There is more agony ahead for The Age in coming weeks.
News has emerged that in the next few weeks there will be big cut backs in page numbers. The paper’s most popular sections – Green Guide, Money, Insight, Sport, and A2 are all about to lose pages, and special sections and news may be in the gun as well.
This follows the dropping of Friday’s form guide last week, which has resulted in a record number of over 600 reader complaints. The guide was cut, incredibly, on the eve of the Golden Slipper in Sydney, which is a bit like blocking up the chimney the night before Christmas.
Even more bad news. A staff freeze is also about to be imposed.
I understand that all these cuts have been vigorously fought by besieged editor Andrew Jaspan, and are the result of direct intervention by the Victorian chief executive Don Churchill.
It is happening because, while circulation is comparatively good and ad volumes are up, heavy advertising discounting means that revenue has gone backwards over the last three years.
Apparently things are even worse in Sydney, with the Sydney Morning Herald revenue about $24 million behind on budget. The difference is that the NSW economy is sick, which explains some of the problems, while the Victorian economy is holding up well, giving Melbourne management fewer excuses.
The Age still makes a healthy profit of about $100 million a year, which some journalists argue makes the wisdom of gutting sections and quality questionable on purely business grounds, let alone the impact on the long term future of the masthead, and journalism in Melbourne.
This is the miserable background to the current struggles between management and journalists over editorial independence. Sydney management would find it hard to intervene in Age management when their own house is in even worse order.
Meanwhile, a year after the Rural Press and Fairfax merger, the divisions within the company are becoming more intense – between Sydney and Melbourne, and between the print sections and online.
Despite the integration of the newsrooms the Fairfax Media management structure is out of kilter with industry trends in that the online division is run separately to print media and business media. One of the effects is a digital presence that is out of character – and considerably more “tabloid” than the hard copy mastheads. Both Fairfax insiders and industry observers are questioning whether this effectively undermines the “brand”. And at a senior management level, the increasing tensions are described by insiders as making the operation “unstable and commercially risky”.
The focus on cost cutting to achieve short term financial targets brings to mind Kerry Stokes’ point about The West Australian – that you can’t build a healthy business by cutting back on the things you sell.
Meanwhile the Age Independence Committee met yesterday afternoon to consider its next move in the push to protect editorial independence from the paper’s commercial arrangements – but the committee isn’t talking.
This is not because nothing is going on. It is likely the committee will try to draft its own protocol, given management’s refusal to negotiate one.
And the troubles at the Age are being openly discussed among Victorian Government MPs and other public figures and opinion leaders.
There are moves afoot, and rumblings around Melbourne both inside and outside The Age building. But Age staff don’t want the next developments announced in Crikey.
In this, though in little else, staff and management are as one.
After TomMcL’s egregious and meretricious remarks my tiny comment is minute and applies only to their online section. To comment online with the Age you had better do it before 11am. This is the time when all the forums appear to close. Faced with a ‘blank wall’ it is easier to forget it than to persevere and why keep coming back to where you’re not welcome? This would cost them a lot of goodwill, I would have thought.
The discounting can’t be underestimated….in the SunHerald, the biggest seller in the stable, there is a standing offer in the marketplace of $12k a page…around a third of their rate card price, so effectively 70% or so off… strange business model doncha think?
I tell ya, getting rich doing journalism or anything else is not what it’s cracked up to be in the 21C. Allright for the 20th, logical, even commendable. Them days are going pretty fast, if not pretty much gone. Get your floaties, don’t trust any corporate exec shonk living in the past, and start building those cooperatives and grassroots alliances. When the wheels start falling off this model of an endless growth political economy with more extreme weather and higher sea levels peak oil and all the rest, look to eachother not to the top down guys. Yeah I know this is about a corporate media organisation. It’s still the same answer. The business of cranking higher production of more widgets to leverage more adverts is contracting all around us. Maybe the structural ramp up sale of coal as per econ editors in SMH and Oz yesterday can postpone the global contraction here but I wouldn’t bet on it. Hansen reckons 350 ppb has been way exceeded. It’s the ecology …..
Margaret, the NSW economy is not “sick” or at least no “sicker” than Vic. Last time I looked GDP growth in NSW was slightly faster than down Mexico way. I suspect the SMH mob are just better at making excuses. They blame Iemma for everything else that goes wrong so why not add their own performance to the list.