As speakers at the ACMA conference talk about convergence, and media analysts track the evolving company changes and potential takeovers from the new media legislation, two more media companies are working together to create commercial synergies in the online world. Austereo and Fairfax Digital have just announced they had signed a heads of agreement to share online content and technology.
Under the agreement, Austereo proposes to host its Triple M and Today network websites on Fairfax Digital’s industry-leading technology platform, and utilise Fairfax Digital’s sales force to augment its existing sales presence.
In return, Fairfax Digital will obtain access to Austereo’s innovative entertainment content and its deep relationships with the 18 to 49-year-old demographic, which the Austereo networks lead in the capital city radio markets.
Austereo CEO Michael Anderson says:
“During the past three years we’ve achieved success with our digital strategy through our Austereo Interactive team. We lead the industry with innovative digital content, including our very successful podcasts.
“Building a stronger online presence has now become a strategic priority for Austereo and this agreement will drive our online strategy to the next stage. It will enable us to bring our plans forward by 12 to 18 months. Within Austereo we have dramatically increased the resources dedicated to creating digital content for our sites.”
Anderson hopes the agreement will “significantly improve” the way the company delivers online content to audience and clients, without the need to invest in infrastructure or a dedicated online sales force resulting in “a positive financial outcome” in the medium to long term.
“By sharing our online content with Fairfax Digital we will be able to deliver our compelling entertainment to an even broader audience through websites such as smh.com.au and theage.com.au. In addition we will be able leverage off the strength of Fairfax Digital’s content in a number of areas that fall outside our core programming, but which are important to our online offering,” says Anderson.
All Austereo websites will be re-launched with new features and new content over the next six months, with the goal of “being a major online force in the entertainment and music space.” The new strategy is expected to unlock new audience and advertiser opportunities for the company.
Fairfax Digital Chief Executive Officer Jack Matthews says there will be benefits for Fairfax Digital because of Austereo’s “very strong relationship with its audience.”