Australia

Jun 25, 2012

Essential: broadsheets best placed to survive online

Broadsheet readers are more willing to pay for newspaper content, today's Essential Report finds. And voters have some peculiar ideas about the impact of the carbon price.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Broadsheet readers are more willing to pay for online subscriptions than tabloid readers, this week’s Essential Report shows, with the Sydney Morning Herald best placed to lure readers behind a paywall.

2 comments

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2 thoughts on “Essential: broadsheets best placed to survive online

  1. Scott

    Most people are comparing the carbon tax with the GST. Hence why they believe the prices of goods will go up (especially in regards to electricity and food), which they will, at least in the short run.
    0.7% additional increase in CPI might not sound like much, but that isn’t an extra 0.7% of the CPI (i.e CPI*1.007), but 0.7%+CPI. When the CPI is running at 1.6% at the moment, that’s almost a 43% increase, not a 0.7% increase. It will have an effect on prices, any way you look at it.
    The logical progression from this is that the increased inflation will result in the Reserve lifting interest rates to slow it down (which the RBA did as a response to the introduction of the GST). This would definitely be the case if inflation was at norm (3-4%), but may not necessarily be the case with inflation pretty low at the moment and a weakness in the global economy.
    As for unemployment and fuel prices…well the laws of unintended consequences might apply here. If oil refinery companies are paying the carbon tax, they may pass it on through increased wholesale prices and petrol retailers may also increase prices at the bowser to compensate.
    Unemployment is harder to judge, but all depends if the carbon tax affects economic growth. If it does, and I believe it will in the short run, it will increase unemployment (in the first 1-2 years). In the medium to long run, Treasury believes that growth will not be that affected, so employment should come back.
    So the responses are not that surprising in my opinion. I’m pretty bearish myself about the carbon tax. Might have been a different story if it went straight to a ETS (as it would come in at a lower price), but at $23 a tonne, it is going to hurt a bit.

  2. Arty

    The laws of unintended consequences are always a worry when a completely new and expansive system is introduced. It appears that it has been “locked up” with the effect that desirable fine-tuning might be difficult.

    I appears to me that two parties like it. The Greens because it will enable them to capture more of the traditional Labor vote. The Coalition because it is so complex that it is a vote gift to them.

    I am still concerned with the nasty effects of the carbon price on Black Caviar.

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