Newspapers are incredibly profitable enterprises.
Tony Hale, CEO of The Newspaper Works – a coalition of newspaper publishers created earlier this year to talk up newspapers – was speaking earlier today at the Media and Broadcasting Congress in Sydney. In his speech, Hale flippantly and without real context derided respected commentators including Jay Rosen and Michael Porter. An easy target was anyone talking down newspapers. Hale reminded us of Bill Gates’ prediction in the 1990s that newspaper and magazine publishers would close. He relied on Gates being wrong to ‘prove’ that today’s naysayers will also be wrong.
Hale took us through an amazing set of numbers covering circulation, readership and advertising. He left off cover price – I guess because in Australia we have seen below inflation rises. While Hale indicated that circulation growth came primarily from the free commuter dailies, he did not present data to address problem the migration of classifieds online. By not talking about this he ignored the elephant in the room.
Hale will need to lift his game if he is to get advertisers believing that newspapers have as bright a future as he suggests. Making fun of commentators may get some laughs but it will not address the impact of the Internet on the print product. While Australian publishers are dong well with their online models, significant costs in their businesses are tied to print and this will have to be addressed as sales of the print product in its present form decays.
As one who relies on newspapers for traffic and revenue for my businesses and for enjoyment to read, I would prefer Hale to take a smarter and, dare I say, more accurate, approach to talking up the medium – especially when speaking at a conference so focused on new media.
What did he say I got wrong?
Usually when that happens, the critics are referring to this post, “Laying the Newspaper Gently Down to Die,” which they fail to actually read. It argues that some owners may be making a deliberate decision to extract the last monopoly profits and get out. But it’s not a prediction that newspapers are dead.
Jay, he had a crack at you without being specific. I am sure most in the audience had no idea since they were from electronic media and online. I have read “Laying the Newspaper Gently Down to Die” and see behavior today in Australia which supports your thesis. Mark