Company Updates

PANPA - Newsroom revolution: Interview with Bruce Davidson, CEO of AAP

5 March, 2010

In an era of spending constraints, the new boss of Australian Associated Press believes newspapers will soon be spending more on his company’s journalism.

Editors will dedicate more of their budget to specialist journalists who analyse and comment and will rely on agencies to provide the straight news reporting, predicts Bruce Davidson, who took over as the chief executive of Australia’s largest news agency earlier this month.

By providing the “nuts and bolts” of the news, AAP will free editors to focus on distinctive content that readers value.

Editors might decide they won’t use their own journalists to cover “every court story, or the road toll, or those sorts of things which everyone wants to know about, everyone wants to hear about” but are easily covered by a myriad of news sources.

Instead editors will ask, “What can we do to distinguish ourselves from everyone else”, says Mr Davidson.

“AAP will become more important, more relevant, as everyone struggles with where they’re going to be in the next 10 to 15 years.”

Mr Davidson says newspapers are unlikely to look the same in a decade as they try to find the editorial balance to sustain print and digital models.

“As revenue shifts to the website, they (publishers) must come up with the compelling content for those platforms. AAP has a fantastic role to provide the base of the news every day for all publishers,” he continues.

Mr Davidson’s vision for the future of the newsroom will be sobering for many journalists, but he is not alone in his view.

The need to hire specialist journalists and editors to create content that the reader values is a priority for the chairman and chief executive of News Ltd, John Hartigan.

He told The Bulletin last October: “Commercially, we are going to need to focus on journalism that makes a difference.

“For print we are going to have to hire more specialists – individuals with great knowledge of specific subjects who have the ability to write and communicate in all forms – a style of journalism that really gives context, and the truth.”

Such a mission for exclusivity and quality will take its toll on editorial budgets even in robust economic times.

Mr Davidson believes the option to reduce costs dedicated to straight news stories to pay for higher value journalism will benefit AAP.

His optimism is tempered by the current challenge that the economic downturn has given the agency, and the difficulty in recovering revenues to previous levels.

The company has created diversity in its media portfolio so that it does not have to rely on the news agency alone for its profit.

The agency also runs a media services business, Medianet.

“The challenge is that as one revenue stream slows down and then goes into another area, there are sometimes short-term difficulties in keeping something alive, because all of a sudden you’re not making any money out of it any more.

“We need to be ready to meet those shifts so we maintain the health of the agency in terms of the ability to pay for all our business units and make it all work.

“AAP is first and foremost a news agency, which has a very long standing tradition of quality journalism and fast and accurate supply of editorial, of text and image and now video on a daily and hourly basis.

Mr Davidson presents an optimistic vision for print media, mentioning several times that he believes the “death of newspapers” is an exaggeration.

“Sometimes, we’re our own worst enemies,” he continues.

“There’s been a lot of woe-is-me about newspapers recently, and it’s probably time we got off that treadmill.

We should be talking about the health of newspapers.

“I don’t think newspapers will die now that the internet has come along, but they’ll be different. They may not sell as many copies, but they still should be healthy in whatever sphere they end up being in.”

Although he’s only been in the job for a few weeks, taking over from Clive Marshall who left for the top job at the Press Association in London, Mr Davidson brings with him the experience of running Pagemasters – the most profitable part of AAP.

“I’ve got some advantages in that I was managing director of Pagemasters, so I have a fair bit of knowledge of the inner workings of AAP,” he says.

“That’s made the transition a bit easier than if you’d come directly in from outside.”

Mr Davidson started Pagemasters with Martin Thomas in 1991, after both finished working for the Herald & Weekly Times, the Melbourne-based newspaper company owned by News Corporation.

After 15 years of gradual growth, Mr Davidson says the AAP acquisition in 2002 gave Pagemasters the opportunity to extend further into editorial work, which led to the editorial outsourcing for sub-editing for APN New Zealand, Fairfax Media in Australia, and the Daily Telegraph in London.

Pagemasters’ future lies in markets outside of Australia. “We’re continually talking to other publishers, not just [in Australia] but also in the UK and Asia, about trying to develop more editorial services,” he says.

“We’re becoming known in the industry as someone to approach, and talk to and see what we can offer.”

Overseas, other companies offering editorial services have begun outsourcing to India in an effort to lower costs.

While he doesn’t rule out going down a similar path, Mr Davidson says it is unlikely that will happen in the medium term, believing that sub-editing and listings require culture-specific knowledge to be done well.

“I’d rather develop technology here to enable us to be more efficient,” he says.

“The interesting model that we’ve got, as opposed to perhaps the Indian companies that are working in America and elsewhere, is that we’re not about a wage arbitrage.

“We’re more about efficiency, productivity, centralising and using the economies of scale and having 10, 12, 15, 29, 30 or 40 people in one room that can be more flexible, can iron out the deadline fluctuations throughout the day.”

“You’ve got these peaks and troughs in any newspaper cycle, and if you’ve got a group of people working across several titles, or across several parts of titles, you can make that more efficient.”

As far as the quality of sub-editing goes, Mr Davidson challenges anyone to distinguish the work of Pagemasters from in-house subbing.

“Pick up the Sydney Morning Herald and tell me who subbed what,” he says as a challenge.

“I’d be very interested if you can tell me which bits Pagemasters have subbed, and which bits the internal editors subbed.”

Mr Davidson says he is privileged to have become the chief executive, and he is proud of the agency’s history, which enters its 75th year.

“It’s a lot different than it was 75 years ago, and it’ll be a lot different in another 75 years,” he says philosophically.

By: Nick Evershed

Pagemasters’ editorial production services launched in North America

13 August, 2009

Australian editorial production house Pagemasters has announced a deal that will lead to the services it pioneered in Australasia being offered to newspapers in North America.

Under an alliance with The Canadian Press, Pagemasters North America will provide newspapers in Canada and the US with a complete range of editorial services, from design to sub-editing and headline writing.

The launch of Pagemasters North America by The Canadian Press follows Pagemasters’ success in providing editorial production services to newspapers in Australia, New Zealand and the United Kingdom, including sub-editing for the Sydney Morning Herald, The Age, The New Zealand Herald and the UK’s Daily Telegraph and Sunday Telegraph.

Under the agreement with The Canadian Press, Pagemasters will provide consulting and advisory services and earn revenue based on the success of Pagemasters North America.

Pagemasters currently produces more than 10,000 editorial pages per month in four production centres in Australia and New Zealand and employs more than 100 sub-editors. Pagemasters is a wholly-owned subsidiary of Australian Associated Press (AAP).

AAP chief executive Clive Marshall said: “Pagemasters has experienced extraordinary growth over the past few years as more newspapers outsourced their editorial production. The launch of Pagemasters North America will enable us to capitalise on the high level of interest that we have received in Pagemasters’ services from newspapers in both the US and Canada – the largest English language newspaper market in the world.”

Pagemasters managing director Bruce Davidson said: “The launch of Pagemasters North America is a major development and I believe one which has the potential to lead to significant changes in the editorial production model for US and Canadian newspapers.

“We will be heavily involved with The Canadian Press in setting up editorial production centres in North America, working closely with newspaper publishers as they grapple with the radical changes sweeping the industry.”

Eric Morrison, president of The Canadian Press, said: “We wanted to be a part of the solution to the industry’s current difficulties so it was a natural choice to work with a world leader like Pagemasters to give Canadian and US newspapers the benefit of their expertise in significantly reducing editorial production costs.

“The key is the savings through greater productivity and efficiencies are not achieved by sacrificing the quality of the pages.”

The Pagemasters model being adopted in North America guarantees quality in two main ways:

• Pages will be developed in close consultation with clients, allowing pages to be highly customised while publishers retain complete editorial control of everything from story selection to placement and treatment. Pages can be created live within the client’s editorial system using advanced technology that enables clients to monitor quality throughout the process, raising the standards of accountability even higher.
• Features, news pages and common pages will be edited by North American staff on North American deadlines, adhering to local language and style guidelines and ensuring proper use of sports, political and other terms specific to Canadian and American culture.

Australian Enquiries: Kate Priestley Phone: +61 (2) 9322 8892 Email: kpriestley@aap.com.au

Canadian Enquiries: Sharon Hockin Phone: +1 416 507 2137 Email: sharon.hockin@thecanadianpress.com

Australian Associated Press CEO to Step Down in New Year

12 November, 2009

Australian Associated Press announced today that Chief Executive Officer Clive Marshall will leave the company at the end of January 2010 following his appointment as Chief Executive Officer of the Press Association Group in London.

Michael Gill, the Chairman of AAP, said Clive Marshall had transformed the business into a dynamic, customer-focused and diversified media group with a growing reputation worldwide.

“Clive fostered the essential news focus of our agency and managed the business smoothly into some well-suited diversification,” Mr Gill said.

“While Clive will be missed, his efforts and management have built in AAP a team of executives that we are confident will provide strong leadership in the years ahead.

“We certainly wish Clive well in his new – or perhaps renewed – challenge,” Mr Gill said.

Clive Marshall said: “It has been my privilege to head up AAP for the past nine years.

During that time, the company has gone through an extraordinary period of change. We have significantly strengthened and developed our news and information services whilst broadening and diversifying our revenues through a number of stand-alone commercial businesses including Pagemasters, Medianet and Newscentre.

“It is testimony to the skill, commitment and dedication of our employees that Australian Associated Press is now recognised by its peers as one of the world’s leading news agencies.

“I am particularly proud of the success of our page production business Pagemasters. In the past seven years Pagemasters has grown from a company employing 30 people providing TV listings to Australian newspapers, to one which today employs over 140 people and produces 4500 editorial and data pages each week for newspapers in Australia, New Zealand and the United Kingdom. Pagemasters is receiving enquiries for its services from newspaper publishers around the world.”

Mr Marshall joined AAP in 2001 having originally spent eight years at the PA Group in a number of senior roles. He was appointed a director of the PA Group in 2000.

Australian Associated Press (AAP)

Founded in 1935, AAP is the national news agency of Australia employing more than 600 people. It provides a comprehensive domestic and international news service to the Australian media, business sectors and beyond - 24 hours a day, 365 days a year.

In addition to the news agency, AAP’s businesses include Pagemasters, the page production outsourcing service; Newscentre, the news monitoring and media intelligence company; and Medianet, Australia’s largest distributor of corporate news releases.

Virtually all of Australia's newspaper, broadcast and digital media subscribe to AAP news services.

http://www.aap.com.au

About PA Group

PA Group owns the Press Association the national news agency of the UK and Ireland.

For over 140 years, the Press Association’s network of journalists has been gathering news and information for the media. Today the company supplies everything from breaking news and showbiz interviews to real-time sports results and weather forecasts.

Other PA Group companies include international weather forecasting business MeteoGroup and CNW Group, Canada’s leading news distribution company.

PA Group employs almost 1500 people. Its headquarters are in London, UK with major operations centres in Yorkshire, England and Mangalore and Puna, India.

PA Group Limited is a private company with 27 shareholders, including Associated Newspaper Holdings Limited, News International plc, Trinity Mirror plc and United Business Media plc.

www.pressassociation.com

Media Enquiries: Michael Gill, Chairman. Phone: +61 (0) 2 9322 8701

AAP's Newscentre Set to Shake up the News Monitoring Market

27 August, 2008

Newscentre, the news monitoring division of Australian Associated Press (AAP), today announced a significant expansion of its monitoring services with the launch of broadcast monitoring - a move that will provide clients with fast access to video and audio news clips at highly competitive prices.

"For far too long there has been no significant competition in the Australian broadcast news monitoring market" said Clive Marshall the CEO of Australian Associated Press. With the launch of Newscentre's radio and television news monitoring service, business and government now have a real choice in broadcast news monitoring - and the opportunity to make significant cost savings."

Two years in the planning and utilising the very latest search technology, the broadcast monitoring service will complement Newscentre's extensive newspaper, magazine and text monitoring service, providing a one-stop solution for organisations who wish to monitor the Australian news media.

To coincide with the launch, Newscentre clients will be able to access their print, text, internet, radio and television clips via a newly-designed online platform, with all their content available at the click of a mouse.

Kylie O'Reilly Managing Director of AAP's commercial divisions said, "Over the past few weeks we have been trialling the service with a number of clients and the feedback has been fantastic. Customers love the ease of use of the new platform, the fact that they can access all of their print and broadcast clips without delay and particularly in the current business environment that they can make real savings on their monitoring services."

"I am delighted that with the launch today, Newscentre can now showcase the service to companies and government departments across Australia.'' Ms O'Reilly concluded.

Media Enquiries: Kylie O'Reilly, Managing Director - Commercial Divisions Phone: (02) 9322 8120

AAP Acquires Capricorn Analysis

11 March, 2008

Australian Associated Press (AAP), Australia's national news agency, today announced that it has acquired the client business of Queensland-based press monitoring service, Capricorn Analysis.

AAP Newscentre will provide the press clipping and analysis services for the newly-acquired business.

AAP Chief Executive Clive Marshall said "this acquisition complements our recent purchase of the Melbourne based Media Research Group (MRG) and gives us a strong base from which to grow our media monitoring business in Queensland. Over the past 12 months through a combination of organic growth and acquisitions our monitoring businesses have enjoyed significant growth. There is clearly a strong demand from both government and commercial clients for media monitoring services that focus on providing a high level of value for money and excellent customer service."

About Australian Associated Press: Australian Associated Press (AAP) is the national news agency of Australia providing news and information 24 hours a day to media, corporations and government in Australia and around the world. Established in 1999, AAP Newscentre provides corporate and government clients with relevant media coverage on any topic from a wide range of Australian publications and sources.

About Capricorn Analysis: Capricorn Analysis provides specialised media analysis services to a number of large corporate and government clients.

Media Enquiries: Kylie O'Reilly, Managing Director - AAP Commercial. Phone: (02) 9322 8120

AAP Acquires The Media Research Group

5 July, 2007

Australian Associated Press, the national newsagency, today announced the acquisition of The Media Research Group (MRG) the Melbourne based media monitoring and analysis company.

Under the terms of the deal, MRG will continue its current operations in Melbourne and its principal, Michael O'Connell, will remain with the company as Managing Director.

AAP Chief Executive Clive Marshall said: "This investment is part of a major commitment by AAP to develop our range of media monitoring, analysis and media distribution services. The acquisition of The Media Research Group will complement AAP's existing media monitoring business, AAP Newscentre. The combined business will enable us to expand our current range of services whilst continuing to provide clients with the highest quality of service."

Michael O'Connell Managing Director of MRG said "Over the last 10 years we have enjoyed considerable success in growing and developing our business. Following the sale of the company to AAP we will be able to invest in our systems, infrastructure and services to ensure that we can continue to capitalise on the enormous growth in demand for media monitoring and analysis services. In addition MRG clients will, for the first time, have the ability to monitor around the clock, in real-time, the editorial newswires of AAP."

About Australian Associated Press: Australian Associated Press (AAP) is the national newsagency of Australia providing Australian focused news and information 24 hours a day to media, corporations and government in Australia and around the world. Established in 1999 AAP Newscentre provides corporate and government clients with relevant media coverage on any topic from a wide range of Australian publications and sources.

About Media Research Group: The Media Research Group (MRG) was established in Melbourne in 1996 with the objective of providing clients with focused high quality cost effective media monitoring and analysis. The company has expanded to become a national operation, undertaking media analysis, monitoring and related services to a diverse group of client roster that include some of Australia's largest and most successful public and privately-listed companies, government departments, not-for-profit organisations and public relations specialists.

Media Enquiries: Clive Marshall, CEO, Australian Associated Press, Tel: +61 (2) 9322 8701