Media giants News Corp Australia and Fairfax Media are reportedly in talks to broker a deal which could see the fierce rivals merge print facilities and collaborate on newspaper distribution. Australian Printer understands both sides are willing to negotiate a deal, under pressure from falling print revenues as digital news ramps up. Both companies publish competing newspaper titles in the major metropolitan areas of Australia, News Corp owns Sydney’s The Daily Telegraph which competes with Fairfax’s The Sydney Morning Herald. In Melbourne, News Corp has the Herald Sun while Fairfax publishes The Age.
Deal: Fairfax and News Corp in talks to share print facilities
However, if a deal was to be struck it is expected that both regional newspapers and metropolitan titles would be affected. Australian Printer understands the merging of News Corp and Fairfax’s regional newspaper distribution channels could offer the most savings as more titles are distributed in remote areas. Regional newspapers appear to have borne the brunt of digital disruption in Australia. For its 2015 full year results, APN News & Media reported a 27 per cent profit drop in its Australian Regional Media (ARM). Following the results, APN chief executive Ciaran Davis announced the company would sell off ARM. News Corp does not have a separate segment for its regional titles, however it recorded an 8 per cent slump in its Australian newspaper revenue for the second quarter of fiscal 2015. Despite this, News Corp is understood to be the main player in assessing a purchase of ARM’s assets. The impending deal between News Corp and Fairfax will not be the first time competing Australian media companies have worked together. In 2006 Fairfax Media, News Corp Australia, APN News & Media and Seven West Media joined forces to launch The Newspaper Works, a not for profit industry body established to advocate the cultural and commercial value of newspapers in Australia. The Newspaper Works most recent campaign promotes the strength of regional news media. It will feature a series of print ads in regional papers with the headline ‘Newspapers are the #1 source of local information’ after gaining support from Australia’s major media companies.
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