Media24 has confirmed it is closing the print editions of Beeld, Rapport, City Press, Daily Sun and Soccer Laduma, as well as the digital (PDF) editions of Volksblad and Die Burger Oos-Kaap, and the digital hub SNL24.
It has also accepted an offer to buy its community newspaper portfolio and media logistics operations. Novus holdings will buy On the Dot, the media logistics business, and Media24’s community newspaper portfolio -subject to regulatory approvals.
Die Burger and Son in the Western Cape remain unaffected by these changes. While being “marginally profitable”, they operate within a separate infrastructure and are viable that remain viable due to a more concentrated local footprint, Media24 said.
Complying with reader preferences
“In South Africa, like elsewhere in the world, consumer preferences have changed. People now read more news than ever, but most prefer to do so on their cellphones or laptops and publishers have to comply with their preferences,” said Ishmet Davidson, CEO of Media24, in a press release.
“Consequently, print media globally has been suffering structural declines in circulation and advertising for decades. Combined with rising fixed distribution costs, this has had a devastating impact on print operations.”
Davidson said Media24’s titles in the northern region “have been on life support for a while”. Combined losses were projected to mount to R200 million over the next three years.
“After years of cut-backs, we’ve reached the end of cost reductions to try save these print operations. We’ve simply run out of options,” Davidson added.
Viable brands
Restructuring the business would allow the remaining viable brands to move fully to digital and strengthen its two main digital news brands, News24 and Netwerk24, serving audiences and society across multiple market segments, he said. As digital brands, Rapport and City Press will reside at Netwerk24 and News24 respectively.
“There is no doubt whatsoever that our future is digital. But our digital news services no longer face competition from only other local publishers. Our main competitors now are Facebook, Google, Instagram, and TikTok, all of which are well funded and based offshore,” said Davidson
Beeld, Volksblad and Die Burger Oos readers and subscribers will be able to continue accessing their news on Netwerk24, together with the nearly 100 000 subscribers who enjoy the platform’s ‘All in One Place’ multi-content offering.
“Our main objective is building and cementing a sustainable model for digital news journalism. Daily Sun (part of SNL24) represents an important segment of the middle market, that we will continue to serve with the relaunch of the brand as a standalone and free e-news site,” he said.
Job losses
Davidson said the consultation process was expected to be completed over the next three months, with 30 September earmarked as the last day of publication for the affected newspapers.
“We anticipate that the proposed restructure could result in at least 400 job losses, with 400 more positions transferring to Novus Holdings with the sale and some roles possibly needed beyond 30 September,” he said. “We also intend reducing our corporate and support services and operational costs in line with the changes made in our business.”
And Davidson added, “We are fully committed to managing this highly sensitive consultation with compassion while following the processes prescribed by law and intend to keep job losses – particularly amongst our journalists – to a minimum. Unfortunately, we cannot share any further details until the process has been concluded.”
Said Prof Rachel Jafta, chairperson of the Media24 board: “As the home of trusted and independent journalism, Media24 plays a crucial role in our society – especially in giving a voice to millions of our fellow citizens. And we remain as dedicated as ever to this moral obligation.”
