In this opinion piece, senior industry analyst Jason Aravanis (pictured below) from industry market research company IBISWorld discusses what the Nine-Fairfax merger and what it will mean for the media industry as a whole.
The Australian Competition and Consumer Commission (ACCC) has approved the proposed merger of Nine Entertainment and Fairfax Media this morning.
Now it’s time to explore the initial issues influencing the merger and what it will mean for the media industry as a whole.
Fairfax has struggled over the past five years, with its revenue declining almost 17 per cent since 2012-13.
The company has tried to cut costs, announcing 115 job cuts in May 2017.
Nine Entertainment hasn’t seen the same sort of declines, but revenue growth has been slow since 2013-14.
The new entity will be a combination of the second-largest largest newspaper publisher in Australia with the second-largest free-to-air television broadcaster in Australia.
It will be 51.1 per cent controlled by Nine Entertainment shareholders, and the new entity will be branded as Nine.
The new company is expected to generate almost $2.0 billion in revenue, making it the second-largest media organisation in Australia, behind the media holdings of News Corporation.
The merger will have significant benefits for Nine, as it will have open up access to Fairfax’s newspapers and online publications, as well as Fairfax’s Macquarie Media radio interests.
However, the merger will have possible implications for how Fairfax operates, putting into question, for example, its regular investigative journalism partnerships with the ABC.
IBISWorld has found that over the past five years, the Newspaper Publishing industry has declined at an annualised 6.3 per cent as circulation numbers have dwindled.
Fairfax has underperformed compared to the overall industry.
Free-to-Air Television Broadcasting has declined by 2.8 per cent over the past five years, as competition from on-demand online operators has increased.
Newspaper Publishing Industry Major Players
Free-to-Air Television Broadcasting Industry Major Players
Google has said it is considering an appeal, after the Federal Court ruled the tech giant had misled consumers in regards to how it collected location data from Android devices. The decision comes as a major win for the ACCC, which initiated the court proceedings in October 2019. The competition watchdog argued that Google misled […]
Nine has named the judging panel for its much-anticipated State of Originality, Australia’s richest advertising award, aimed at making State of Origin the equivalent of Australia’s Super Bowl in advertising terms. Announced at Nine’s Upfront last September, the winning campaign will take home much more than a trophy – there’s $1 million in advertising inventory […]
British supermarket Marks & Spencer has taken an intellectual property claim against fellow supermarket ALDI over the latter’s Cuthbert The Caterpillar Cake, which they allege is too similar to their own iconic Colin The Caterpillar Cake. Colin the Caterpillar (pictured above) has been a staple of birthday parties across the UK since 1990, when the […]
We all felt helpless in the face of 2020’s constant barrage of disasters and catastrophes. And 2021 hasn’t let up either. Last year, Australian Red Cross experienced its biggest demand since World War II, so it has responded with a new brand campaign bringing attention to this overwhelming feeling and highlighting its 106-year track record […]
As Master Chef prepares to launch back onto screens on Monday 19th April, B&T had the opportunity to speak to the show’s hosts, food critic Melissa Leong and chefs Jock Zonfrillo and Andy Allan, who won the show’s fourth season. The three judges first appeared on last year’s Masterchef: Back To Win, which saw returning contestants […]
Undoubtedly one of the most overused slogans in marketing’s and advertising’s history is John Wanamaker’s iconic “half the money I spend on advertising is wasted; the trouble is I don’t know which half”. And it’s a credit to the quip’s longevity that last year the line celebrated a real milestone – its 100th birthday. But […]
The SingularityU Australia Executive Program will take place this may, celebrating leadership at the intersection of the values of humanity and the value of technology. The Elon Musks, Apples and Xeros of the world are taking risks for humanity and creating new technologies that streamline and beautify business operations. They simplify life by providing basic […]
Brisbane media professional and former OMD Australia Account Director Taylor Fielding (pictured) has officially launched TFM Digital. TFM Digital is a specialist media agency based in Newstead which primarily provides media buying services, and strategy development, to businesses chiefly, but not exclusively, within the franchise sector. Prior to the launch of TFM Digital, Fielding spent […]
Judging by the hangovers in the B&T office today you can count yourself damn lucky we even managed this photo thingy.
Launch marketing specialists Five by Five Global have been appointed by FutureFeed to develop their brand, international certification trademark and go to market strategy. The innovative livestock feed ingredient developed by CSIRO, Meat and Livestock Australian and James Cook University uses a specific genus of seaweed, Asparagopsis, which significantly reduces methane emissions in ruminant livestock. […]
Andrew Knowles, partner and co-founder of the corporate communications consultancy Shoebridge Knowles Media Group (SKMG), has won the PR category in the 2021 B&T 30 Under 30 Awards. Knowles received the award at a ceremony in Sydney last night, claiming victory in a highly competitive field that included leading executives from some of Australia’s biggest […]