The country’s two major newspaper publishers are back in talks over what would be a historic print and distribution sharing deal, four years after they were called off.
Declining print advertising revenue and circulation coming from a rise in digital news consumption are the driving force behind the resumption of talks.
The talks are encompassing metro, community and regional newspapers. This time around the issue of deadlines is not such an issue, as Fairfax has already pulled its deadlines forward following its move out of Chullora and Tullamarine.
Fairfax switched printing of its two major metro titles to regional sites and downsized from broadsheet to tabloid. Circulations have continued their downward trend ever since.
Just before Christmas News Corp appointed Michael Miller as executive chairman, Miller had previously been boss at APN News & Media where he negotiated a deal with Fairfax CEO Greg Hywood for the two companies to share printing in New Zealand. Miller is thought to be behind the talks.
From the Fairfax side in his last statement to investors Hywood last month said Fairfax is now is in a position to cut print editions of The Sydney Morning Herald and The Age should the publishing division become entirely unprofitable in a move would likely shift Fairfax onto a completely digitised platform.
Hywood has been pursuing a digital first strategy for Fairfax, a print sharing move is likely to be the last throw of the dice as far as printed newspapers is concerned. Last month Fairfax sacked a further 120 metro journalists. Hywood has said he is ‘unsentimental’ about Fairfax pulling out of print.
News has shown more commitment to print, and at present is running the rule over ARM, the regional newspaper arm of APN which is up for sale. Fairfax’s regional business Australian Community Media division is under pressure, earnings plummeted 20 per cent in the first half.
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