Fairfax ‘could drop newsprint’ when broadband rolls out

One way for Fairfax to raise its profits could be to eventually stop printing its newspapers and transition readers to a paid online model, says broker Merrill Lynch.  

The comments come in an analysis of the newspaper sector reported, ironically, in Fairfax’s Sydney Morning Herald today.

The analysis looking at the effects of the planned national broadband network on publishers, says that costs would fall by 45% if Fairfax drops its print editions and that it would need to persuade readers to pay $12.50 a month to receive its output online. As well as the SMH, Fairfax owns The Age in Melbourne.

According to Merrill Lynch, Fairfax – with the strongest mastheads – would have the best chance at making such a strategy work while West Australian Newspapers, now controlled by Kerry Stokes, is worst positioned.


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.