The online world, something existing media don’t understand, is killing mainstream media as sure as low dose strychnine kills a granny.
NBR reports on the slow demise of Fairfax:
Fairfax Media’s New Zealand division posted a 12% drop in first-half earnings as the publisher of stuff.co.nz and the Dominion Post, Press and Sunday-Star Times newspapers said gains in its online revenue didn’t offset the ongoing advertising decline in its traditional print publications.
Earnings before interest, tax, and depreciation fell to $30.3 million in the six months ended December 27, from $34.4 million a year earlier, the Sydney-based company said in a statement. Sales from its New Zealand business were down 7.4% to $181.4 million, with the dominant advertising revenue falling 9.2% to $119.8 million.
Advertising revenue was impacted by weak market conditions in New Zealand, Fairfax said in slides accompanying its earnings presentation. Supermarket, retail and employment advertising declines were offset by strong performance in real estate and health, it said.
The New Zealand division increased digital revenue 43% without disclosing any detail. It also said its flagship stuff.co.nz website retained its top spot among domestic websites, lifting its unique audience 4.6% to 1.8 million in January from the same month a year earlier, ahead of online auction site Trade Me, a former Fairfax subsidiary, which posted a 9.4% decline to 1.7 million. Rival news service nzherald.co.nz, owned by APN News & Media, increased its audience 22% to 1.5 million.