Advertisers raise competition concerns about WAN purchase of The Sunday Times
The Australian Competition and Consumer Commission is seeking feedback on a number of issues raised by the proposed takeover of The Sunday Times and PerthNow by West Australian Newspapers, including concerns from some advertisers about the effect of reduced competition in print newspapers.
A media release today states:
The Australian Competition and Consumer Commission has released a Statement of Issues on the proposed acquisition of The Sunday Times and perthnow.com.au from News Corporation (ASX:NWS) (News) by West Australian Newspapers (WAN), a wholly owned subsidiary of Seven West Media (ASX: SWM) (SWM).
The proposed acquisition would combine the two highest-circulating Western Australian print newspapers and related online news sites. The ACCC is investigating the impact this would have on two distinct groups: readers and advertisers.
“A number of interested parties have expressed concern about the reduction in competition and the impact this would have on quality and diversity of content. A number of advertisers have also raised concern about the loss of competition for advertising opportunities in the print newspapers,” ACCC Chairman Rod Sims said.
“WAN and News appear to be each other’s closest competitors in print and online news in Western Australia. They compete strongly with each other to attract readers and advertisers. The ACCC is seeking to understand whether the competitive tension between WAN and News is a key factor in maintaining quality and diversity of content for readers, or whether the threat of readers shifting to alternatives, particularly alternative online news sites, will competitively constrain WAN after the acquisition,” Mr Sims said.
The ACCC is also seeking to understand whether advertising opportunities on other media platforms, such as radio, television and online, will constrain WAN’s print advertising pricing. In particular, the ACCC is seeking further information about advertisers aiming at an older demographic, as industry participants have suggested that alternative media platforms are not a competitive option for these advertisers.
The ACCC invites further submissions from industry participants in response to the Statement of Issues by 18 August 2016. The ACCC expects to announce its final decision on 15 September 2016.
The Statement of Issues is available on the public register: Seven West Media Limited – proposed acquisition of The Sunday Times publication and website from News Limited.
The Commission is also seeking comment on what might happen if the takeover does not proceed:
The ACCC has not come to a concluded view on the likely future without the proposed acquisition but, in the context of falling demand for print newspapers and the shift to online, is considering the likelihood of:
- the status quo continuing, with SWM and News remaining as independent competitors in Western Australia
- an alternative purchaser acquiring the News assets
- the business being restructured, or
- the closure of any assets, including print assets, as the market dynamics change.
1 Comment
Such redundant argument:
Impact on quality and diversity of content.’?
They have been the same paper in quality and content for the past five years anyway.
‘Loss of competition for advertising opportunities’? If you can’t find an alternative to print to reach people then you’re not doing your job.
Merging the two will delay the inevitable and allow a few people to remain employed so why not let it go?