Newspapers are “worse-off” run by PLCs
How you interpret “worse-off” is key here but the insights and debate were lively at yesterday’s MediaTel Group Future of National Newspapers event.
From the floor, Andy Mullins, Independent and Standard MD, asked: “Are newspapers more effectively run when sponsored by a wealthy proprietor or a media organisation that has a top executive who is passionate about newspapers, ready to invest and not totally accountable to shareholders and the city?” He cited the example of Trinity Mirror under Sly Bailey’s tenure and whether the panel thought criticism of her was unfair.
Raymond Snoddy, BBC presenter and Newsline columnist, was the first to reply. “Sly was overpaid, especially when you look at the performance she oversaw. She never showed any real passion or intent to grow news and continually cuts costs to hit margin and profit targets.”
Snoddy went on to say that Bailey had the difficulty of managing Trinity’s regional business and that the regional press may never recover from the structural change it has encountered. The answer must be to invest in multi-platform journalism, he said. However, Bailey would not have had the funds to invest in this approach with quarterly figures published and inspected by city analysts.
“Trinity are in a tough position… They needed a coherent plan and I am not sure if it got presented,” Guy Zitter, MD of Mail Newspapers, said diplomatically, before questioning whether there was ever a real plan for growth?
Zitter went on to say that there is enormous power in local newspaper brands. In Hull, the Hull Daily Mail is the default Mail in residents’ consciousness. Regional newspaper publishers need to harness that power and enthusiasm, according to the Mail boss.
Dominic Carter, commercial director at News International, who previously worked for Trinity Mirror Group (TMG) under Bailey, said: “Sly was in a difficult position. The business is hamstrung by being a PLC and at the mercy of recommendations from city analysts.” Carter continued that “TMG is a difficult business” – it is very difficult to harness any potential between the regional and the national business for greater benefit.
“TMG had the opportunity to do something when the News of the World closed,” he added. “They should have invested in the Sunday Mirror.” Carter said that working for a proprietor who has a passion for newspapers and ready to invest is a real advantage. “You are able to think longer term, experiment and exploit potential market opportunities.”
The current advertising market is very tough across the board – advertising companies are holding back investment and, as a result, the advertising market is very short-term. This has a knock-on effect, which means newspapers are not able to invest either.
In conclusion, Snoddy said that it is easier to run non-PLC owned newspapers – newspapers with wealthy sole proprietors, part of larger media organisations with people who are passionate about growing newspapers, or newspapers supported by other media operations or charitable trusts.