Fairfax to brief investors on digital subscription model
Fairfax executives have in the past stated their preference for a metered model in which readers get free access to a certain number of stories before being asked to pay. Any metered model would probably remain porous to ensure the company retains its large share of the nation's digital news market.
The New York Times, widely seen as an industry model for metered models, had 676,000 paying digital subscribers at the end of March, almost as many as its 731,000 print customers. Readers of the NYT get access to 10 free articles per month, with full access starting at US99¢ ($1.02) for the first four weeks, before rising to $US3.75 per week.
Goldman Sachs analyst Christian Guerra said investors would be expecting an update from the Fairfax management on plans for increasing revenue from its digital platforms, such as theage.com.au and smh.com.au websites, to help counter a drop in print sales and advertising.
Last month, the Herald website and its mobile site had average daily domestic unique browsers of almost 840,000 while The Age attracted about 587,000 unique browsers. By contrast, News mastheads such as The Australian had 203,000 average daily unique browsers, the Herald Sun 345,000 and The Daily Telegraph 243,000, Nielsen Market Intelligence says.
Also of interest will be whether Fairfax has plans for a possible spin-off of its Domain property assets, Mr Guerra said.
Fairfax shares have risen almost 18 per cent this year, closing at 60¢ on Wednesday. In comparison, the broader market is up 4 per cent.
Frequently Asked Questions about this Article…
Fairfax Media is unveiling more details about its digital subscription strategy for The Sydney Morning Herald and The Age at an investor briefing day. The briefing will outline how the company plans to grow revenue from its digital platforms.
Fairfax executives have indicated a preference for a metered paywall model, where readers get free access to a set number of stories before being asked to pay. The article says any metered model would probably remain porous to help Fairfax retain a large share of the digital news market.
The New York Times is widely seen as an industry example of a metered model: it had 676,000 paying digital subscribers at the end of March, allows 10 free articles per month, and offered an introductory price of US$0.99 for the first four weeks before rising to US$3.75 per week. Fairfax is studying similar metered approaches as it plans its own digital subscriptions.
Analyst Christian Guerra of Goldman Sachs said investors are expecting an update on plans to increase revenue from Fairfax’s digital platforms (such as smh.com.au and theage.com.au) to help offset declines in print sales and advertising.
According to Nielsen Market Intelligence cited in the article, the Herald website and its mobile site had about 840,000 average daily domestic unique browsers last month, while The Age attracted about 587,000. By comparison, other mastheads had smaller daily unique audiences: The Australian about 203,000, Herald Sun 345,000 and The Daily Telegraph 243,000.
The article notes that investors will be interested to see whether Fairfax has plans for a possible spin-off of its Domain property assets, a point highlighted by Goldman Sachs analyst Christian Guerra.
Fairfax shares have risen almost 18% this year, closing at 60 cents on Wednesday, while the broader market was up about 4% over the same period, according to the article.
Investors should look for specifics on the metered model (how many free articles, pricing and how porous the paywall will be), projected digital subscriber growth, revenue plans for smh.com.au and theage.com.au, any update on a possible Domain spin-off, and how management expects these moves to offset print and advertising declines.
Call 1300 880 160
Start a chat
Schedule a call
