Newspapers: To be or not to be
FAIRFAX Media should axe its Melbourne and Sydney daily print editions and focus on e-readers and online to boost earnings, a report says.
The Australian 9th August 2010FAIRFAX
Axe Fairfax Media's daily print editions to boost earnings, says Macquarie analyst
An analysis from Macquarie has found dropping print editions of The Sydney Morning Herald and The Age and delivering content via e-readers such as Apple's iPad could boost earnings from the two papers to $55m -- $5m more than the bank’s 2010 forecast.
Some of the figures were revised lower by Macquarie after the initial report, including the amount by which earnings could be boosted. The original estimate was $103m, which was lowered to $55m.
Analyst Alex Pollak also suggests Fairfax could get the ball rolling by spending about $50m to give away 100,000 e-readers to seed the migration of readers away from print.
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