the age newspaper

I think most people in Melbourne would be saddened at the steep decline of this once great newspaper. Fairfax's long term strategy was deeply flawed and this is the result.
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http://www.heraldsun.com.au/opinion/death-rattle-for-the-age/story-e6frfhqf-1226059209641

EVERY large city is best served by at least two metropolitan newspapers.

Over the years Melbourne has been served by The Sun, The Age, the afternoon paper The Herald, and their predecessors such as The Argus, as well as a range of other less frequent papers.

Today our thirst for information is also partly quenched by The Australian and The Australian Financial Review, but they are national papers without the local focus.

Now as a result of competition, different buying habits, radio, the arrival of television and computers, the internet, mobile phones, the iPhone and iPad, we are seeing rapid changes. Our news and information are available almost instantly from many sources.

I think we are quickly approaching the time when one of our two major Victorian newspapers will cease to publish, at least in its current form. I predict that paper will be The Age.

I fear we are watching the dying throes of another long-serving business and The Age is heading the same way as The Argus, consigned to the files of museums and libraries.

This death will not occur today or tomorrow, but it is happening and will only be reversed if the board and Fairfax chief executive Greg Hywood, together with his senior executives, can render great change quickly.

For many years The Age has been directing its efforts to a progressively smaller and smaller audience who, while loyal to the masthead, have not increased the sales or readership.

The Age has lost its reputation for journalistic excellence and leadership. There was a time when often its written word led not only the Victorian but also the national debate for the day.

The Age failed some years ago when the "rivers of gold" - revenue from the advertising sections for cars, real estate and employment - were being threatened by new media. The leadership of Fairfax failed to recognise this and did not act to secure the future.

It actually turned down some opportunities that today operate in opposition and are leaders in their field, significantly contributing to the decline in the paper's revenue - including the successful recruitment site Seek.

For some time now the leadership group of The Age has been invisible in Melbourne public life. I well remember how the editor, editor-in-chief or the managing director would be present at business, commercial or even sporting occasions. Not only were they recognised and respected, their views were eagerly sought. I have not seen a public presence of The Age around Melbourne circles for some years.

To its credit, Fairfax in recent times made two purchases - Southern Cross Media, owner of 3AW, and an internet business in New Zealand, both of which today are profitable.

But the newspapers within the Fairfax stable, while still profitable, are seeing their profits shrink at an alarming rate. Today the Saturday edition of The Age is the only publication that is profitable.

The profitability of The Sydney Morning Herald and The Australian Financial Review is also shrinking.

Certainly the introduction of the new media I referred to above is having a major impact, but it is not the only reason for the shrinking of The Age.

No major newspaper can expect to exist and grow long-term unless it is a fierce defender and promoter of the city of which it is a part. In my opinion, The Age has not done that for years.

Some weeks ago an article in The Sunday Age criticised the drive from the airport into the city. Since that article was published I have travelled that route several times, taken on board the criticism and compared the drive from the airport to the city with other similar trips I have taken around the world.

When I drive down the Tullamarine Freeway I find myself on a well-constructed road that is for many kilometres an orderly culvert which has an increasing quantity of greenery on either side. As you approach the gold and red gateway to Melbourne - or the cheese sticks or whatever you wish to call them - you see the tops of the higher buildings that form the city.

Passing through the cheese sticks, you enter the wonderful but short metal tunnel before you approach the Bolte Bridge, and as you climb the bridge the full beauty of the city unfolds before you on your left.

You have passed through the gateway and arrived in this wonderful cosmopolitan city that is Melbourne. For visitors who explore the city, its laneways, restaurants, galleries, museums, sports venues or the many parks and gardens, Melbourne is as good if not better than any other major city in the world.

A newspaper must love - or at least be proud of - its home, the city to which it caters. I get the feeling that The Age has not done so for some time.

The paper once had the country's best journalists and investigative team, both by reputation and deed. They were the news-setters for the day, around the country. They channelled considerable resources into investigative journalism, uncovering and pursuing matters of public interest.

But today the paper is more a follower of stories, instead of the crucial aim of breaking stories - surely the lifeblood of any masthead.

As The Age has shrunk in quality and profitability, so too has the paper's management been forced to make cuts to keep the empire afloat. Now the most dramatic decision has been made, to outsource the sub-editing. While such outsourcing is possible, it strikes at the heart of a newspaper's control of its own work. It will change forever the so-called independence of the newspaper.

Clearly it will reduce substantially the number of employees on the payroll, but the damage to the paper's vital independence will have greater effect.

This week, the Fairfax group announced it was willing to sell its radio network. Why would you sell a profitable contributor to your bottom line unless you were trying to boost the share price in the short term, or responding to pressure from those analysts who believe such an asset is not an appropriate part of your stable?

Radio is a crucial source of news dissemination and will be around for a very long time. Why would a media group not continue to invest in its stable of radio stations?



THE only reason I would countenance the sale of the radio division is if there is a tangible plan to improve the quality of the newspapers or if there are identifiable targets available for purchase in new media.

Even then, any such purchase or development of a new product involves risks that Fairfax has already demonstrated in the past it has not appreciated or has not managed well. What's changed?

Recently I was contacted by an employee of The Age to lend my name to a campaign to oppose the latest decision to outsource the paper's sub-editing. I can understand the disappointment and frustration of those employed by the paper, but what is the alternative offered by the staff? The paper is rapidly heading towards red ink, although I am sure Hywood, the CEO, has looked at all the alternatives for the short-term survival of the company as he tries to build a profitable long-term business model.

So I politely declined the invitation. And I must say I feel great sympathy for the many professionals who turn up to work at The Age each day.

While I write for the Herald Sun, I do not agree with all the writing or each editorial stance this paper takes - as you would have witnessed recently.

True, I have not always been a supporter of The Age, but as I have mentioned already, this city needs two focused, professional papers to ensure a balance of views and leadership.

Sadly, as in life, where The Age and the Fairfax group find themselves now is of their own making - the fault not of the journalists but of management. I wish The Age well, but fear it is too late.

Jeff Kennett is a former premier of Victoria.