News came out yesterday that Warren Buffett’s Berkshire Hathaway had purchased the business of 63 newspapers from Media General. Plenty of analysts and commentators are perplexed by the move. Some say it proves newspapers have a future while some say the move makes no sense.
Buffett’s explanation quotes in Forbes was simple:
“In towns and cities where there is a strong sense of community, there is no more important institution than the local paper,” Buffett said in a statement yesterday. “The many locales served by the newspapers we are acquiring fall firmly in this mold and we are delighted they have found a permanent home with Berkshire Hathaway.”
Niche smaller market newspapers certainly have a healthy medium term, maybe longer, future. Look at foreign language newspapers in Australia. Sales continue to grow. I don’t have numbers for regional, rural and local papers. I suspect that independently owned titles with a genuine local community focus and connection are doing well.
What can we take from the Buffett move about the future of capital city dailies? Nothing I suspect. However, I do see it as a reminder that we should pursue niche newspaper titles since no other retailer competing with you is likely to do this.
This is the opportunity from the Buffett announcement. To ensure that Australian newsagencies are the go to locations for a diverse selection of newspapers.