Hidden agenda in NZX purchase of CPL?

I greeted uncrtically the news that NZX was buying Country-Wide, publishers of most of of the papers which get delivered free to rural mail boxes, including my favourite NZ Farmers Weekly.

Others aren’t so innocent.

Cactus Kate finds some sharp knives in the NZX Haystack .

Jenni McManus reports  that Trans-Tasman editor in chief Max Bowden has made a Commerce Commission complaint because he thinks NZX is trying to act as regulator in a market in which it would be a participant.

At issue: whether an organisation calling itself a regulator should be cornering the market in anything, let alone a commercial enterprise, by acting as both a player and the market enforcer.

Adolf at No Minister smells something fishy and asks:

How can it be that the regulator of share trading activities in New Zealand companies an be allowed to itself operate trading companies which are not part of its core activity, namely regulation? What happens when one of its own companies transgresses?

Roarprawn also smells something whiffy and agrees with Fran O’Sullivan who questions why the stock exchange is putting on gumboots.

Expanding into publications during the economic downturn is a bold move.

The Cross memo explains that the NZX is getting into an “advertising-reliant media publication” in this climate. She contends print media are the best way to contact farmers while internet access remains slow and inconsistent for rural New Zealand.

“This protects to a certain extent rural publications from the downturn in advertising in mainstream/daily media publication and, second, farmers’ behaviours as the majority still read physical papers instead of accessing the internet for their news and information.”

The memo predicts it will be more than five years before farmers swap to online news services.

I’m not so sure about that, improvements to rural boradband services are moving quickly. We’ve got wireless broadband but discovered by accident we could get a much better service through the phone line now.

I’ve always used “you don’t do rural broadband” to put off people wanting us to change to telephone providers. But when I used that line with a cold-caller on Monday I was told they did and we could get broadband access via our phone line. I phoned Telecom to check and was told that our exchange had been upgraded and our phone line could now deliver broadband.

If that service is as good as promised more country people will turn to the internet for news rather than waiting for the papers which come with the mail – which for us isn’t until early to mid afternoon.

This point is made by Quote Unquote who also has questions about the NZX purchase of CPL.

. . .  there are some astute comments about magazine publishing in general which Weldon could consider – in particular, Rundle’s key line:

To go into the magazine trade now is like starting a stable just as the first Model T Ford rolls off the line.

We’ve been getting a regular stream of change-of-address emails from farming friends who have discovered they no longer have to rely on dail-up access to the internet.

The service we get in the country still doesn’t deliver the ultra-fast speeds available in cities, but it won’t be far away and when it comes, our readinghahbits will change.

You can’t tuck a PC into your back pocket as you do with a paper when you’re heading up the back paddock . But if you’ve already read the news on the net  over breakfast you won’t need to.

The question of who’s going to pay for the news on internet will wait for another day.

5 Responses to Hidden agenda in NZX purchase of CPL?

  1. Cactus Kate says:

    5 years seems like a long time doesn’t it and the assumption NZX makes is a tad arrogant again that farmers won’t get online even at a dial up speed to view online publications and business media. You are proof that this is not the case.

    Even funnier is the assumption that farmers are in favour of a futures and commodities market. Homepaddock – please opine on a general farmers opinion of Auckland paper shufflers and speculators? Particularly the exchange speculators. I can’t do it without using expletives.


  2. What I find most odd, and this is something I have posted on at my place, is why is the NZX of all things investing in assets which globally are in meltdown?
    I find it hard to believe that Weldon has some magic cure for the media that somehow has eluded everybody else.
    Unless his plans are really sinister and there are conflicts of interest like editorial independence to worry about.


  3. Colin Lucas says:

    Weldon was talking about agricultural futures this morning on One.
    For the life of me I couldn’t work out why my farming relatives would want to go there.
    It’s hard enough for a farmer to a make a buck as it is so why farmers would want to risk cash on something that is nothing more than a glorified casino is beyond me.
    Weldon has all the hallmarks of an empire builder.


  4. […] Wada we think of paper shufflers? Cactus Kate  left a comment asking me to: […]


  5. Farmer Baby Boomer says:

    Cactus Kate as a Fonterra Director. Would this have merit? Posts on her blog such as the “Finding Sharp Knives The NZX Haystack”,which you have linked to HP,and “Job Summit Head Slashes Costs 25%” suggest Cactus would have Fonterra Suppliers interests at heart.


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