Shutting down printed newspapers is ‘inevitable’ for the second largest publisher in the region even as the CEO focuses on maximising cash from print.
Greg Hywood told investors the time is not yet right to close printed newspapers but that is what’s going to happen in the future. According to a report by Media Website, Mumbrella, Fairfax is looking to leverage the revenue from its printing plants as well as closing (consolidating) Australian Community Media (ACM) regional newspapers. There are more than 200 newspapers in the stable, which last year produced earnings of $74.3 million.
Fairfax is in a relatively better position in printing than its News Corp rival due to the early shutdown of the two metropolitan printing plants at Chullora and Tullamarine and the distribution of the presses across the network. Taking advantage of the more efficient Rural Press operation in regional centres, it has a state of the art printing business that not only produces newspapers but also a wide range of commercial print.
News Corp, on the other hand, is facing the challenge of investing and upgrading its aging presses as it continues to support the printed future of its newspapers. There is no suggestion from News that it envisages a print-free future for its newspaper business.
The hoary old chestnut of sharing printing plants continues to raise its head but the cultural challenges between the two organisations are still immense. Despite Fairfax downsizing The Age and the Sydney Morning Herald to tabloid there is still a way to go before it’s feasible to share printing presses.
Hywood maintains that next year the revenue from the company’s digital operations will exceed that of the printed newspapers.