Fairfax Media (FXJ) is remaining in print – a move that will upset News Corp Australia (which itself is now in a struggle to remain afloat after a massive write down in the value of its fixed assets last week) and some Fairfax’s shareholders who want to see the businesses sold off.
The decision will see Fairfax place even greater importance on its digital editions and websites, with print’s importance further wound back.
The reasons for the decision are simple – printing and distribution problems confronting Fairfax Media’s attempts to end the week day editions of the Sydney Morning Herald and the Melbourne Age, while keeping the Monday to Friday Australian Financial Review in print, have proved to be insurmountable.
As a result, Fairfax Media CEO, Greg Hywood told staff in a memo yesterday that the print editions will remain in business.
“While we have considered many options, the model we have developed involves continuing to print our publications daily for some years yet,” Hywood said in his memo.
It is something of a turnaround as for much of 2016 Hywood and his management team were focused on ending the week day editions of the two papers, (and killing the weekend edition of the AFR), but keeping the AFR going Monday to Friday.
But around November last year they realised that without the printing and the distribution of the SMH and Age, the Monday to Friday, the week day AFR (which has clout in Canberra) would not be economic and would have to be shut as well.
The costs of producing, printing and distribution the SMH and the Age Monday to Friday effectively underwrites the costs of producing, printing and distributing the AFR in its two biggest markets for print copies.
As well, ending the Monday to Friday printing, processing and distribution costs would raise the real costs of the weekend editions of the Age and SMH and the Sunday papers, throwing their viability into question, especially the Sundays.
Since then the focus has been on how to reshape the editorial and production costs of all papers to ensure their viability. For example, don’t expect to see the AFR Weekend Edition maintained or much longer, but expect a bigger Friday edition.
The AFR is said to be losing a couple of million dollars a year, but Hywood said yesterday that “All of our publishing businesses have continued to be profitable through this transition, an extraordinary achievement for which you should all be proud."
“We are announcing today the next decisive step for our Metro titles – including The Sydney Morning Herald, The Age and The Australian Financial Review – to secure our journalism, not for a year or two, but for the foreseeable future,” Hywood told staff.
He said "it involves even greater primacy of our digital publishing focus, delivering unrivalled news and information products to our customers, and sustaining a commercially successful print proposition. While we have considered many options, the model we have developed involves continuing to print our publications daily for some years yet.”
"Chris Janz, Director of Publishing Innovation, will become Managing Director of Australian Metro Publishing, reporting to me. Chris was previously founding CEO of HuffPost Australia, a Fairfax joint venture with The Huffington Post.
"He has more than 20 years’ experience in building market-leading digital media businesses, including establishing the Fairfax-owned Allure Media digital publishing portfolio. Chris has been overseeing the impressive product and technology development work that will be the centrepiece of Metro’s next generation publishing model.
Jamz has been pushed up above Allen Williams, who is Managing Director of Australian Publishing Media and overseeing much f the most recent changes. According to Hywood, he now takes on "a new role as Managing Director, Publishing Transition, still reporting to me. This role involves ensuring the success of our publishing model. Allen continues to have oversight of Australian Community Media and Printing & Distribution operations.”
Hywood revealed one small restructuring – the Metro publishing business will incorporate Life Media and “align with the overarching Metro publishing strategy.” The Events will remain separate and focused on delivering its strategy and continue to report to Andrew McEvoy.
Fairfax yesterday revealed the revamp of the editorial leadership of the Age and the SMH. James Chessell (currently in London with the AFR) has been appointed Fairfax Media’s National Editor, with responsibility for federal politics, business and world coverage across The Sydney Morning Herald and The Age; Lisa Davies has been appointed Editor of The Sydney Morning Herald and Alex Lavelle has been appointed Editor of The Age.
That was after Darren Goodsir resigned yesterday as Editor-in-Chief of The Sydney Morning Herald, after 3½ years in the position and almost 20 years with Fairfax Media.
Fairfax shares edged up half a per cent to 89 cents.
