Billions lost, boards to blame: Colleen Ryan on the rise and fall of Fairfax
A new book positions Fairfax Media as an organisation buffeted by decades of boardroom shenanigans and political deals. Former Fairfax journalist Andrea Carson, who lectures in media, politics and society at University of Melbourne, argues in a piece that first appeared on The Conversation that the picture is a compelling one.
In the same week that Colleen Ryan’s tell-all book Fairfax: The Rise and Fall hits bookstores, Fairfax’s two biggest metropolitan newspapers will place their content behind a metered digital paywall.
If you want to know the long story behind why the Sydney Morning Herald and The Age will soon cost you anywhere between A$15 and A$44 a month to read online when last week it was free, Ryan’s book is a perfect place to start.
She investigates the history of Fairfax and arrives at why Fairfax’s chief executive Greg Hywood found himself in a dire position in June 2012. Hywood, to the surprise of many including staff, announced a company writedown of over $2 billion, 1900 jobs losses, the closure of Sydney and Melbourne’s printing presses, the end of the broadsheet tradition for the weekday SMH and The Age, and the placing of their journalism behind metered paywalls.
I remember back in the early 2000’s when FD was still little ole f2 and everything was run on the smell of an oily rag. Once in a while we’d be blessed with the appearance of CEO Fred Hilmer at out Friday Arvo Meetings. He’d usually pontificate about all the XXX millions FXJ were spending on the Tullamarine printing plant to “future proof” the business. Many of us thought he was insane.
While they were spending sweet FA on the websites and systems, they could have had SEK, maybe REA and CRZ too, but pissed it all away instead. Talk about snatching defeat from victory.
Despite this, it was the best place I ever worked, but by the mid 2000’s it was time to get out.
A great shame.
No surprise Fairfax has lost billions of investors’ dollars. Just surprise Fairfax still exists.
The rural press merger happened at the worst possible time. They edged out David Kirk, someone who could see where the media was going and took steps in the right direction by buying trade me. The rural press codgers did there damage and left, except now they’ve brought one back from NZ who by all accounts is as old school as they come. The only chance that the company will be saved is if the current top level management is edged out and replaced by the digital gurus brought in by the board as ‘consultants’. Watch this space….
Anyone watch Media Watch last night?
Ryan is on the money in questioning what the board was doing. Decades of indulgent prancing and neglect.
Seek has a dedicated job-searching audience but no content (which isn’t apparently ‘King’). If they bought Fairfax however…
…. with the benefit of hindsight…. After all, I’m sure Fairfax aren’t the first company to underestimate the impact of digital. Too, it’s hard when you’re a paper and press business to try and radically transform your thinking in, what really is, massive change. Twenty-plus years ago the long distance bus industry was thriving, it’s hard to go from that to a budget airline business (if that analogy makes a word of sense.)
I find it odd these ex Fairfax people who come out and trash the old FXJ boards and management (Eric Beecher and the like), yet despite them seeing so clearly where things were heading they also haven’t managed to really make any money off this internet thing either once they left Fairfax.
I pay a visit every day a few blogs and sites to read content,
except this web site gives quality based posts.
@ Shamma…. it’s also interesting that “everybody’s an expert” now the horse has bolted… if only Ms Carson had written her “authoritative” expose a decade ago, bestowed all her knowledge then, if she proclaims to be so astute on the subject.
With an original photo by The Worst of Perth in it too I believe.
Comment still being moderated 3 days later?
Apologies TWOP – it slipped through. Up now…
Cheers,
Tim – Mumbrella
Why isn’t Fairfax getting loads of subsidies like our dying car companies are?