NZME - New Zealand Media & Entertainment

[winner69]

Interesting thought James

You say - One thing I firmly believe is that journalism in NZ will survive.

In respect to NZME some might call it ‘journalism’ ....many would disagree

[Beagle]

They need to urgently monetize the N.Z. Herald website. They keep giving away news for free, (I'll take the moral high ground for once and leave the standard of journalism, whatever view you have of it, out of this debate)

[James108]

They say they are going for a 'freemium' model, which sounds like you have to pay for proper journalism but all the trashy/easy stuff is still free. I think this is the right move, especially if stuff follow. Complete paywall would alienate most of NZ and be bad for NZME (as well as our democracy imo).

I agree their journalism is a mixed bag but overall net positive NZ.

[winner69]

They need to urgently monetize the N.Z. Herald website. They keep giving away news for free, (I'll take the moral high ground for once and leave the standard of journalism, whatever view you have of it, out of this debate)

Mightn’t get many prepared to pay ......because of the second part of your post

[Patient Panda]

So what is the value of the declining part of the business? Questions we have to ask, is NZherald the dominant masthead in NZ? will print dissapear? how long until print becomes uneconomical? How long after it becomes uneconomical will shareholders be paying for it before it gets canned? What will happen to journalism and where will people get their news if print dies?



So in what form will this happen? One possible outcome, smaller papers fall by the wayside and views/subscribers get aggregated to the larger papers (i.e. NZherald, stuff). When I had a girlfriend in the Waikato I noticed the Waikato Times is absolutely trash, I can only imagine the smaller papers are worse.

Yes NZ Herald is the dominant masthead in NZ unless you consider Stuff a masthead then NZHerald is 2nd. ODT is NZ’s only independant and has a very loyal subscriber base who are very willing to pay, they also spend by far the most on journalists so could be interesting to compare the different models going forward.

Yes Print will disappear for the majority of papers. The smaller ones going much faster.

from what I have seen it does not take long for an uneconomic cog in the wheel to be discarded e.g papers sold or shut down. Often times a non performing print asset is sold to the editor who believes they can turn it around or squeeze more juice out.

You are right about the aggregation to larger papers in the short to mid term

[arc]

Looks like this one may have reached bottom / stability .?
The machine tells me there has been an increase in both numbers and sizes of parcels crossing, apparently yesterday 5,000,000 went through as a placement.

[steveb]

I do remember picking up some shares at .50c after the merger fell through,at the time NZME were making money,perhaps now they might be able to approach the commerce commision again,and try for a merger with Stuff again,circumstances have certainly changed.

But as to reaching bottom that .50cent mark still looms large.

Disc no longer holding

[BlackPeter]

Looks like this one may have reached bottom / stability .?
The machine tells me there has been an increase in both numbers and sizes of parcels crossing, apparently yesterday 5,000,000 went through as a placement.

You must be a brave man defining a bottom for a company with consistently dropping revenue (well, that's what the analyst consensus says).

I guess - sure, their price should resemble the DCF value of a shrinking income stream and some of their assets (staff, archives) will have some value if the current revenue streams totally dries up as well ... but how much this is I would not know.

Possibly a worthwhile trade (if you get the timing right), but not sure I'd see them at this stage as a long term hold.

[Beagle]

Over 11m shares just changed hands at 65.3 cents per share. Big end of town reckons this is the right price at present. I'm not tempted to get back on this horse at that price. Hasn't proved to be a happy hunting ground for this Beagle so I'll leave it to others to try and make a buck.

[percy]

Impossible for me to work a price I would buy in [again], with the increasing eps downward spiral trajectory gaining momentum.