subject: Are Australian Media And Retail Both Suffering The Same Fate? [print this page] The much publicized increase in online spending and its effects on traditional retail have been well documented over the past few years with store closures, businesses closures and poor retail figures all being linked to the increase in online spending by consumers. Recently we have seen media groups such as News Limited, Fairfax and even Channel Nine slashing jobs and in Nines case potentially shut down. And the question must be asked is Media like traditional retailers inability to embrace online the cause of both downfalls?
Channel Nine narrowly avoided administrators coming in last week as they reached a deal on their $3.3billion worth of debt repayments. Kerry would be rolling in his grave if he knew of the trouble his beloved Channel Nine are in; but they are not alone in television media trouble Channel 10 announcing the need to shed 116 jobs and dismantle a $25million news platform. Traditional print media groups Fairfax and News Limited have reduced staff numbers as well this year with Fairfax slashing 1900 jobs and moving to a tabloid style print layout and News Limited staff cuts unknown but believed to not be as high as those at Fairfax as they try to manage spiraling costs across their TV and print networks.
The way we read news, watch television shows has altered drastically in the past few years and the traditional engagement model is being reworked. Advertisers no longer get the bang for buck from television or print ads, online marketing also delivers reporting and analysis that traditional guys could only dream of. So is it any wonder why these job cuts have come? Channel 10 particularly who target the younger demographics might be more nervous than others as younger generations have a better adoption of online media often choosing to streamline TV shows and movies from the internet.
The retailers who have struggled to embrace online have also seen the downturn in sales; and as younger generations continue to embrace the internet we will likely see more retail head that way as well. And this is the same for media that has not been able to embrace the online space.
Many of the News Limited newspapers have moved to a pay to view model for the online version of the print thus far Fairfax have declined to go down that path however may do soon. However this move may not be the savior the media groups hope it is as consumers dont appear ready to or willing to pay for news an item that previously was free. Newspapers in some form will continue to exist but the days of walking out to collect the morning newspaper may be limited weekends being the exception.
The internet has given the consumer access to not only more retail options but also more media options, including increased views and opinion pieces how many blogs or article collection sites do you attend to get information from now previously it might have just been an official media site. As retail and media go through the renaissance how will these industries look in 5 years will stores have integrated technology options? Will media sites engage more or charge more? The only thing constant with business any business is change; with media and retail we the consumers are very much part of that change process right now how we want to shop and be entertained, get the news etc - will very much be the way it ends up; demand and supply principles will apply.
