by slashing and burning, reducing costs by sacking people in a spiralling game with no end? Or will it be by investing in new ways of doing things in the hope or expectation that they will deliver the profits required to grow?
Fairfax, driven by the cost-cutting experts it inherited from last year’s merger with Rural Press, has opted for the slash and burn model. Of the 550 people earmarked for the sack, about 180 will be journalists, with an expected 120 to go from the company’s flagship titles The Sydney Morning Herald and The Age.
Fairfax is not alone in going down this route. The big US papers, led by The New York Times, have been leading the way in recent years. MORE
Showing posts with label The Age. Show all posts
Showing posts with label The Age. Show all posts
Saturday, September 6, 2008
Monday, September 1, 2008
The digital side of Fairfax
Fairfax Digital is growing while Fairfax Media is being cut - that's the latest news coming out of the Australian media company. But how effective are the advertising and profit models at the moment. Can the company evolve into a digital information company?
Bright future for Fairfax Media digital division
Michael Sainsbury | September 01, 2008
FAIRFAX Media's booming digital division -- which provided the only bright spot in disappointing recent financials -- is gearing up to grab a slice of $3.3 billion in television advertising as the Australian internet industry moves towards a cohesive audience measurement system.
The Fairfax digital division, which will escape the axe-wielding announced at its Australian and New Zealand broadsheets, boosted profits by more than 50 per cent in Australia and New Zealand and is adding more staff to its existing 600.
In the days after Fairfax's main newspaper group announced staff cuts of 550 people, or 5 per cent of the workforce, Fairfax Digital chief Jack Matthews said the division had added about 100 people in the 2008 financial year.
Mr Matthews said staff growth would continue next year, although not at such a fast rate, and the group could pick up people who had lost their jobs in the newspaper division.
"We are operating in a very different environment but the same kind of pressures to be efficient and cost-effective exist here," Mr Matthews said.
"It's not like we have a blank chequebook. One difference is that our industry and our market are still high-growth areas and we need to invest in that growth.
"Even though revenue growth slowed a bit in the second half, year on year, the bottom line increased in the second half." MORE
Bright future for Fairfax Media digital division
Michael Sainsbury | September 01, 2008
FAIRFAX Media's booming digital division -- which provided the only bright spot in disappointing recent financials -- is gearing up to grab a slice of $3.3 billion in television advertising as the Australian internet industry moves towards a cohesive audience measurement system.
The Fairfax digital division, which will escape the axe-wielding announced at its Australian and New Zealand broadsheets, boosted profits by more than 50 per cent in Australia and New Zealand and is adding more staff to its existing 600.
In the days after Fairfax's main newspaper group announced staff cuts of 550 people, or 5 per cent of the workforce, Fairfax Digital chief Jack Matthews said the division had added about 100 people in the 2008 financial year.
Mr Matthews said staff growth would continue next year, although not at such a fast rate, and the group could pick up people who had lost their jobs in the newspaper division.
"We are operating in a very different environment but the same kind of pressures to be efficient and cost-effective exist here," Mr Matthews said.
"It's not like we have a blank chequebook. One difference is that our industry and our market are still high-growth areas and we need to invest in that growth.
"Even though revenue growth slowed a bit in the second half, year on year, the bottom line increased in the second half." MORE
Sunday, August 31, 2008
Are journalists just 'content providers for advertising platforms'?
First, the latest news, Australia's federal workplace minister expresses concerns about the strike:
(AAP) Fairfax strike of concern: Gillard
FEDERAL Workplace Relations Minister Julia Gillard says she is concerned about the industrial dispute affecting Fairfax daily newspapers and wants quality and diversity to be maintained in the media.
Journalists from Fairfax are on strike because of management plans to axe 550 jobs.
Ms Gillard told Network Ten today she was "concerned'' by the developments.
"I am someone who is concerned about the quality and diversity of our media market.''
The deputy prime minister called on both parties to talk.
"There's never been an industrial dispute in this country that wasn't solved by talking.
"I think when we look at the Fairfax dispute we need to remember that rule.''
And more editorial in support of The Sydney Morning Herald, this time from its rival paper The Daily Telegraph.
The Fairfax job cuts and the dragging down of an icon
Silver Surfer
Saturday, August 30, 2008 at 09:13pm
The shenanigans of the past week at Fairfax, publishers of The Age and The Sydney Morning Herald where journos, artists and photographers are on strike over plans for mass sackings, are another example of a big company putting its profits before people, but in this case we’re not just talking about its staff. There’s the loyal core of readers to consider in this as well, and it’s a key issue here because media companies really are a different kind of animal. Be that as it may, it’s still a classic case of the old muddle-headed, knee-jerk reverse thinking that too often seems to provide a quick and easy answer to the executives of corporate Australia, who appear to the average punter more interested in saving their own bonuses and delivering dividends to shareholders than doing the right thing in the first place by their customers, staff and clients.
There’s no doubt here they’ve run out of ideas; advertising revenues are down, no one’s buying the product – at least not in the numbers required to make them highly profitable operations, and readership has been on a steady decline – and so the only answer they can come up with is to make the situation worse by giving everyone the flick. Smart move. The so-called rivers of gold once provided by Fairfax’s classified advertising obviously aren’t translating to a challenging, new era in media brought about by the digital explosion, and even before last week’s announcement, staff numbers had been pared back.
One of the worst things about these kinds of disputes (at any company) is that invariably, the axe falls on the people who are working their guts out to put out a decent product, not the people who’ve either run them into the ground in the first place or who are more interested in stripping them down to increase returns. The staff at Fairfax now face a kind of nail-biting reverse lottery with 550 job cuts on the cards and too many will be wondering in the coming weeks whether they can still pay their mortgages. It won’t be an issue for the executives, though - they’ll still be pocketing the big paypackets and carrying on as usual. For now, anyway. MORE
(AAP) Fairfax strike of concern: Gillard
FEDERAL Workplace Relations Minister Julia Gillard says she is concerned about the industrial dispute affecting Fairfax daily newspapers and wants quality and diversity to be maintained in the media.
Journalists from Fairfax are on strike because of management plans to axe 550 jobs.
Ms Gillard told Network Ten today she was "concerned'' by the developments.
"I am someone who is concerned about the quality and diversity of our media market.''
The deputy prime minister called on both parties to talk.
"There's never been an industrial dispute in this country that wasn't solved by talking.
"I think when we look at the Fairfax dispute we need to remember that rule.''
And more editorial in support of The Sydney Morning Herald, this time from its rival paper The Daily Telegraph.
The Fairfax job cuts and the dragging down of an icon
Silver Surfer
Saturday, August 30, 2008 at 09:13pm
The shenanigans of the past week at Fairfax, publishers of The Age and The Sydney Morning Herald where journos, artists and photographers are on strike over plans for mass sackings, are another example of a big company putting its profits before people, but in this case we’re not just talking about its staff. There’s the loyal core of readers to consider in this as well, and it’s a key issue here because media companies really are a different kind of animal. Be that as it may, it’s still a classic case of the old muddle-headed, knee-jerk reverse thinking that too often seems to provide a quick and easy answer to the executives of corporate Australia, who appear to the average punter more interested in saving their own bonuses and delivering dividends to shareholders than doing the right thing in the first place by their customers, staff and clients.
There’s no doubt here they’ve run out of ideas; advertising revenues are down, no one’s buying the product – at least not in the numbers required to make them highly profitable operations, and readership has been on a steady decline – and so the only answer they can come up with is to make the situation worse by giving everyone the flick. Smart move. The so-called rivers of gold once provided by Fairfax’s classified advertising obviously aren’t translating to a challenging, new era in media brought about by the digital explosion, and even before last week’s announcement, staff numbers had been pared back.
One of the worst things about these kinds of disputes (at any company) is that invariably, the axe falls on the people who are working their guts out to put out a decent product, not the people who’ve either run them into the ground in the first place or who are more interested in stripping them down to increase returns. The staff at Fairfax now face a kind of nail-biting reverse lottery with 550 job cuts on the cards and too many will be wondering in the coming weeks whether they can still pay their mortgages. It won’t be an issue for the executives, though - they’ll still be pocketing the big paypackets and carrying on as usual. For now, anyway. MORE
Quality v quantity
With the impending Fairfax cuts in Australia comes more opinion pieces about the future of journalism. This one from Jack Waterford in The Canberra Times is one of the better ones I have read.
I like what he writes right at the end:
"The real test of it all is not with newspaper bottom lines. It is with circulation and readership, bearing in mind that the core readership is of baby boomer age or of the generation above it. By no means does it follow that younger journalists will have lower standards. Or that the simultaneous renewed focus on ''new media'' means that proprietors have given newspapers away. But if 50-year-olds are not comfortable with being informed, or hectored, by 25-year-olds, it is likely the demise of the newspaper will be quicker."
The real threat to newspapers comes from quality not quantity
BY JACK WATERFORD
30/08/2008 10:14:00 AM
The big challenge for any professional journalist, particularly in a city such as Canberra, is that a good proportion of readers probably more than 30 per cent here know more about your subject than you do.
They know the subject because it is their job to know it. That job, perhaps in the public service, or business, or academia, gives them access to a lot of other information, including most of our sources of raw information. If the subject is within their field of interest, they may well have already skimmed the latest information upon it even before they pick up this newspaper, or another one. MORE
I like what he writes right at the end:
"The real test of it all is not with newspaper bottom lines. It is with circulation and readership, bearing in mind that the core readership is of baby boomer age or of the generation above it. By no means does it follow that younger journalists will have lower standards. Or that the simultaneous renewed focus on ''new media'' means that proprietors have given newspapers away. But if 50-year-olds are not comfortable with being informed, or hectored, by 25-year-olds, it is likely the demise of the newspaper will be quicker."
The real threat to newspapers comes from quality not quantity
BY JACK WATERFORD
30/08/2008 10:14:00 AM
The big challenge for any professional journalist, particularly in a city such as Canberra, is that a good proportion of readers probably more than 30 per cent here know more about your subject than you do.
They know the subject because it is their job to know it. That job, perhaps in the public service, or business, or academia, gives them access to a lot of other information, including most of our sources of raw information. If the subject is within their field of interest, they may well have already skimmed the latest information upon it even before they pick up this newspaper, or another one. MORE
Saturday, August 30, 2008
Cuts in Australian media
It seems, not surprisingly, that the move to pear down newspaper staff is spreading from the US and UK to smaller markets like Australia.
Fairfax media is commencing a major restructuring program of the mastheads in its stable in Australia and New Zealand, including The Sydney Morning Herald and The Age.
Is it the management's only option - in a climate of declining profit margins - to cut staff and downsize the editorial process? I would venture to say that yes, a restructuring may be necessary, to prime the company towards new media and importantly, other platforms, but that there should be a move towards specialist journalism, eg. more high-end analysis type articles for a market that is willing to pay, rather than towards more general reporting and lifetyle-type features. I think it's important to note that general news and entertainment/lifestyle stories can be eaily obtained from other sources on the internet, mobile, cable TV etc and people will not buy the paper for such news.
On the other hand, more exclusive stories and analysis pieces geared towards an Australian market could possibly give media companies like Fairfax a future. Examples like the success of The Economist are encouraging.
But this might also be a simple case of the demise of the daily broadsheet as a source of general news, local, state, national and international. Who knows - the market might become much more fractured, and people will choose to get information from a wider variety of sources. eg. their mobile phone for breaking news, their e-paper or iphone/PDA for longer stories, their computer at work for photos, multimedia and other feature stories, and the news in the evening on telly for a round-up of the day's news. Once a week, they'll read The Guardian Weekly, National Geographic Magazine or The Economist for a in-depth feature.
As it is, a majority of my peers (in the 18-30 age category) do not buy newspapers. They do read news websites that have articles/images/multimedia for free. They listen to commercial radio and television news, and sometimes watch documentaries on SBS, ABC and on cable television channels like the Discovery network. And some still read the weekend newspapers that have more analysis and feature articles.
I don't deny that I will miss the daily broadsheet. To me, it's like books, having a physical product has a certain attraction. But I myself am more of a news consumer online, on cable news channels like BBC and CNN, and of radio podcasts and television current affairs programs. And I'm a very heavy consumer - most people out that don't care if a newspaper collapses or a journalist loses their job.
So if a media company like Fairfax, which also owns websites like rsvp.com.au, domain.com.au and trademe.co.nz, evolves to become an information company and not a newspaper or news driven company, don't be surprised.
The journalists' union Media, Entertainment and Arts Alliance has set up a Fair Go, Fairfax website and a facebook group, which currently has more than 1000 members.
Articles about Fairfax's cuts:
Fairfax Media legal unit also gets chopped in job axings
Citizen McCarthy swings Fairfax axe
Fairfax newspaper production to be outsourced
Strike paper on Friday, August 29:
Video of Fairfax campaign:
Fairfax media is commencing a major restructuring program of the mastheads in its stable in Australia and New Zealand, including The Sydney Morning Herald and The Age.
Is it the management's only option - in a climate of declining profit margins - to cut staff and downsize the editorial process? I would venture to say that yes, a restructuring may be necessary, to prime the company towards new media and importantly, other platforms, but that there should be a move towards specialist journalism, eg. more high-end analysis type articles for a market that is willing to pay, rather than towards more general reporting and lifetyle-type features. I think it's important to note that general news and entertainment/lifestyle stories can be eaily obtained from other sources on the internet, mobile, cable TV etc and people will not buy the paper for such news.
On the other hand, more exclusive stories and analysis pieces geared towards an Australian market could possibly give media companies like Fairfax a future. Examples like the success of The Economist are encouraging.
But this might also be a simple case of the demise of the daily broadsheet as a source of general news, local, state, national and international. Who knows - the market might become much more fractured, and people will choose to get information from a wider variety of sources. eg. their mobile phone for breaking news, their e-paper or iphone/PDA for longer stories, their computer at work for photos, multimedia and other feature stories, and the news in the evening on telly for a round-up of the day's news. Once a week, they'll read The Guardian Weekly, National Geographic Magazine or The Economist for a in-depth feature.
As it is, a majority of my peers (in the 18-30 age category) do not buy newspapers. They do read news websites that have articles/images/multimedia for free. They listen to commercial radio and television news, and sometimes watch documentaries on SBS, ABC and on cable television channels like the Discovery network. And some still read the weekend newspapers that have more analysis and feature articles.
I don't deny that I will miss the daily broadsheet. To me, it's like books, having a physical product has a certain attraction. But I myself am more of a news consumer online, on cable news channels like BBC and CNN, and of radio podcasts and television current affairs programs. And I'm a very heavy consumer - most people out that don't care if a newspaper collapses or a journalist loses their job.
So if a media company like Fairfax, which also owns websites like rsvp.com.au, domain.com.au and trademe.co.nz, evolves to become an information company and not a newspaper or news driven company, don't be surprised.
The journalists' union Media, Entertainment and Arts Alliance has set up a Fair Go, Fairfax website and a facebook group, which currently has more than 1000 members.
Articles about Fairfax's cuts:
Fairfax Media legal unit also gets chopped in job axings
Citizen McCarthy swings Fairfax axe
Fairfax newspaper production to be outsourced
Strike paper on Friday, August 29:
Video of Fairfax campaign:
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