Business of Media
Anthony Albanese’s crusade to ‘change’ the media
Much has been made of Anthony Albanese’s claims since his election win that he wants to “change the way politics operates in this country”, reports News Corp’s Nick Tabakoff.
But it’s not just politics that the new PM wants to change – he wants to change the media as well. Diary hears that Albanese has told confidantes that he was “appalled” by the behaviour of a press pack that became increasingly vocal during the campaign to try to catch him out.
We’re also told that, emboldened by his win, he’s now on a one-man crusade to improve the “civility” of discourse in press conferences under his leadership. And if that means journalists who yell or interrupt him are actively demoted down the pecking order of those allowed to ask him questions, so be it.
Almost $8b in value wiped from ASX listed media stocks in 2022
Nearly $8 billion has been wiped from the market value of Australia’s largest media companies since the beginning of the year as rising interest rates and fears of a recession spook investors, reports SMH’s Zoe Samios.
Companies such as Nine Entertainment Co, Seven West Media and Southern Cross Austereo have benefitted from a buoyant advertising market for the last 18 months, even during the COVID-19 pandemic. But media analysts are warning the honeymoon period could be over as runaway inflation fuels concerns of sharply higher interest rates.
Investment bank Macquarie downgraded its view on the sector to “underweight” last week over concerns Australia’s media companies would not be able to weather the volatile market conditions or a potential recession. That is despite several companies such as Nine (the owner of this masthead) investing in subscription products which are considered are less vulnerable to swings in the economy than advertising.
Top Triple M, 2Day FM investor sounds warning over streaming
Southern Cross Austereo’s largest shareholder has said it may not make its money back from a long-term investment in the company if the radio sector continues to lose listeners to subscription-music platforms like Spotify, reports SMH’s Zoe Samios and Colin Kruger.
Allan Gray managing director Simon Mawhinney said Southern Cross shares currently look “very cheap”, but there was still a question mark over whether the company could continue to generate earnings when it competed with online music platforms. Allan Gray owns more than 19 per cent of Southern Cross, which owns the 2DayFM, Fox FM and Triple M radio networks.
“Southern Cross trades at a very low multiple of earnings,” Mawhinney said. “We think, sustainably, the company should make around $95 million of pre-tax earnings. And relative to that, it’s very cheaply priced.
“But, of course, the elephant in Southern Cross’s room is, is Spotify going to kill it? And are people going to listen to the radio in five-10 years’ time? I guess if it’s 10 years’ time we’re fine and we’ll make our investment back, if it’s five years’ time it’s going to be touch and go.”
Twitter Australia posts $2 million loss, fails to declare advertising revenue
Twitter Australia paid less than $150,000 in tax in 2021 as a climb in sales and marketing expenses drove the company to a $2 million loss, reports Zoe Samios.
The social media platform, which is in the middle of a takeover by US billionaire Elon Musk, grew its revenue by 11 per cent to $14.8 million last year, but a rise in costs led to a loss that reduced the size of its tax bill. It is the latest US tech giant to disclose its earnings to the Australian Securities and Investments Commission, giving insight into how much money the sector makes locally.
The company paid income tax of $149,812, compared to $1.3 million the year prior. Companies pay taxes on profits, not revenue. Tech companies such as Google and Meta have been criticised for funnelling money generated in Australia to offshore accounts. Twitter does not disclose in its report how much money it makes from advertising on its platform locally. It says it makes its money in Australia through providing marketing, business planning and research services to parent organisations.
The social media platform’s contribution to the Australian market appears to be considerably smaller than other international tech giants. Google’s gross revenue in Australia grew 38 per cent to $7.2 billion in 2021, while Meta made $1.1 billion in revenue during the same period (it funnelled most of this money offshore). However, these figures include money from advertising, which is not evident in Twitter’s local financial report. That’s despite Twitter making the bulk of its money globally – 85 per cent – from advertising.
News Brands
War hero Ben Roberts-Smith has been wounded, whatever the result
After 99 days of hearings and $30m tipped into the pockets of lawyers, the de facto war crimes trial of Ben Roberts-Smith has come to a close, reports News Corp’s Stephen Rice.
It was a battle of his own choosing but the war hero has come out of it badly wounded, with a verdict still months away.
Defamation cases are unruly beasts that have a habit of heading off in directions no one predicted. Ask Christian Porter and Craig McLachlan.
This one charged out of the gate head-first into a series of killings in Afghanistan, trampling over the testimony of a dozen SAS witnesses, then swerved back home to carve a path of destruction through the Victoria Cross recipients’ marriage and his extramarital affair, before pulling up in his own backyard to dig up a pink children’s lunch box and its hoard of secrets.
And that was all before the 43-year-old former SAS soldier called his own witnesses.
Agencies
How staff are holding ad agencies to account on climate change
Advertising agencies are facing pressure from lobby groups and their own staff to do more on climate change, and that includes the clients they take on, with WPP AUNZ focusing on how it can help companies of all kinds make more sustainable choices, reports AFR’s Miranda Ward.
Rose Herceg, president of WPP AUNZ, says employees have been asking her what the advertising holding group is doing to save the planet.
“We’re a business full of young, enthusiastic people and the questions I get asked are really specific, ‘what are we doing Rose, what’s the WPP contribution to saving the planet?’ They’re the words I get, what is our contribution to saving the planet,” she said.
“The targets that we set need to be measured, they need to be verified. They need to be hard.”
Does advertising have a socio-economic blind spot?
Advertising is getting better at representation, or at least we’re getting better at talking about it, reports News Corp’s Dom Hickey.
But while we’re patting ourselves on the back for ticking the box, we would do well to remember one of our biggest audiences.
They’re the fastest-growing audience in Australia that isn’t defined by colour or preference but inclusive of both … and no they’re not Millennials, they’re much, much bigger than that.
That audience is Australia’s working poor.
Radio
Kyle Sandilands and Tegan Kynaston throw a lavish baby shower
The arrival of baby Sandilands is imminent and to celebrate the countdown coming to an end, dad-to-be Kyle Sandilands and his pregnant fiancee Tegan Kynaston threw a baby shower at their lavish Woollahra mansion on Saturday, reports News Corp’s Briana Domjen.
And just like their gender reveal, which was held on a superyacht and resulted in two jets releasing blue smoke in the air, in true “King Kyle” style, Saturday’s event was a grandiose affair.
Among those who attended the couple’s palatial home was the baby’s godmother and Sandilands’ KIIS FM co-host Jackie ‘O’ Henderson and her daughter Kitty, newly engaged couple John Ibrahim and Sarah Budge, Sandilands’ agent Bruno Bouchet, and jewellery designer Zena K’Dor.
Television
Jackie O quits The Masked Singer
A third member of The Masked Singer guessing panel has quit the show after three years, reports TV Tonight.
Radio host Jackie O posted on Instagram, “It’s been an incredibly tough decision but I’ve decided to step away this year. Filming always coincides with school holidays and after 3 years of missing out I’ve decided to spend my mid year radio break holidaying with my daughter whilst she’s still happy to hang out with her mum. I look forward to watching the show from the couch.”
Her departure follows news Urzila Carlson and Dannii Minogue are not returning, leaving Dave Hughes as the sole remaining panelist.