Media24 announced major restructuring: Soccer title another casualty
Leading media group Media24 has confirmed reports about the closure of major print titles due to declines in advertising and circulation.
Media24 has announced that a major restructuring at the company could put hundreds of jobs at risk.
Last week Moneyweb published an exclusive report regarding Media24 looking to close four of its mainstream print publications – namely Rapport, City Press, Beeld and Daily Sun.
Moneyweb wrote that four sources at Media24 had independently confirmed that a decision had been taken to close the print versions of these iconic brands.
On Tuesday, Media24 confirmed the rumours in a lengthy statement, adding that a fifth print title – Soccer Laduma – could be another casualty as the company considers cutting off the dead wood.
The statement goes on to say that Rapport, City Press, and Daily Sun will become digital-only brands.
The restructuring plans will also see media logistics company On The Dot and the community newspaper portfolio sold to Novus Holdings.
“Print media globally has been suffering structural declines in circulation and advertising for decades,” said Media24 CEO Ishmet Davidson.
“Combined with rising fixed distribution costs, this has had a devastating impact on print operations.”
MEDIA24 PRINT TITLES HAVE BEEN ON ‘LIFE SUPPORT’
As many as 800 jobs would be affected in the intervention – with at least 400 job losses, and 400 more positions transferring to Novus Holdings.
Other announcements made by Davidson at a town hall meeting with staff on Tuesday were that the digital editions of Volksblad and Die Burger Oos-Kaap would be culled, while the digital hub SNL24 would also be shut down.
Davidson noted that Media24 titles in the north of the country had been on “life support for a while”.
“Combined losses are projected to amount to R200 million over the next three years,” he added.
“After years of cut-backs, we’ve reached the end of cost reductions to try to save these print operations. We’ve simply run out of options.”
Davidson said print titles Die Burger and Son in the Western Cape would not be affected as both are “marginally profitable”, while the former holds great historical value.
30 September has been earmarked as the last day of publication for the newspapers.
‘BLATANT DISREGARD OF AFRIKAANS’
Meanwhile, AfriForum confirmed its stance on the rumours last week.
The civil rights group said that Media24 is abandoning its duty towards its Afrikaans readers if it discontinues the print versions of Rapport and Beeld.
In its statement, AfriForum reminded Media24 that it owes its origins to the funding and sacrifices made by the Afrikaans community.
The group added that by scrapping these print titles, Media24 would be turning its back on the community that helped to build the institution over more than a century.