Rupert Murdoch writes in the latest issue of Forbes:
Consequently the old media are threatened by the erosion of our traditional profit centers. Certainly we can’t count on things like print classified advertising being around forever.
The same is true for newsagents. We cannot rely on old profit centres.
Old media can survive–and thrive–in this new environment, but they must adapt. We must learn how younger generations of consumers prefer to receive their news and entertainment, and we must meet those expectations.
So must newsagents.
The good news is that we are learning–and fast.
The bad news is that newsagents are not learning fast.
But the future of media is a future of relentless experimentation and innovation, accelerating change, and–for those who embrace the new ways in which consumers are connecting with each other–enormous potential.
The future of the newsagency channel lies in us stopping being newsagents and becoming, well, relevant because today our relevance has slipped.
Rupert Murdoch has a talent for making old media take notice at critical moments in time. He did this in 2005 and again last year. This essay in Forbes continues the trend. It is as much a call to action to newsagents as it is to old media. I hope we take notice.
Has the relevance slipped or has it been gobbled up by the expansionary practices of others? Guess newsagents could always try selling food or grog like nearly every other retailer does these days.
Lee, The relevance of newsagents has slipped as our core products were placed into more and more outlets. The commercial challenge we face is to make our businesses relevant once again. This requires us to stop being process workers and become entrepreneurial. Mark
My dictionary says an entrepreneur is a theatrical promoter. My computer thesaurus can’t decide whether its a capitalist or industrialist. Back to the dictionary which tells me a capitalist is the owner of (especially large amounts of) capital while an industrialist is someone who has highly developed industries. Houston, we have a problem.
Is it true Mark that newsagents’ core products are in more outlets? Do you have any figures to back your claims? I reckon the number of outlets selling newpapers and magazines are actually much less than they used to be, when you consider how many milk bars have closed in that time. There are probably some different type outlets nowadays but are there really more?
Ted, When I wrote the comment I was comparing now to the 1970s. Yes there are plenty more outlets than then. The issue is that newsagents run their businesses today as if such competition does not exist. Mark
newsagents run their businesses today as if such competition does not exist – are you sure about that. I bust my a**e trying to differentiate my business from the ravenous individuals running the local supermarket, my main competitor. These guys are into everything they can lay their hands on as they attempt to exterminate every other retailer in the street – stationery, cards, hardware, nursery product, etc, etc – plus the newspapers and magazines I am forced to supply them with, all within 150 metres of my business. I say “forced” because although there is no subagent agreement in place, News Ltd take a view that because we have been supplying them anyway (a situation we inherited) then as far as they are concerned there is an agreement in place anyway.
Let me say that I am not against supplying them if that’s what is needed “for the good of the industry” (which is a line trotted out at every regional meeting I attend), but given that these guys snip in excess of $200 per week out of my business in commissions that they do absolutely nothing for except scan product out, and keep people out of my shop – people seem to prefer the one-stop shop even if the product offering is inferior – then I’m buggered if I know where to go next other than continuing to differentiate with better customer service, quality product (not helped with the Sovereign crap we are fed by Great News for Some)!