Please see below an article from EPIC Partners providing their daily round-up on markets, which was received this morning (07/06/2024):
No, don’t worry, at least not about us.
In a move that has left many Londoners nostalgic, the Evening Standard, a staple of the city’s daily commute since 1827, is set to transition from a daily to a weekly print edition. This shift underscores the challenges faced by traditional news outlets in an era where financial sustainability is increasingly arduous.
The newspaper has reported significant financial losses, totalling £84.5 million over the past six years, contributing to a decline in circulation from 850,000 to approximately 250,000. Factors such as reduced commuting, increased remote work, and Wi-Fi availability on the Tube have all played a role.
Changing news consumption patterns are affecting the industry globally. These shifts have allowed opportunistic players like Alden Global Capital, often considered a stereotypical “vulture fund,” to acquire numerous newspapers in the US and implement severe cost-cutting measures.
There are other models, however. Reuters, for instance, has capitalised on early knowledge of significant developments to make trades before releasing the news to the market. Hunterbrook Capital, a hedge fund, is copying that model and has raised $100 million to trade based on scoops from its affiliated newsroom, Hunterbrook Media. Unlike firms that take short positions before publishing their research, such as Hindenburg Research and Muddy Waters, Hunterbrook has established Chinese walls between its trading and journalistic arms. Whether this will suffice to fend off regulators and lawyers remains an open question.
The situation with the Evening Standard is a stark reminder of a critical issue: who pays for high-quality, fact-based journalism? Free content with ads doesn’t seem to cover costs, micropayments haven’t gained traction, and many only skim headlines rather than reading full articles. This funding gap is something that opportunistic investors have been keen to exploit, threatening the future of long-form investigative journalism.
High-quality journalism is crucial not only for democracy but also for efficient markets and vital for uncovering malfeasance, from corporate fraud to government corruption, playing a key role in maintaining public trust and informed decision-making. This is also essential for our investments to ensure risk-awareness and appropriate management.
As the Evening Standard’s daily edition sails off into the sunset, rest assured that we will continue to deliver our daily dispatches. We continue to see it, say it. Sorted.
Have a good weekend.
Please continue to check our blog content for advice, planning issues and the latest investment, market and economic updates from leading investment houses.
Carl Mitchell – DipPFS
Independent Financial Adviser
07/06/2024