Despite the inconsistency of Nine declaring this “the right time for a transition” with no successor in line, the resignation of its chief executive is an opportunity for the Australian TV and newsmedia giant.
Chief finance and strategy officer Matt Stanton has been named as “acting chief executive” following the resignation of Mike Sneesby, and will oversee the recruitment process for his successor.
Nine Entertainment’s 2018 acquisition of Fairfax Media was accompanied by an opportunist decision to shed its printing capacity as well as the string of regional newspapers sold to Antony Catalano and Thorney Investment’s Alex Waislitz. That Australian Community Media has had its own problems has been evidenced by its closure of ten newspapers in recent weeks.
Importantly however, in the minds of those who care about newsmedia, has been the reputational loss of the once-mighty Fairfax mastheads, and most recently an unnecessary industrial dispute.
There’s no doubt print carries greater gravitas than digital, of which the message can pass in a heartbeat. This is something Rupert Murdoch knows well, and is the reason he has carried The Australian through its 60 years, many of them financially unattractive.
There was a time when both the Sydney Morning Herald, and in Melbourne the Syme family’s The Age were regarded as among the ‘great’ newspapers of the world. With the constant focus on print’s ‘use-by’ date initiated by Greg Hywood at Fairfax and maintained by Nine through its production deal with News Corp, it’s never again likely to enjoy the independence of its own presses, even if it wanted to. The upgraded regional print capacity developed for the Fairfax metros by Bob Lockley in North Richmond (NSW) and Ballarat (Victoria) has gone, the former ironically to print News’ The Advertiser in Adelaide.
To a large extent, Nine now knows exactly how little it can spend to print the Herald and the Age – just as it did the Australian Financial Review in WA – and seems intent to have the corporate bottomline drive that allocation; a sharp contrast to the Murdoch investment in its national daily, supported by Lachlan Murdoch and likely one of the reasons behind the fight to modify their family trust.
Last month Nine cut 85 staff from its publishing business, hardly an act of faith in its future.
Ahead of the 2018 deal – made possible by media law reform the previous year – there had been speculation about a union between the publishers of the Sydney Morning Herald, The Age and the West Australian, regarded as not only possible, but more realistic. Fairfax’s longstanding talks with Nine had always been frustrated by the broadcaster’s wariness – and perhaps lack of understanding – of its newspaper business.
It’s academic whether Seven would have made a better partner; we think it’s possible, given its ongoing commitment to newsmedia and print. Interesting too, that the WA company maintains its interest in the east coast, most recently with the launch of digital ‘newspaper’ The Nightly.
So where are we? Mike Sneesby will step down from his role at the end of the month, having carried the Olympic torch, and seen the completion of the Olympics and the Paralympics – and importantly for Nine perhaps, launched The Block into 2024 – with Nine chair Catherine West (who is she, you ask) pointing to his achievements. According to a statement, they include “progressing strategic and cultural transformations”.
Answering our own question, West (referred to in a report in The Australian as “Mr West”) is an experienced company director who has been on the broadcaster’s board since 2016, and who has raised eyebrows through a disputed incident suggestive of possible editorial interference.
Stanton’s job will be to line up candidates to succeed Sneesby; choosing a successor is that of West and the board, as usual having regard to the wishes of shareholders. But first it would be good if they were to decide which way they are pointing; how they see the role not only of their blockbuster TV shows, but also of their cluster of once-venerated mastheads, and what they plan for their future.
It will be the job of the new chief executive to execute those intentions, and that may perhaps include a more positive path.
An alternative to their present sad, slow death – and given the changed circumstances and opportunities – would be to put the papers on the block (and we’re not suggesting a call to Scott Cam) or to create a trust for them similar to that under which The Guardian and some other mastheads now flourish.
Peter Coleman
Pictured: London-born lawyer Catherine West, who is also chair of Australia’s National Institute of Dramatic Art (photo: Australian Financial Review)