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JOHANNESBURG. — In a development that will shock readers and the South African media establishment, Media24 is set to close several of its mainstream print publications, including City Press, Rapport, Beeld, and Daily Sun.
It is understood that the axe could fall in October. Four sources at the media company have independently confirmed that a decision has been taken to close them.
It’s further understood that the only print publication in the stable remaining in circulation is the Cape Town-headquartered Die Burger.
Ishmet Davidson, CEO of Media24, in his response, said:
“Media24 continuously reviews its operations to protect viability and long-term sustainability within the context of its transition to an increasingly digital media landscape.
“We will also continue to consult with staff about any potential and subsequent actions and remain committed to following due process. We do not comment on rumours or speculation, nor on the details of any internal processes.”
The decision comes as Media24 and other companies in the print space grapple with financial losses, primarily driven by escalating distribution costs, diminishing advertising revenue and a readership migration to online platforms.
It is unknown whether Media24 will create individual online brands for the newspapers, as their content is aggregated as sub-sections of its News24 and Netwerk24 portals.
One source tells Moneyweb that while the announcement is not common knowledge within newsrooms and advertising departments, there has been “general anxiety” in the company for a long time.
Rival titles in other media groups, including the Arena-owned Sunday Times and Business Day, are also experiencing pressure.
One explanation for Die Burger’s continued publication could be its more robust financial performance or lower distribution costs compared to the northern titles. — Moneyweb.
Online Reporter