(First published in the Nelson Mail and Manawatu Standard, February 27.)
Last week’s papers contained further depressing evidence of
turbulence in the print media.
The Australian owners of the two big newspaper groups, APN
News and Media and Fairfax Media, both reported gloomy financial results.
Unlike APN, which announced a whopping loss, Fairfax (which
publishes the paper you’re reading) at least managed to declare a profit. But it
looked anaemic once the proceeds from the company’s sale of its remaining 51
per cent in Trade Me were excluded.
In the same week, it was reported that APN’s chairman, chief
executive and three directors had quit in a boardroom bustup – proof, if proof
were needed, of continuing upheavals in the industry.
Both companies are struggling with high debt and declining
revenue. Like newspaper companies worldwide, they are dealing with a crisis of
a magnitude never before encountered and sometimes give the impression of
having no clue what to do next.
So it’s not a good time to be in the newspaper business. The
industry is bleeding and morale could hardly be described as buoyant.
I have spent my working life in the print media and it
saddens me to see the industry in disarray, but I console myself that I was
privileged to experience what was, in hindsight, the golden era of New Zealand
newspapers.
From the 1970s till the early 2000s, the industry suffered the inevitable cyclical ups and downs of a capitalist economy but was mostly
prosperous. Several afternoon dailies died as television ate into evening
reading habits. But overall, newspaper readership was steady and revenue from
advertising was such that the Australians coined a term for it: rivers of gold.
Papers were comparatively well-resourced, although of course
we employees never thought so, and they were generally well-managed – the more
so after the many small family-owned provincial titles were acquired by the two
companies that then dominated the industry, INL and Wilson and Horton.
It was also a period of robust journalism, when editors and
reporters were prepared to take risks and to hold the powerful accountable –
something that couldn’t be said of the generally timid New Zealand press of the
1950s and 60s.
So what went wrong? By my reckoning, several things.
Crucially, the classified advertising that once provided
newspapers with much of their income shifted to the Internet, which is why
Fairfax made the smart decision (now reversed) to acquire Trade Me.
Another profoundly significant change was that INL and
Wilson and Horton both fell into Australian hands. Fairfax took over INL –
owner of the Dominion Post, The Press, the Sunday Star-Times and a stable of provincial papers – and APN acquired
the old Auckland family firm of Wilson and Horton, which had the formidable New Zealand Herald as the jewel in its
crown. These ownership changes had consequences.
If there’s one word that characterises Australian attitudes
to New Zealand, it’s indifference, and I suspect that apart from wanting to run
their businesses at a profit, the Sydney-based boards of directors that control
the New Zealand newspaper industry are largely indifferent to what happens
here.
In an industry that so closely reflects a country’s ethos
and culture, that’s a problem.
I believe they also made the mistake of assuming New Zealand
to be just a smaller version of Australia, a sort of more distant Tasmania, which
it isn’t. They not only lack an emotional investment in New Zealand; they don’t
understand the New Zealand market.
Perhaps they should have taken a lesson from another
Australian. Rupert Murdoch controlled INL for decades but was content to leave
the running of the company to trusted New Zealanders. The corporate culture was
unmistakeably that of a New Zealand company.
One sad result of the Australian takeover was the demise of
the New Zealand Press Association, a long-established national news sharing
agency. Because it was foreign to the Australian way of doing things, the NZPA
was disestablished.
I predicted at the time that New Zealanders would know less
about themselves as a result, and so it has turned out.
What else has changed? Well, journalism has been feminised.
Before the feminist lynch mobs assemble, I should explain
that I’ve worked with outstanding women journalists and editors who could match
any of their male colleagues. Of all the editors I've worked for, there was none I respected more than Sue Carty at the Evening Post.
It’s not female journalists I’m concerned about – far from it – but the creeping feminisation of newspaper content.
By this I mean the increasing proportion of newspaper space
devoted to “soft” topics – fluffy human interest stories, gossipy items and
lifestyle-oriented content better suited to women’s magazines. In metropolitan
papers especially, café reviews and profiles of celebrity chefs, fashion
designers, baristas and TV personalities have displaced investigative reporting
and traditional “hard” news about events and issues of importance. It’s not female journalists I’m concerned about – far from it – but the creeping feminisation of newspaper content.
The feminisation of newspaper content runs parallel to
another peculiar trend, the cult of youth. It seems some editors have been
instructed to woo younger readers, even to the extent of publishing articles
written in Generation Y jargon incomprehensible to anyone over 40.
The problem with this approach is that the most loyal
consumers of newspapers are older readers, and it seems perverse to risk
alienating them in pursuit of an elusive, capricious and quite possibly mythical
youth market.
But the newspaper industry’s most destructive mistake of
all, I believe, has been its response to the digital revolution.
Unnerved by predictions of the print media’s imminent
demise, newspapers were panicked into placing their content online, where it
can be viewed at no charge. In doing so, they painted themselves into a corner
from which there is no easy escape.
The theory was that advertisers would flock to newspaper
websites, but it hasn’t happened. I know of no newspaper offering free online
content that makes money from its website. All that’s happened is that
consumers have abandoned the medium that generates revenue in favour of one
where they can read the news for nothing, as was entirely predictable.
But it’s even worse than that, because by ploughing
journalistic resources into online content to the detriment of the traditional
print product, as is undoubtedly happening, the industry is effectively
cannibalising itself. It’s like the trapped animal that tries to free itself by
gnawing off its own leg.
Even more bizarrely, newspaper bosses seem to regard
increased website traffic as a cause for celebration. In effect, they are applauding
their own impending extinction.
Here’s how I see it. Consumers realise they can read content
online, often long before it’s printed, and not unreasonably deduce that
there’s no point in continuing to buy the paper.
Sales consequently decline and advertisers respond by
pulling out of the paper. But crucially, those advertisers don’t seem to be
shifting to newspaper websites, so there isn’t enough revenue from the brave
new digital world to offset the slump in print advertising. Result: a vicious cycle of steady decline.
Am I the only person who sees this as a fatally flawed
model?