Australia's media industry was shocked on Friday by the ousting of David Kirk, the chief executive of Fairfax Media. The board ejected Kirk the day after the editor of its Sydney Morning Herald resigned, and the two departures confirmed the depth of the company's problems.
Kirk's deputy, Brian McCarthy, looks set to get the top job. It is assumed that the recent moves are the result of interventions by John B Fairfax and his son Nicholas. They are eager to rescue the company that bears their name - but the financial outlook looks gloomy.
According to a statement to shareholders last month by Fairfax's chairman Ron Walker they can expect "tough trading conditions for some time". That's somewhat of an understatement. As in the US and Britain, Australia is witnessing an unprecedented upheaval in its media industry.
Ken Steinke, the head of West Australian Newspapers, also lost his job last week. And Tony O'Reilly's Irish-based Independent News & Media appears to be having difficulties in finding a buyer for its 39.1% stake in the Australian provincial newspaper group, APN.
The outlook for the industry is bleak, with expectations of a prolonged advertising recession in which metropolitan newspapers, are expected to be the hardest hit. Merrill Lynch analysts forecast an 11.5% ad sales slump next year.
(Sources: Sydney Morning Herald/paidContent/Crikey/The Australian)
