Bauer Media Group has announced its closing its publishing business in New Zealand due to the severe economic impact of Covid-19. Video / Bauer Media NZ ...
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Bauer Media Group has announced its closing its publishing business in New Zealand due to the severe economic impact of Covid-19. Video / Bauer Media NZ
NOW PLAYING • Bauer Media NZ is closing its doors
Bauer Media Group has announced its closing its publishing business in New Zealand due to the severe economic impact of Covid-19. Video / Bauer Media NZ ...
Early studies have shown that, if they don't recover, it takes patients around 14 days to die once they start displaying Covid-19 symptoms.
It appears the timeline is similar for businesses. And the virus has claimed its first big scalp in magazine publisher Bauer.
With advertising revenue falling off acliff and the lockdown rules precluding magazines from essential operation under alert level 4, the publisher made a quick-fire decision to pull out of New Zealand.
An internal email broke the news this morning, denying staff the consultation we usually see with such major decisions.
If this shows us one thing, it's that a crisis functions as a powerful accelerator. It's a ferocious shove into the back of a business that was steadily moving in that direction step by step anyway.
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The magazine industry has been in trouble for a number of years. We've seen a steady stream of closures, even among titles that once ruled the magazine aisle.
Cosmopolitan, Cleo, FHM and Zoo Weekly were just some of the casualties we've seen in recent years. And there have long been rumours circling around many of the other publications in the company's portfolio.
A crisis also gives company owners the leverage to make a call that would be tremendously controversial under any other circumstances.
Focus Live: 'Extraordinarily disappointed' - PM Jacinda Ardern on Bauer Media closing it's doors
Bauer Media ? which published North and South, the Listener, Woman's Day and other magazines, announced it was closing. Ardern said she was "gutted" to see Bauer media close its doors. But she said the company refused the wage ...
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NOW PLAYING • Focus Live: 'Extraordinarily disappointed' - PM Jacinda Ardern on Bauer Media closing it's doors
Bauer Media ? which published North and South, the Listener, Woman's Day and other magazines, announced it was closing. Ardern said she was "gutted" to see Bauer media close its doors. But she said the company refused the wage ...
Bauer's owners have used Covid-19 as an opportunity to put aside the carving knife and opt instead for a sledgehammer and put the entire thing to bed.
Letting go at this time also makes sense in the context of last year's rumours that Bauer's owners were looking to offload the business to private equity fund Mercury Capital.
The closure here isn't just quantified in the business numbers or the approximately 250 jobs that have been lost.
This also marks the demise of a platform for some of the most talented and creative designers, writers and editors working in the New Zealand publishing industry.
The cultural currency lost here counts more than we can even begin to understand right now.
Take, for instance, the important role Metro has played for years in giving a voice to Auckland or The Listener's essential duty in digesting the week's big events with thoughtful journalism.
These losses aren't felt in the moment an all-staff email hits an inbox. They're felt in the silence that comes afterwards.
The only hope now is that an independent financier or other business with some cash to spare picks up a few of these publications and gives them new life. But there are no guarantees here.
Bauer, of course, isn't alone in facing these challenges right now.
Yesterday, MediaWorks boss Michael Anderson gave a frank assessment that asking his staff to accept a 15 per cent pay cut was part of the company's "fight for survival".
These aren't the cool, confident words we've become accustomed to from executive ranks during years when the economy was doing well. They ring of the panic that workers throughout New Zealand are feeling right now.
And Anderson isn't wrong in expressing this level of concern.
The advertising business is often seen as the canary in the economic coalmine. Once businesses start to feel the pinch, the marketing budget is the first thing to be put on ice.
The businesses that rely on those advertising dollars are therefore the first ones to feel the brunt of that impact.
Which is to say that might be the first business to succumb but it won't be the last. And every additional week in the lockdown will only bring more companies closer to the brink.
