LETTER TO AFR.
John Roskam appears to suggest that government funding creates an unfair playing field for News Ltd and Fairfax (Aunty Looms Too Large July 6). Readers of the AFR would be wise to look beyond this simple story to the real reasons for Fairfax woes in particular. These have nothing to do with the ABC and everything to do with poor strategy and management in a time of rapid change.
Andrew Jaspan discussed these in his article “Fairfax or Gina-fax? Let’s have the debate before it’s over” (18 June). He highlights that the highly profitable classifieds space was lost to tech startups such as Seek and Realestate.com.au. Further, even when a digital strategy was pursued, Fairfax management insisted on siloing digital and print departments. Exactly the opposite of what leading global papers were doing.
I write this letter because business men and women who constitute the readership of the AFR should be aware that there is a more complicated and interesting case study behind the situation at Fairfax. It’s not an issue of unfair competition from a government funded media channel, the issue has been poor strategy.