Fairfax Kills OFF Broadsheets and Lifts Profits

Fairfax Media’s familiar broadsheets have been consigned to the history books, with the first tabloid editions of The Sydney Morning Herald and The Age rolling off the printing presses this morning.

In what is more of a survival strategy than a cosmetic overhaul, the larger broadsheet layout has been dumped for the weekday editions as Fairfax Media fights to hold onto readers and advertisers in a digital media world that has forced the closure of papers around the globe.

Apart from just size – which Fairfax amusingly refers to as compact rather than tabloid -  one of the biggest changes puts sport on to the back pages, with the very back page taken up by an advertisement, nice work.

Fairfax’s head of advertising strategy, Sarah Keith, says the company put in some very serious research. Brain imaging was used to track what readers really wanted during the entire redesign process, with some resounding plus’ for the new tabloid sized compact papers :: Read the full article »»»»

Fairfax SELLS NZ Online Classifieds Site TRADE ME… for a profit!

Fairfax is selling its remaining 51 per cent stake in New Zealand online classifieds site Trade Me for over $600 million. The struggling media company is selling its shares for $3.05 each, in a sale underwritten by UBS that will raise a total of $616 million.

Fairfax reckon that the money will be used to pay down its extremely large debt burden. The company’s chief executive Greg Hywood says cutting debt will allow the business greater flexibility in adapting to the new media environment.

“The proceeds from the sale will reduce Fairfax’s net debt and will provide us with a very strong balance sheet and the financial flexibility to invest and to complete the company’s structural transformation,” Mr Hywood said in a statement. ”So when you look at the sale of both parts, despite selling at a discount, Fairfax has sold the entire Trade Me business for just over a billion dollars, giving it a $413 million profit.”

This dramatically reduces Fairfax’s debt down to around $230 million, which means that Fairfax can concentrate on rejuvenating it’s Australian business interests. Post sale, Fairfax will no longer have any stake in Trade Me. Mr Hywood says the firm has learnt some valuable lessons about the online environment through its six-year ownership of Trade Me.

“Trade Me has been a great business for Fairfax and we have learned a great deal more about the successful operation of digital businesses over the years since we acquired Trade Me for $NZ750 million in 2006.”

UPDATED: News Limited Shakes It ALL Up

Australia’s media landscape has been through the ringer over the past few weeks, the ground is changing at a pace not seen since the eighties. The latest shake-up comes from the ever stoic News Limited – the Australian arm of News Corporation – the company has announced a massive restructuring of the way it delivers news.

The announcement on last week, which included job cuts and a reduction in east coast operations from 19 divisions to five, came days after Fairfax Media outlined plans to axe 1,900 staff, move jobs offshore, close two major printing presses and downsize its flagship newspapers to tabloids, as well as it’s ongoing boardroom battles with billionaire Gina Rinehart.

Despite the cuts, News Limited CEO Kim Williams has told staff that the organisation remains committed to print :: Read the full article »»»»

UPDATE! World of the News, Fairfax Media Confirms Jobs Going Offshore

Last month we reported on that shrinking Australian media behemoth that is Fairfax Media, is apparently planning to send jobs offshore by relocating production of its regional newspapers to New Zealand.

The proposed changes will affect 66 Fairfax staffers, Media, Ethics & Arts Alliance – MEAA – said via statement today.

Fairfax said the affected staff would be offered voluntary redundancies or redeployment, however, some staff may also be forced into redundancy.

The affected newspapers include the Illawarra Mercury, Newcastle Herald and seven associated community titles including the Lake Times, Kiama Independent, Newcastle Star, Myall Coast Nota, Port Stephens Examiner and Lakes Mail. Read the full previous post.

UPDATE! FAIRFAX HAS CONFIRMED – JOBS ARE GOING OFFSHORE: Newcastle Herald and Illawarra Mercury workers have failed in their bid to stave off job losses under a plan by Fairfax Media to transfer editorial production to New Zealand.

Fairfax has confirmed a total of 41 production jobs will be axed from newspapers in the Newcastle region, including the Newcastle Herald, and 25 jobs will go from the Illawarra Mercury. It says the changes are part of moves to increase efficiency in its newsrooms.

The Media Entertainment and Arts Alliance – MEAA - asked Fairfax to continue doing the work locally through the creation of a virtual sub hub that it claimed would be more cost-efficient :: Read the full article »»»»

World of the News! Australia’s Fairfax Media Sends Jobs Offshore

That shrinking Australian media behemoth that is Fairfax Media, is apparently planning to send jobs offshore by relocating production of its regional newspapers to New Zealand.

The proposed changes will affect 66 Fairfax staffers, Media, Ethics & Arts Alliance – MEAA – said via statement today.

Fairfax said the affected staff would be offered voluntary redundancies or redeployment, however, some staff may also be forced into redundancy.

The affected newspapers include the Illawarra Mercury, Newcastle Herald and seven associated community titles including the Lake Times, Kiama Independent, Newcastle Star, Myall Coast Nota, Port Stephens Examiner and Lakes Mail.

Workers were told about the plans this afternoon and Fairfax has announced the move on the papers’ websites.

Fairfax says the changes are part of a “wider company strategy to pursue operational efficiencies while strengthening the focus on audience growth and producing quality content”.

Fairfax says no reporting or photographic positions would be affected :: Read the full article »»»»

World of the News

JK Rowling: Author of the Harry Potter book series, is writing her first novel for adults The British writer, 46, whose teenage boy wizard tales became international best-sellers and inspired a series of hit films, said on Thursday her new novel would be “very different” to the Harry Potter books that made her a household name and turned her into a billionaire. The Simpsons 500th Episode: Our favorite four fingered family, The Simpsons, have reached another milestone. On Sunday the 19th The Simpsons aired their 500th episode, “Long Last Leave”, Episode 14 of Series 23 to be precise. Since first airing December 17, 1989 the Simpsons have gone on to become an an institution of hilarity. Springfield’s all over America have never been the same. Australian Media Roundup: Fairfax’s 40 percent drop in revenue is about to take it’s toll on employees, the Seven Network ups it’s profits and market share. Meanwhile, Ten Network Holdings has warned that its half-year profits will be significantly down on the year before due to a drop in revenue from its television and outdoor advertising divisions. Rupert Murdoch’s latest venture, The Sun on Sunday kicks off this weekend, the challenge for Murdoch’s new Sunday tabloid: Keep the scoops, drop the sleaze.  Drone Journalism: ABC has a superlative piece on one of the emerging tools in modern journalism ‘No Brooks it’s not your finger followed by your halitosis‘ Drones play an increasing and controversial role in modern warfare. From Afghanistan and Pakistan to Iran and Yemen, they have become a ubiquitous symbol of Washington’s war on terrorism. World of the News Online: Gannett, the largest United States newspaper chain, has announced plans to begin charging for online access to its 80 US dailies by the end of the year with the exception of flagship USA Today. Read the full article »»»»