Talks between Fairfax Media and News Limited about a joint printing venture as a way to cut costs have ceased, with both companies unable to agree on terms.
According to a report in The Australian today, the talks, which have been ongoing for more than a year now, have terminated.
It is understood a joint printing venture, which would share facilities in Sydney and Melbourne, could save as much as $70 million per year.
The announcement of the "Fairfax of the Future" plan, which followed recent half yearly financial results, is a sign the publishing company will continue trying to save costs. AdNews understands Fairfax will continue its plan to cut back print runs as it boosts its online audience and offering.
'Fairfax of the Future' is a three year plan to cut costs by $170 million, by reducing print and increasing digital distribution.
In a statement to the ASX earlier this month Hywood said: “We will be changing that mix as well as reducing overall costs, through a variety of measures, including reducing print and increasing digital distribution; sharing content across platforms; centralising sales, systems and services; focusing on audience versus circulation; reducing duplication; partnering and outsourcing; increasing efficiency and flexibility; and building capability."
Discussions about a joint printing venture have been in place for some time. In August last year Fairfax played down comments it was pushing for the proposed joint printing venture because of its own dismal showing in the share
market.
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