Fairfax or Gina-fax? Let’s have the debate before it’s over

The next two weeks will be defining moments for Australia. It’s when Fairfax is likely to morph into Gina-fax. On Tuesday Gina Rinehart, the world’s richest woman, is expected to confirm that she has acquired up to 19.9% of Fairfax. The current Board, led by ex-Woolworths and now Walmart director Roger…

Ndm56zcn-1339928867
Gina Rinehart is poised to seize control of Fairfax. AAP

The next two weeks will be defining moments for Australia. It’s when Fairfax is likely to morph into Gina-fax.

On Tuesday Gina Rinehart, the world’s richest woman, is expected to confirm that she has acquired up to 19.9% of Fairfax. The current Board, led by ex-Woolworths and now Walmart director Roger Corbett, is expected to raise the white flag in their efforts to ward off Rinehart’s bid for control. Rinehart is believed to want two or three seats on the board, and control of the Fairfax’s editorial positioning. And what she wants she can afford to buy.

Running in parallel, Fairfax will announce this week one of the most radical restructuring of its metropolitan mastheads, The Age and Sydney Morning Herald. From July 1 the two papers will be nationalized, that is, converted into one newsroom across both titles. There will be some local differences to allow the content to be rebranded for the Melbourne and Sydney audiences, but two voices in our shallow pool of diversity will become one.

And Fairfax will reduce its editorial workforce on the two papers by around 25% from roughly 800 to 600.

In tandem, Kim Williams, the chief executive of News Ltd, is expected to announce the most radical restructuring of the entire News Ltd workforce with a reduction of up to 1,500 staff.

This perfect storm has been brewing for some time. The decline and implosion of the media was seen as a European or American disease that Australia would avoid, much like the GFC. The seeds of Fairfax’s destruction were born in the mid 1990s when it failed to fully engage, understand and act on the disruptive threats of the internet.

The story of Fairfax’s decline is one of managerial failure. The company has been run by senior executives and boards with no direct experience running a media company. Instead, leaders at Fairfax have been property developers, management consultants, accountants, and rugby players. Those people did not have the experience or understanding of a people-media business to steer the ship into safe waters. Instead they allowed Fairfax to remain at sea while competitors savaged the business. One by one Fairfax was stripped of its classified advertising “rivers of gold”. The jobs went to Seek.com.au, Cars to Carsales.co.au, homes to Realestate.com.au.

And shorn of those easy revenues the only way Fairfax CEOs could “stay in the game” was to cut costs faster than revenues fell (all the while pocketing eye-watering salaries and bonuses).

Instead of having the foresight to embrace and invest in the digital age by bringing together mastheads to work collegiately, Fairfax leadership instead chose to separate the online team from the print team and run them as two distinct businesses, with “Fairfax Digital” competing for advertising revenues with the so-called “Fairfax Publishing”.

In 2007, I was asked to lead a team of three senior executives to visit the most progressive newspaper/media companies in the US and UK and report back to the then CEO, David Kirk. We went to the Wall Street Journal, New York Times, USA Today, Washington Post, The London Telegraph, The Financial Times and The Guardian.

We reported back to Kirk that every one of these had brought together “print” and “digital” into one resource. That is one editorial team, one advertising team and one back office. Kirk flatly opposed doing the same on the grounds the two businesses were both very profitable. And he wanted to keep it that way.

Five years later, with the company’s market value slashed from $7bn to just over $1bn, this integration will finally be imposed next month.

And for the first time in living memory the change will be led by a former journalist and senior editor, the CEO, Greg Hywood, along with the advice of consultants Bain & Co (Mitt Romney’s crew).

But it’s too late to save the Fairfax we know. The share price has collapsed from $5 to 60c or less because no one in the market believes there is a coherent strategy for the company. And that has left the company weak and defenceless to predators such as Rinehart.

Staff, meanwhile, have been living in denial. Though finally last week the penny dropped among the editorial staff that Gina’s tilt at Fairfax will happen. That has led to great despondency, and many rightly concerned about their future. And of course, once in, she is in control, and they will be told if they don’t like it, they can ship out.

What does this all mean? Rinehart is not an investor in Fairfax to earn a return like the rest of the company’s long-suffering institutional investors. She is making her play to change the climate of opinion in Australia.

Back in 2010 she and her fellow mining barons spent $22m to get rid of Kevin Rudd’s proposed mining tax.

And so successful was the campaign that they got rid of Rudd and saved themselves an estimated $20bn in taxes.

Rinehart’s appointment of Australia’s leading climate change sceptic, Ian Plimer, as an advisor to her mining companies is simply a taste of what’s to come. As one senior Fairfax editor remarked, expect this kind of front page once Rinehart gets control. “Exclusive: Climate Change is a Hoax”.

Rinehart aims to change the terms of debate in Australia for good. Her fellow Channel 10 director, “Hungry Jack” Cowin, the burger man, will likely join Rinehart on the board of Fairfax. Cowin has already made clear that the Fairfax Board has every right to set the editorial tone of the papers. And that Andrew Bolt, who already has the Bolt Report show on Channel 10, would be welcome at a Rinehart dominated Fairfax to “balance the message that’s being communicated to the community”.

With such a program, Rinehart and Co may well tell staff and readers that if they don’t like it they can go elsewhere. The problem in Australia is where to? The media is in crisis elsewhere in the West, but usually there is a choice, somewhere else to go to get a job or to get your news and commentary. Right now if you live in Hobart, Adelaide, Perth, Darwin or Brisbane you have no choice, just the one paper. In Melbourne and Sydney, there was choice.

Readers who, like Rinehart, prefer the editorial tone and message of The Australian, with its line on mining tax little different to that run by BHP, will be spoilt for choice. And scepticism towards climate change will now be shared by all three quality mastheads. Those with different views will have limited options.

Is this the modern, open, progressive, democratic, tolerant, knowledge-based, clever country we aspire to be? Or are we seeing the same rise of the oligarch as in Russia where the resource-rich billionaires also dominate the media? Or Italy, where Silvio Berlusconi owned the majority of the TV stations and newspapers and imposed his right-wing agenda, and ultimately won control of the country as Prime Minister?

This is an important moment for all those who cherish democratic and pluralistic debate and a freedom to information that is factual and reliable to inform decision-making.

Given that both the Fairfax and News Ltd papers are “interested parties” in the outcome, you will be hard pressed to get a full and dispassionate account of the next few weeks' momentous events.

That is what The Conversation will aim to provide. We will be leading a debate over the next few weeks, and keeping tabs on the media developments. We hope you will engage with us through your comments and suggestions for the coverage you would like to see us run. It’s important to have your say while the matter is live, rather than bleat about it afterwards.

Andrew Jaspan is editor of The Conversation and the former editor-in-chief of The Age.

Sign in to Favourite

Want to follow The Conversation?

Sign up to our free newsletter to get the day's top stories in your inbox each morning, with a special wrap on Saturday.

Spinner
Become a friend of The Conversation and donate

Join the conversation

110 Comments sorted by

  1. Matthew Thredgold

    Software Engineer/Secondary Teacher

    Print media is dead.

    With no slight to Ms Rinehardt intended, the fat lady has sung.

    report
    1. Mike Hansen

      Mr

      In reply to MarkWatson

      The Age has moving steadily to the right for a while - along with its core demographic of aging baby boomers. It has attempted to attract younger readers by turning a large part of the paper into a lifestyle magazine.

      I am a long time subscriber but I find that I am reading less and less of the paper. I subconsciously skip any article by Michelle Grattan - she may have written an original piece back in the 80s but she has become tediously boring, conservative and predictable. Regular boring columns from political has-beens Peter Costello and Amanda Vanstone and the paid shills from the IPA are part of the Age's staple.

      In some ways, Gina-fax will be a full-stop on a process that started a while ago. I now get most of my news and opinion from internet blogs. Feed readers allow me to sample the best of blogs and newspapers from across the world.

      report
    2. ManO'Steel(town)

      ManO'Steel(town) is a Friend of The Conversation.

      logged in via Twitter

      In reply to Matthew Thredgold

      With the Fairfax announcement of 1900 job cuts, how prophetic, Matthew, is your observation. The irony is the Fairfax move to sack the golden geese (journalists) while embracing a tabloid format is akin to the corpse rising just long enough to light the fires for its own cremation.
      On the other hand, as many contributors have commented, the big business, vested interest news agenda has left many of us unimpressed (underline press) and seeking news and information alternatives online.
      So what next? Doubtless the Fairfax corpse, stroked by the talons of Rinehart will do its best for a second coming online, albeit as a false prophet surreptitiously howling her desires, like a whipped dog doing its mistress's bidding.

      report
    3. Jeremy Hall

      PhD student

      In reply to Matthew Thredgold

      Question then: is the aim just to hasten the death of the company? No doubt she'll be happy if she can find a customer base for pro-mining propaganda... but failing that, would it be considered worthwhile to get rid of the only major, (somewhat) liberal media company in the country?

      report
    4. John C Smith

      Auditor

      In reply to Mike Hansen

      My personal experience with one of the broad sheets of Fairfacts goes a long time, the days of great editor Creighton Burns. But even with a man like him there were foreign agents working in the Age. I had to personally bring the matter to his attention and the the agent went to work overseas.

      So whatever happen in the media is nothing new in the Western media.

      report
    5. Tony Alessi

      logged in via Facebook

      In reply to Mike Hansen

      Mike, I agree with you that The Age has become very lifestyle but unlike yourself or many other people reading sites like this, the majority of our population have been dumbed down so far that they don't realise that they can get other opinions or views through the new media channels.

      It is becoming 1984 but Big Brother is not the govt, instead it is the mega-rich mining magnates that are using double-speak

      report
  2. Marc Hendrickx

    Geologist

    So Andrew, what plans does the con have in place when its government funding is withdrawn?
    A subscription model perhaps?

    report
    1. Fred Pribac

      logged in via email @internode.on.net

      In reply to Marc Hendrickx

      Count me in! The con is one of the few internet offerings that I would happily pay
      to recieve.

      report
    2. Anthony Nolan

      Ruminant

      In reply to Fred Pribac

      Yes, I'd cop a subscription fee as well. I find specialist knowledge far more informative than anything I've read in the MSM for about two decades.

      report
    3. Sherry Mayo

      logged in via Facebook

      In reply to David Collett

      I just emailed the 'support us' contact asking them to set up credit card donations. Bank transfer is a bit clunky and they might get more support if they make it easier!

      report
  3. James Jenkin

    EFL Teacher Trainer

    Is the problem concentration of media ownership, or the wealth and political opinions of Gina Reinhardt?

    The first point seems valid. The other points just reflect prejudices. However they are confused in this article.

    report
    1. Grendelus Malleolus

      Senior Nerd

      In reply to James Jenkin

      James the two are intertwined in this case. Concentration of media ownership in alignment with any ideological perspective is generally not the best idea. In the Soviet Union it was well understood that Pravda was fine if all you wanted to hear was the view of the Communist Party but generally useless for actual information. If Gina exerts editorial control in line with her personal opinions - and regardless of reality, that is a risk to the effective operation of the fourth estate.

      report
    2. James Jenkin

      EFL Teacher Trainer

      In reply to Grendelus Malleolus

      Hi Grendelus, fair point, but if Rinehart wants to make a buck she'll both have to increase readership and differentiate Fairfax publications from News. It would be a crazy business decision to create a carbon copy of the Oz.

      report
    3. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to James Jenkin

      James,

      Gina's not about making money from Fairfax - at least not directly. This is buying an outlet to spruik her "vision" for Australia ... this ugly amalgam of national and self-interest.

      I stuck a link up somewhere today of Vice Commodore Monckton laying out the need for the extreme right to buy a media outlet in February - he was hoping for a satellite but got this instead. Jo Codling (Nova) and Andrew Blot get favourable mentions in dispatches. I thought I posted here but could have been elsewhere ... been busy today. If you'd like to see it let me know.

      Don't be thinking of that small l liberal Australian as a model - a hotbed of extreme leftism by any decent standard - think more Fox News ...

      report
    4. James Jenkin

      EFL Teacher Trainer

      In reply to Peter Ormonde

      Hi Peter - I'm sure she wants influence, but she won't have any if the Age and the SMH can't sell papers.

      report
    5. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to James Jenkin

      James,

      Have a watch of the Monckton strategy talk I posted above ... for some reason these dimwits think that a Fox News style operation can work in Australia ... straight on "news" but slanted commentary. Looks like Monckton knows as much about Australia, the media as he does about science.

      But yes to be honest I'm pretty relaxed about Gina riding Fairfax into the dirt ... the Strip-miners' Gazette or somesuch ... it will die a quick death and will be an object of ridicule as it should be. We're a sensible lot by and large but she can possibly get some influence in Canberra - they'll believe anything they read those fellas.

      report
  4. jack adams

    Economist, accountant, grandfather

    Of course missing from this “analysis” is the minor issue of whether the old-line media is dying because people have alternative sources for their information on the internet and have discovered that they have been fed the news with a leftist slant for decades. A perfect example in the USA is that the Wall Street Journal is profitable and expanding and viewed as balanced in coverage vs. the Washington Post, New York Times and other left-centered media which are hemorrhaging red ink just like shade of the reporters who work for them. Perhaps the changes in the Australian media will result in a public that has confidence and trust in what they read when reported fairly as they obviously do not have now if the market value for the papers is any guide.

    report
    1. Peter Sheldon

      Forestry Student, Germany

      In reply to jack adams

      You seem to think that 'confidence and trust' means that people want to hear only what will benefit Australia's unsustainably booming economy. I think you should give the Australian public more credit than that.

      report
    2. Brad Stringer

      logged in via Facebook

      In reply to jack adams

      The Wall Street Journal - another quality Murdoch production.

      Jack, the issue is diversity. You may not agree with the leftist media, assuming that this is even an appropriate label, but surely you can see why an Australian media with a single voice (in-line with Gina and Rupert's shared world view) is not a good thing.

      report
    3. jack adams

      Economist, accountant, grandfather

      In reply to Brad Stringer

      so where was the outcry about "diversity" when the left controlled the media?
      If the echo chamber of the dinosaur media that controlled it for decades was all that good, it would have prospered instead of lost the race in a public where alternative points of view were allowed. Even Pravda today has more diversity in opinion than most of the leftist media. they had to do it to gain some credibility so lacking in many of the dinosaur media today. It has nothing to do with monopolies, which all contain the seeds of their own destruction. It is called those who live by the sword of bias and deceit will die by it. And it will happen to The Age or The Herald under the new regime just as it happened when the left controlled them.

      report
    4. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to jack adams

      Jack, when and where did the left control the Australian media?

      Now you might be able to make a case that there are "left-leaning" journalists about - you know Moscow Ross Gittins and the deeply sinister Mike Carlton but is this control?

      Or is it all that seedy investigative stuff you find disturbingly subversive?

      Sounds to me you just want to be rid of people you disagree with rather than see a diverse spread of views ... that's OK but don't pretend the left controls what you read.

      Just say you want Andrew Bolt and an editorial penned by Alan Jones over your morning tea. Every second taxi-driver in the country will agree.

      report
    5. Anthony Nolan

      Ruminant

      In reply to jack adams

      Yes, I also am incredulous at the claim that "the left" ever had "control" of Australian media. The Fairfax family? Left? By what means left? Or, as you say Peter, is it merely a case of Jack not wanting anyone to read views with which he disagrees? Here's the hit list of the SMH "left" that will have to be purged to suit Jack'n'Gina's agenda: Elizabeth 'The Fanatic' Farrelly, Mike the Menshevik Carlton, 'Pirate' Pete Fitzsimons, Ol' Red Adele Horin and Moscow Ross Gittins (thanks Peter for that one).

      report
    6. jack adams

      Economist, accountant, grandfather

      In reply to Peter Ormonde

      I encourage debate and discussion, unlike the ABC or BBC. The problem that the left has is that they think they are the center. They are not. But they judge the world based upon their point of view. So their supporters think that what they read, and agree with, is the center. It is not. It is why those who are exposed to other points of view, and come up with a different analysis of "the truth" are viewed as "extremists" as the author of this thread does and then comdemn dissent as a hostile takeover of their domain when in fact they cannot deal with those who think differently than they do. They hate the loss of influence and control that comes with people exposed to an alternate view of the world. Much like Putin.

      report
    7. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to jack adams

      No Jack you're right - the centre is obviously over there somewhere - closer to the right and down a bit - well down quite a lot really.

      Let's see how Gina's new toy covers the impact of the high dollar on Australian manufacturing, or the progress of land claims on mining sites, or the carbon price - in fact I wonder if any issue that conflicts with her real commercial interests will ever be covered again. Debate and discussion - you think Gina's interested in that? Really?

      I look forward to the breathless reports from the first SMH/Age journalist to be embedded with the next "Convoy of No Consequence".

      report
    8. jack adams

      Economist, accountant, grandfather

      In reply to Peter Ormonde

      Well there you go. Thinking that the discredited media is the source of information in today's internet world is a bit unobservant of reality. if Gina screws up as badly as those who killed the papers she has bought for pennies to the dollar, then she will pay the same price that they have. The end of their influence, which is what the left hates the most. Much like the Greek populace that thought they could live the good life without having to live the real life of hard work. I look forward to some balance of real reporting about things such as global warming instead of the nonsense that is masked as "science" under the "hide the decline" hockey sticks of the left.

      report
    9. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to jack adams

      No I am under few illusions that the mainstream media systematically cover news - or that they do so "objectively". I have a few favorites whom I read selectively but by and large the traditional media have been left at the starting gate when it comes to news or even clever writing.

      As to finding some comfort in more "balanced" reporting of Climate Change, it's true that the science is most uncomfortable and I'm sure that there will be a much greater emphasis on reassurance, business as usual…

      Read more
  5. Marc Hendrickx

    Geologist

    Jaspan sees some sort of weird conspiracy in the appointment of Ian Plimer to a mining company. He's a geologist FFS!

    report
    1. Mike Hansen

      Mr

      In reply to Marc Hendrickx

      Naive? Marc knows exactly who Ian Plimer is - disingenuous is the more appropriate word.

      Of course Marc who is a self appointed auditor of the ABC's "bias" will be on the job when the junk science from Plimer's Heaven & Earth is reprinted in the Gina-fax Age and SMH. Hang on - where did those flying pigs come from?

      report
  6. Anthony Nolan

    Ruminant

    Thanks Andrew for an excellent lead into this subject. I shall avoid doggerel where possible. I agree that these developments have about them a sinister "age of the oligarch" taint. The Conversation is breaking new ground and proving the value of independent publishing with every day.

    Now, boys, that's Jack, Mark and James, not one of you has even mentioned the fundamental concern which is the role of an independent media within liberal democracy. This leads me to conclude that you know little and care less about how to nurture a vigorous democracy.

    Q: How do you know when a team of IPA astroturfers is at work?
    A: You can here them muttering to themselves "Green side up. Green side up".

    report
    1. markus fitzhenry

      logged in via LinkedIn

      In reply to Anthony Nolan

      "Andrew co-founded The Conversation. He previously edited The Age, The Observer (London), The Scotsman and Scotland on Sunday. He was Editor-in-Chief of The Big Issue (London), and he founded and edited the Sunday Herald in Scotland. He is the Asia-Pacific Director for Innovation Media."

      Enough said. All left publications there, so I'm sure his opinion isn't biased.

      The conversation might be able to champion their independence but not that the publication is fair and unbiased. Would James suggest Fairfax cannot exercise the same editorial controls as the patrons of The Conversation?

      report
    2. Anthony Nolan

      Ruminant

      In reply to markus fitzhenry

      In order to engage in discussion on the subject of "left" media, amongst which you count the publications cited immediately above, I have to demand of you some explanation of what you mean by "left".

      Don't shirk this.

      There are many understandings of what constitutes "left" and as many again as to what constitutes "left media". We may not agree about any of them but at least if you define what you mean then it might be possible to respond meaningfully to your concerns without becoming entangled in the usual confusions about, for example, the differences between the "left" and "liberal" or between liberal individualism and communitarianism.

      For clarity I'd suggest we anchor the terminological discussion in the Stanford Encyclopedia of Philosophy (http://plato.stanford.edu/).

      report
    3. Mike Hansen

      Mr

      In reply to markus fitzhenry

      The Big Issue? Of course markus - it is so obvious now that you point it out - compassion for the less fortunate is so not an Ayn Rand thing to do. Andrew Jaspan should be ashamed of himself - he should try to be more like Gina - grab, grab, grab and remember no playing favourites with family.

      report
    4. markus fitzhenry

      logged in via LinkedIn

      In reply to Anthony Nolan

      Doubtful that philosophy actually defines a truly static conception of political thought.

      Nevertheless, Liberals or the right in a political context, insist that an economic system based on private property is uniquely consistent with individual liberty, allowing each to live her life —including employing her labor and her capital — as she sees fit. It has been argued, for example, that all rights, including liberty rights, are forms of property; others have maintained that property is itself…

      Read more
    5. markus fitzhenry

      logged in via LinkedIn

      In reply to Mike Hansen

      Of course miners are not the greatest force in closing the gap in Australian society between brothers of different hues and the direct actions of starry eyed compassionates have moved the less fortunate to stratospheric levels. Twiggy Forest is a demon for doing better than the progressives on that score.

      As for grab, grab, grab, Gina is also one of the biggest investors and taxpayers giving all of us a guilt edged economy the truly less fortunate of this planet can only dream about.

      How naive and deluded to Mrs Gina Rinehardt isn't a humanist. Read some of her poetry for better insight into what her true psychological make up is.

      report
    6. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to markus fitzhenry

      Put short Markus, freedom of the press is owning one, to misquote Mr Liebling..

      One of the disconcerting things about the likes of The Conversation is that it lets any old ratbag with an axe to grind (or in my case, a whole truckload of chainsaws, chisels and other sharp objects) stand up and behave like an equal, like a member of the propertied classes. A deeply subversive business this. Leveller technology. Which is curious for me having a soft spot for Luddites in the past.

      There is an…

      Read more
    7. Anthony Nolan

      Ruminant

      In reply to markus fitzhenry

      Alright. A reasoned response although with many areas of disagreement. However, there is more at stake here than the old left/right dichotomy suggests especially around positive and negative concepts of freedom:

      "We are dealing with a new political form of society whose specificity comes from the articulation between two different traditions. On one side we have the liberal tradition constituted by the rule of law, the defence of human rights and the respect of individual liberty; on the other…

      Read more
  7. Peter Ormonde

    Peter Ormonde is a Friend of The Conversation.

    Farmer

    Pluralist? To the extent the broadsheets permit the occasional sally into analysis and considered opinion perhaps... but a long way from reflecting the actual diversity on offer.

    I have no doubt whatsoever that under Lang Hancock's daughter the SMH and Age will be under enormous pressure to become the mouthpiece for rapacious greed and extractive industry. Time and subtlety is not part of the make-up for our mining "entrepreneurs" like Clive, Gina and the like.

    But I also have no doubt that…

    Read more
    1. Ken Swanson

      Geologist

      In reply to Peter Ormonde

      So what would an acceptable media owner profile look like if not Gina the Miner?
      A Super Fund with vested interest in financial markets and their manipulation.
      A large telco with a vested interest in curtailing the NBN.
      A large union owned investment vehicle with a vested interest in promoting restrictive work practices and anti Liberal Party sentiment.
      A car industry investment vehicle with a vested interest in continuing car subsidies and restricting free trade.
      The list goes on.
      And none of them would give up their right to direct the "product" content if it meant improving returns.
      Just how do you see this panning out to your satisfaction?

      report
    2. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Ken Swanson

      None of the above actually Ken.

      Ideally I'd like to see Australian newspapers run by folks who just want to make a quid out of it - who rely on a solid and hopefully expanding readership attracted by good journalism, skilful writing, humour and basically quality of content ... who leave their journalists alone to write news and analysis without the routine slanting and interference from the owners that occurs for example whenever there's something like the Leveson Inquiry in Braitain - have you…

      Read more
    3. John C Smith

      Auditor

      In reply to Ken Swanson

      You missed what about a Indian, Chinese or a Mexican investor? With or without FIRB.

      report
  8. Richard Lawson

    Author/Musician

    We were warned, national governments past and present also. Now the pursuit of advertising dollars in exchange for informed high level reporting sees the last of the valid broadsheets finally nailed. In all conscience how could anyone play lickspittle to the likes of one of the robber barons? But watch the rats hit the decks running once the SS Reinhardt sails into port. Journalism would not be a wise career move at this stage of the game, not in the Land of Oz or anywhere really. I guess that means it's up to us out here in the bleaches to act as bulwarks to the fabrications that are no doubt on their way via the Board of Fairfax.

    report
  9. Daniel Sinclair

    logged in via Facebook

    This type of conservative takeover is in part a response to the equal and opposite error of that made by the liberal media and climate change proponents themselves... They are dishonest and disingenuous with the facts, they bully and ridicule honest dissent to their exaggerations and deceptions, then act all indignant and panicky when their conservative counterparts come in and do the same thing. If they had supported reason and scientific caution instead of climate change fearmongering, we wouldn't have this kind of equal and opposite problem...that of the political manipulation of science.

    report
    1. Matthew Thredgold

      Software Engineer/Secondary Teacher

      In reply to Daniel Sinclair

      "the liberal media and climate change proponents themselves... They are dishonest and disingenuous with the facts"

      No doubt you'll say it's bullying and ridicule, but can you even see a planet of objectivity from wherever it is you're standing?

      "If they had supported reason and scientific caution instead of climate change fearmongering"

      I am belly laughing at you for that one.

      report
    2. Grendelus Malleolus

      Senior Nerd

      In reply to Daniel Sinclair

      The political manipulation of science is what has seen public opinion shift from accepting AGW towards rejecting it. The science has not changed in that direction at all - in fact the evidence has continually grown to support the basis for understanding that human activity is causing climate change. What has changed has been the political message and the media reporting of the science by Rupert the Fox and his ilk.

      report
  10. Marian Macdonald

    logged in via Twitter

    The whole thing makes me feel sick but thank goodness for social media and the rise of online publishers like The Conversation.

    Wearing a marketer's hat rather than a dairy farmer's for a moment, I wonder how The Age will differentiate itself under the new regime. Marketers have traditionally used the broadsheet to target AB demographics but when it slides, I expect this otherwise difficult to reach group will desert it with the marketers close behind.

    report
    1. Anthony Nolan

      Ruminant

      In reply to Jonathan Li

      This breaking news from Crikey:

      "Fairfax Media will move The Sydney Morning Herald and The Age to a tabloid and sack 1900 staff — including about 380 editorial positions — as part of a massive cost-cutting drive to save the media giant from corporate oblivion."

      Staff's best option is an immediate burnt earth policy: refuse to publish either paper and drive Fairfax into the ground. Thereafter, see what rises from the ashes.

      report
    2. jack adams

      Economist, accountant, grandfather

      In reply to Anthony Nolan

      what will arise from the ashes is a public that will read a newspaper that is convenient to read on the train instead of the original broadsheet that was best suited to those reading them in their lounge chairs. The content is what matters, and the Herald and The Age have failed on so many dimensions as journalism that it is amazing that anyone would pay a farthing for them.

      report
    3. Anthony Nolan

      Ruminant

      In reply to jack adams

      I haven't paid for 'The Telegraph' in many a year because, in my days of train travel, they were freely available as discards. Now, you don't read 'The Telegraph', you look at it, usually regretting the absence of a handkerchief with which to wipe off the cheap, oil based print ink.

      report
  11. Richard Hanson

    Communications Coordinator

    There are two issues here which i would like to read some analysis about. Firstly, how will the News Limited papers react to this change in editorial policy? Up until now, there has been a relatively cosy divide in the Australian newspaper market. Fairfax had the left flank and News Limited had the right. And for a long time, that was very profitable for both of them.

    Now profits are drying up across the board and Fairfax will now be targeting the same readers as News Limited.

    Which brings…

    Read more
  12. Eric fisher

    PhD student at University of Western Australia

    Tales of my experience with a media tyrant
    Sometimes the myth of the media mogul ogre is scarier than the reality. All it takes is honesty and courage to put it to the test.

    In the 1970s, I worked for a man who many regarded as the arch manipulator of news content, Sir Frank Packer. I was general manager of his television station GTV9 in Melbourne. During that period, Sir Frank sold the Daily Telegraph, his Sydney newspaper. This left him time to focus on his TV stations and the Woman’s Weekly…

    Read more
    1. Eric fisher

      PhD student at University of Western Australia

      In reply to Anthony Nolan

      You clearly miss the point. I was rebutting the observation that 19 per cent ownership ( or complete in the case of Packer) means that the one with the power will automatically manipulate media content. I can give examples of plenty who did not have the guts to say no. They have a shorter life span than those that do.

      The danger to democracy lies not with Gina Rinehart getting two seats on the board of Fairfax and, therefore, the power to stifle reasoned political commentary. The danger lies…

      Read more
    2. Anthony Nolan

      Ruminant

      In reply to Eric fisher

      I certainly don't want to discourage the idea that one good man can hold the line for democracy or that people ought not to stand up to power. However, in the light of the exposure of Murdoch's behaviour in the UK and elsewhere the claim that media ownership does not influence content is just not credible. I'm sure you had some lovely drinks with Sir Frank but other people tell other tales that go to as much to his reputation as a scheming bully as yours do to his qualities as a hands off democrat.

      I long ago gave up expecting much in the way of independent reporting, as distinct from independent analysis, from the mass Australian media. As to the conduct of the current crop of Labor parliamentarians all I can say is that it is more than I can bear to watch.

      report
    3. ManO'Steel(town)

      ManO'Steel(town) is a Friend of The Conversation.

      logged in via Twitter

      In reply to Eric fisher

      Sir Frank Packer is dead. However, Rinehart is not. She is a succubus seducing Australian politics and society. She has no interest in the future of Fairfax or media, or democracy, other than how it will help realise her real plan. When she finishes with Fairfax she cast aside its husk like a nibbled nut.

      report
  13. Markie Linhart

    Rouleur

    So I guess we'll never see The Age as a berliner…
    Shame really .

    report
    1. alexander j watt

      logged in via Twitter

      In reply to Markie Linhart

      Yes the guardian was very clever in downsizing to that portable form while keeping a certain distance from the tabloid. However I believe it was extremely expensive as they had to import all the Berliner presses from Germany.

      The Age seem to have missed their chance to be the Guardian of the southern hemisphere (as this article points out Fairfax never got their online act together) but I don't see any other contenders from the print media. Wish the Canberra Times had the money for a better website and a cool but cynical lefty editorial.

      report
  14. Michael Gioiello

    High school music teacher/ freelance Opera singer

    How can anybody call this system unbias, democratic and balanced? How can normal people trust these sources of the media at all when they are controlled by a few extreme right-wing individuals who manipulate what the general public are able to access. These individuals will most definatley push their own financial and political adgendas through their ownership of these media outlets. Why else would they want gain control? The government should be doing more to regulate the system, so these extreme situations do not take place.

    report
  15. DOFAPA1

    logged in via Twitter

    Joining print and digital wouldn't have solved it at a higher commercial level. They lost their classifieds when they didn't need to lose them. They should have eaten themselves to get their online future via decently managed and incubated innovation or acquired any of the emerging entities of seek, carsales or REA when they had the opportunity. They had the opportunity to get each one and passed it up each time....that's four big misses: couldn't do it themselves and then missed three very basic acquisitions when their future downfall should have been staring them in the face. Hilmer, Kirk and those just before them all had parts of those chances and they all blew it. That's a fairly systemic set of failures. Something is wrong about the whole thing is managed. And it probably isn't just who they put in charge.

    report
  16. David Leigh

    logged in via Facebook

    It goes without saying that print media is a thing of the past. Indeed, the writing has been on the firewall for many years. Advertising revenues have shifted progressively from press to web-based editorials, in much the same way as free-to-air TV has suffered a decline in sustenance. As this article shows, the fault of the Fairfax demise lies clearly with managements' failure to "move with the times" (pun intended). What is worrying and should be contested at the highest levels of governance is…

    Read more
  17. John Bloomfield

    Retired Engineer

    Corporations worldwide have come to realise that if they own and control the means of dissemination of information to the populace they can destabilise or destroy any elected government that limits their continued operation or growth – no matter what the consequence to the populace, environment or future sustainability.

    Any control and regulation previously imposed "in the national interest" by governments of countries throughout the world has been successfully reduced/diminished by the control…

    Read more
    1. jack adams

      Economist, accountant, grandfather

      In reply to John Bloomfield

      I suggest you read more of what is availiable on the internet. Yes there is a lot of nonsense mixed in with reality, but if all the print media vanished tomorrow, you would probably be better informed than picking up a copy of your favorite rag, just like losing your favorite blanky.
      Yes thousands of leftist media writers would lose their jobs, but they would have lost them because they were not honest with their audience. If they have any credibility, they will find many followers willing to pay for their points of view. Modern day "journalists" are the equivalent of witch doctors who read their bag of bones and can't understand why someone refuses to pay for their services when there are alternatives to their "reports."

      report
    2. jack adams

      Economist, accountant, grandfather

      In reply to Peter Ormonde

      The Age went broke because its entire staff failed to make it worth buying for a reading public. It doesn't make sense to single out a few of the more notable scribblers who are held in high esteem by their fellow leftists when the paying public that paid their salaries thought them all to be of such low value that they went to other sources for their news when it became available. I suspect that the BBC, without its ability to reach into the pocket of the taxpayer would be in the same position.

      report
  18. ManO'Steel(town)

    ManO'Steel(town) is a Friend of The Conversation.

    logged in via Twitter

    Once you understand the unstoppable Fairfax takeover is akin to the purchase of a spare television set for Gina Rinehart, her plan isn't too hard to follow.
    Her editorial stooges, such as the very compliant Ian Plimer, or the bought and paid for opinions of Journalistic lightweight, Andrew Bolt, will be quickly implanted. Then she will set about influencing electoral outcomes until the Earth becomes flat once more.
    Clearly for Rinehart, as demonstrated through her efforts to own Fairfax, this…

    Read more
  19. Bob Bingham

    Mr.

    The big difference in news these days is that we all get to read about it within ten minutes of it happening. We doe not need two dozen journalists for every paper. While the world is desperate for the laaest news it only need ten per cent of the journalists it used to. Its also easy to set up. Journalists and advertising staff squeezed out of Fairfax can be back in business within a week on line and probably making money.

    report
    1. Sean Lamb

      Science Denier

      In reply to ManO'Steel(town)

      Its not so very different now - both Fairfax and News Ltd are every bit of as compliant to Western foreign policy agendas as the Voelkisch Beobdachter.

      Notice how they automatically fall into line over Libya and Syria. Our system is a two party state rather than a one party state, but the difference in terms of media diversity is only quantitative, not qualitative.

      report
  20. David Nicholas

    Freelance Journalist

    Well, hell, Andrew. That Fairfax was advised that the writing was on the wall five years ago, makes me just shake my head in wonder. Hiding your head in the sand is a choice, but not a very good one.

    And as I commented on Professor McKnight's piece, that Fairfax was not more aggressive over the years acquiring interests or buying into television and adapting to new circumstances makes the company ripe for acquisition. Ripe is probably a bad word, but going from plum ($5 billion) to prune ($1 billion…

    Read more
  21. George Naumovski

    Online Political Activist

    it is not so much the business elites being greedy, it is the law that allows them to do what they want. The elected/voted/democratic government changers the laws to suit the business elites and so it is we the vast majority that have no real say and live to serve them. Gina will buy out certain media companies and run it to serve her own interest and who is going to stop her? No one. We only think we are free and have democracy but we do not!

    It is time for the ALP to govern for the vast majority instead of the wealthy elite minority!

    report
  22. David Sanderson

    logged in via Twitter

    The classifieds collapse has been very heavy. Went looking for the SMH car classifieds on Saturday and couldn't find it for a bit. Eventually did find it - less than a quarter of a tabloid page. Can't pay for much editorial at all with that sort of volume.

    I certainly won't buy the SMH if it becomes rineharted. Doesn't the Australian and the other Murdoch rags purvey enough rightwing rubbish for those who want it?

    report
  23. STEFANO BOSCUTTI

    Writer, Creative Director

    “The story of Fairfax’s decline is one of managerial failure. The company has been run by senior executives and boards with no direct experience running a media company. Instead, leaders at Fairfax have been property developers, management consultants, accountants, and rugby players. Those people did not have the experience or understanding of a people-media business to steer the ship into safe waters.”

    And therein lies the rub. Idiots at the helm, tilting into the storm. Bizarrely Gina Rinehart’s only media experience is wrapped up in her fathers decision to start his own newspaper in Western Australia after becoming frustrated by government decisions.

    Of course the newspaper was a complete and utter financial flop. So surely Gina’s seat on the board will be the final nail in Fairfax’s coffin.

    report
  24. Michael Ekin Smyth

    Investor

    The opportunity to create profitable, nationally-focused, online competition for the mainstream companies still exists. A tight organization with small newsrooms in each capital - innovative online marketing, a digital mentality and staff under 25. That will work.
    This is creative destruction in operation and it is harsh only because it was resisted for so long. The comfortable duopolies in Oz slow adaptation and innovation.
    Fairfax earned its fate - by failing to innovate; sitting on its butt in comfortable newsrooms in Sydney, Melbourne and Canberra. Salaries were too high, benefits too extensive and the staff were both too old and far too in love with their own opinions. They are reaping the natural result.
    Gina will inherit an organization which will continue to shrink.

    report
  25. Rod Palmer

    Doctoral Candidate at Curtin University

    Anyone else remember the 1991 rally featuring Whitlam and Fraser on stage imploring a Darling Harbour crowd to protect Fairfax from a different god awful owner? Have we lost that passion to protect quality independent journalism?

    The only upside If (as almost certain) Gina moves into Broadway and stacks the place with rabid rightwingers and partisan interests is that perhaps the ABC will no longer feel quite so obligated to host the seemingly ceaseless coterie of IPA neoliberal spruikers on every second talks program.

    At least the Conversation has emerged at a timely point.

    report
  26. Peter Franklin

    logged in via Facebook

    Hopefully someone will see there money to be made from those who want good journalism and will fill the void (electronically) if Fairfax loses credibility.

    report
  27. Philip Dowling

    IT teacher

    “The story of Fairfax’s decline is one of managerial failure. The company has been run by senior executives and boards with no direct experience running a media company. Instead, leaders at Fairfax have been property developers, management consultants, accountants, and rugby players. Those people did not have the experience or understanding of a people-media business to steer the ship into safe waters.”
    This is such a contrast to the owner of a small Adelaide-based newspaper, who understood intimately…

    Read more
  28. James Jenkin

    EFL Teacher Trainer

    To raise a more general point about the Conversation (sorry I can't see a general forum for this sort of topic). What is the purpose of rating comments as 'insightful' and 'unconstructive'?

    It seems the responses reflect whether people agree with the opinion, not whether it is well argued. For example, in the posts above, anything not explicitly critical of Rinehart gets negative ratings - yet something comparing Bolt to Goebbels gets positive ratings.

    It's not always a progressive viewpoint that gets positive ratings, incidentally! It depends on the article.

    What if there were two ratings - one whether you agree or not, and one whether it's well argued or not? Any thoughts?

    report
    1. theperfectnose

      logged in via Twitter

      In reply to James Jenkin

      I second this. Either that or have the youtube style upvote/ downvote system where comments with too many down votes are hidden by default and need to be clicked on to be made visible again.

      report
  29. naomi vallins

    teacher

    While it is true print media have declined as a result of online news sources, I, for one, will miss sitting down to a cup of coffee in the morning and a quick squiz of the Age. Nonetheless, I will cancel my subscription as soon as Rinehart joins the Fairfax board.
    Mike Hansen, p'haps you could let other readers know of the bloggers you read for news, please?

    report
  30. The beat-up

    logged in via Twitter

    The question is, can an Australian readership shift their reading habits from the SMH and The Age to equally 'reasonable' sources? We have majority-privatised healthcare, a two-tier education system, a military always at war somewhere else, unreasonable addictions to patriotism and sport, an impoverished indigenous second-class, and high tertiary education fees. Right now, it's looking pretty doubtful. Look across the water. This is just us catching up.

    report
  31. Alice Higgins

    Public Relations Account Manager

    The issue here is not SMH and the Age morphing into tabloid format - only on the quality of the journalism. The UK has used tabloid format for years, and have many very high quality newspapers (yes, and many very awful ones).

    Perhaps the decline of the SMH and the Age is a blessing in disguise? The Australian people are surely well-educated enough to want a more balanced perspective from newspapers. Fairfax used to offer this alternative, but now it seems to be in demise.

    People will always want to know the news, we just have to adapt to the current climate. It is very comforting to see that 350,000 readers log into the Conversation every month. The Evening Standard was bought by Alexander Lebedev (also owner of the Independent) in 2009 and now offers a very high quality free newspaper to London commuters. Could something similar not happen with the material from the Conversation?

    report
  32. John C Smith

    Auditor

    Gina is wasting her money on a dead horse.

    I thought Fairfacts would be bought by our Minaret ABC, to reduce CO2 or by Indian interests.

    Poor Aunt ABC will be crying for loss of her broadsheet, she no longer can tabloid without specifying the tabloid.

    I feel sorry for the workers and journos who will loose their daily bread, but I am happy with the oncoming death of middle class brainwashing institution..

    report
  33. Mark Matthews

    General Manager

    Stupid Gina,

    The Age readers will just go elsewhere. We have been leaving in droves already. Sites like this one, the ABC, crikey, Google news.

    To easy to go elsewhere....

    report
    1. alexander j watt

      logged in via Twitter

      In reply to Mark Matthews

      I'd add the economist and the guardian to the list.

      when everyone is getting news through the iphone and tablet its almost as if the masthead disappears.. but when i'm reading something rubbish its like i can taste the confectionery and the the sawdust. the never ending search for a pure source of information, like finding cool well water in the desert

      report
    2. corinne colbert

      artist/educator/activist

      In reply to Mark Matthews

      THANKYOU ALL FOR INSIGHT IT IS SO VERY TRUE IN THE REAL WORLD CAN YOU KEEP WRITING PLEASE?ALSO I AM HAPPY TO PAY FOR THE SUBSCRIPTION FOR CONVERSATION WILL GIVE THEM THE MONEY I PAY FOR NEWSPAPERS...............GLADLY

      report
  34. corinne colbert

    artist/educator/activist

    thankyou for the article and the warning. basically i hope we all wake up to the way in which mining magnates are so bent on gaining control of opinion.and then boycott the papers.those papers can start again online.isnt that so?
    if not it is going to be so boring to read a paper at all.the australian is so boring now with that saturday magazine about shiny celebrities, wine and recipes.
    and i am tired of headlines.so are all of my friends.we love the ABC.and i love the community papers here on the gold coast 'the sun'.the internet will save us.
    it is however unacceptable to accept gina as opinion maker as she is not a journalist.i also think it is up to all of us to stop this.it is our resources and our papers.

    report
  35. David Leigh

    logged in via Facebook

    It is interesting to read the myriad of views in this thread and soooo many comments. The internet can be the level playing field, very much needed in the media. It allows anybody to have input into just about anything. The Conversation is evidence of that. Online, it is quicker to report news than the TV and certainly the newspapers and think of all those trees left in the ground as carbon sinks. Murdoch is breaking up his empire and separating news from other media and Fairfax is undergoing a rationalisation…

    Read more
  36. Len Puglisi

    Urban environmental writer

    Thanks Andrew - a very full and disturbing assessment. But why no word about what's already happened to the AFR under its recently appointed managing editor?

    report
  37. Tony Grant

    Student

    I backed off Australian print media last century.

    I now find all that I need on-line and take sneak views of "biased offerings" to my continual displeasure.

    Social media/networking seems to be getting much of the "other side" out to many people, lets hope it continues and gathers strength?

    So mid year we are to expect "news speak" from the "fat woman gang"...the world is a bigger place than just Australia and we know what to expect!

    Gillard may have to go early for this reason alone?

    report
  38. Tony Grant

    Student

    Bush Pig and foreigners (Murdoch) to run the rags...there goes the old "rag trade" Reg Varnie (Rag Trade)?

    report
  39. theperfectnose

    logged in via Twitter

    A lot of good points have been made here but the somewhat emotional/ personal response-like tone of the article puts me off. While I recognise that this is meant to be a opinion piece I think a more detached, Scientific (concise and precise rather than descriptive), 'facts only' tone would suit it better.

    report
  40. George Naumovski

    Online Political Activist

    A right wing conservative will give their views, opinions and how it should be. A left wing would do the same and a centre wing as well.

    People are easily influence because they don’t want to think for themselves and want to be told what to think and do; that is why the vast majority are religious!

    No matter who owns Fairfax or any other media company, the owners/business elites will always cry about how unfair life is for them as in having to pay tax and paying their work force.

    report
  41. Doug Hutcheson

    Poet

    Andrew said "scepticism towards climate change will now be shared by all three quality mastheads". I wish that was not true. Sadly, scepticism by the right-wing media only goes one way: blindly ignoring the comprehensive weight of scientific evidence, in favour of the opinions of non-scientists, like Christopher Monckton. Didn't Rinehart bring Monckton out recently, to spread his version of the Gospel According to Mammon? http://www.youtube.com/watch?v=aX2kMAfJggU

    Searching for truth and not blindly…

    Read more
  42. Baz M

    Law graduate & politics/markets analyst

    Andrew, first and foremost. I thank you from the bottom of my heart for this piece and your highly anticipated media coverage as you mention over the next few weeks.
    I am a regular reader of SMH, and have been for about the last two years. Although embarrassingly I may add lately its been the digital version on my IPad, it was always till now the print version which I still actually prefer. One of my biggest fears is this Rhinehart affair. It is a clear example of how the values in the…

    Read more
    1. Dianna Arthur

      Dianna Arthur is a Friend of The Conversation.

      Environmentalist

      In reply to Baz M

      Baz you have beautifully expressed my experience with Australia media.

      "However I still dream that I will wake up one morning and that the heads of Fairfax and majority of share holders will tell Gina (likewise Rupert) to bugger off."

      The above mentioned is my New Year's wish. That we can return to genuinely independent, well-researched, considered analysis. I see potential for any entrepreneur who values truth above ideology - if that is not an oxymoron.

      report
    2. Peter Ormonde

      Peter Ormonde is a Friend of The Conversation.

      Farmer

      In reply to Baz M

      Baz,

      I agree entirely with your gloomy estimation of Fairfax of late - well over quite a while actually.

      But I think we should avoid making the same errors ar successive boards and executives who believe that the "value" of Fairfax lies in its mastheads.

      In reality of course they have just spat their best assets out into the world of early retirement or freelancing. And they are busily making life less comfortable and attractive for the few journalists who remain.

      Any half-smart cashed up entrepreneur would be getting them into some sort of on-line home ASAP.

      Lastly, Happy Xmas Ms A or whatever you use to mark the passage of time ... and all the best for 2013. Thanks for all the sensible chats.

      report