Stuff sale and NZME paywall

Stuff has an article on it’s own pending sale, and also has a look at NZME’s proposed NZ Herald paywall in Stuff faces possible break-up as NZME readies its wall

Australian media company Nine hopes to have the sale of Stuff Ltd pretty much wrapped up by the end of June.

Nine is expected to put out an “information memorandum” on the business in a few weeks that should give potential buyers and tyre-kickers a clear picture of the business.

Nine’s clear preference is for a clean sale and a quick exit from the New Zealand market.

But a key question is whether Stuff might be worth less as an integrated business than the sum of its parts.

If it is, then Nine could be forced get its hands dirty to extract full value from the divestment, or alternatively it could sell Stuff to a private equity buyer that would then break it up.

Stuff has already sold or closed quite a bit of regional media.

On the NZME paywall:

NZME has reportedly been researching a $3 to $7 weekly fee for access to some “premium” content on its NZ Herald website.

That would be $156 to $364 per year! How many people would be prepared to pay that?

In August, chief executive Michael Boggs forecast NZME might convert 4 to 6 per cent of its online audience – which is shy of 2 million – into paying customers.

He based that on what he said was the benchmark in Australia, where paywalls have been around longer and encompass a wider range of content.

However, the Lenfest Institute for Journalism in the United States estimates the top 10 per cent of paywalled publications only succeed in persuading 1.3 per cent of readers who hit the stop sign on a paywall to then pay up.

Companies may be prepared to pay several hundred dollar subscriptions, but I doubt there would be many individuals who would.

Whoever takes over Stuff will have an obvious interest in the NZME paywall plans. If it flops Stuff will be even more wary of trying similar – in fact if NZME loses readers by paywalling ‘premium’ content then Stuff would have an opportunity to pick them up. But that will depend on what happens in the attempt to sell off Stuff.

 

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23 Comments

  1. Alan Wilkinson

     /  6th February 2019

    Journalists for sale, going cheap probably.

    Reply
    • Kitty Catkin

       /  6th February 2019

      Is that a typo for going cheep ?

      Reply
    • Duker

       /  6th February 2019

      Journalists for sale, going cheap probably’

      better outlook than property flippers, do you have a plan B?

      I see now that Robert Jones and other office landlords are now in the office upgrade business, as taxation rules means they have all that GST to pay and not much to claim back unless they gut/renovate

      Reply
  2. Gezza

     /  6th February 2019

    Might was well all sell out to Woman’s Day and New Idea & have done with it.

    Reply
    • Duker

       /  6th February 2019

      Rubbish comment
      Revenue is $300 mill EBIT is $40 mill

      Thats a massive business by Kiwi standards.
      But I suppose national isnt in power anymore to buy 45% for $950 mill for non voting shares like it did for Chorus.
      And Chorus numbers ?
      Revenue ( down) to $990 mill and Ebit $660 mill, as peaople are happy to pay $1000 +per year for a fibre connection but only tiny sums for the content ($15 netflix)

      Reply
      • Alan Wilkinson

         /  6th February 2019

        Be interesting to see if fibre survives 5G and how the taxpayer’s investment in it looks in hindsight. I was never a fan.

        Reply
        • Duker

           /  6th February 2019

          5G is very short range, will require a lot more cell towers/broadcasting poits

          Reply
      • Blazer

         /  6th February 2019

        talk about corporate welfare.

        Reply
        • Alan Wilkinson

           /  6th February 2019

          Could never understand the rationale other than to break the last mile copper monopoly in a bad way.

          Reply
          • Kitty Catkin

             /  6th February 2019

            I can’t see any improvement.

            Reply
            • Duker

               /  6th February 2019

              Thats because your computer ‘isnt up too’
              Its made a huge reduction in network congestion in peak periods , I used to find the old broadband slowed to a crawl, not any more and I only have the 50Mb/s plan- the actual usage is more like 25-35Mb/s

              Fibre is being tested now to allow 10Gb/s and will be some that will want that

            • Kitty Catkin

               /  6th February 2019

              Mine’s an Acer Netbook, newish.

              It was never very slow, not crawling, anyway. What I find really annoying is that silly animal telling me that Hmmmm….we’re having trouble finding that….Often when someone else comes on nearby, this happens.

            • Duker

               /  6th February 2019

              netbook …that explains it … they are processors from mobile phones in a smaller format.
              Go for a large tablet, I have a 10 in Lenovo as well as my old HP 20 in all in one , which I upgraded with electronic hard drive and extra memory a few years back

            • Kitty Catkin

               /  6th February 2019

              Mine suits me all right at the moment, and it’s too new to discard. Its speed is reasonable most of the time, and it’s light enough to have on my knee so that the dog can snuggle beside me as he loves to do.

              The battery died on my last one (or became very ill) and as these were on special, I put the bit extra and replaced it. The other one’s still there. It goes all right when it’s plugged in.

              Our first computer was one of the $999 Dells from The Warehouse. It would have seemed unreal that in a few years we’d both have a computer and that they’d be so cheap.

      • Gezza

         /  6th February 2019

        Probably should have included a 😉 icon seeing you can’t tell the difference between a tongue-in-cheek comment and a rubbish one.

        I’m just having a wee dig at how women’s-magazine-like so much of both the online Herald and Stuff.co have got.

        Reply
        • Duker

           /  6th February 2019

          Didnt you know they are in the business of selling advertising…silly you

          Reply
          • Alan Wilkinson

             /  6th February 2019

            Actually in the business of selling readers to advertisers.

            Reply
            • phantom snowflake

               /  6th February 2019

              Yet another triumph of the ‘free market’.

            • Alan Wilkinson

               /  6th February 2019

              Very true, snow. Note how every participant gets something of value and participates voluntarily.

            • Duker

               /  6th February 2019

              NZ on Air Funding last year
              “Circuit Breaker, 5 x 45 mins, Fairfax New Zealand for Stuff.co.nz and Māori Television, up to $491,250

          • Gezza

             /  6th February 2019

            Didnt you know they are in the business of selling advertising…silly you

            Absolutely I did. Silly you for assuming I didn’t.

            Reply
  3. David

     /  6th February 2019

    I can see them both going behind paywalls at the same time, colluding on the dates which would ensure the optimum amount of subscribers and watch out for “3rd party” aggregators doing a bundle for both sites.
    The fix is in people.

    Reply
  4. adamsmith1922

     /  6th February 2019

    NZME and premium,they are clearly very confused.

    Reply

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