Fairfax 'open' to talks about online news charging

SYDNEY - Fairfax Media managing director Brian McCarthy said he would be "happy to talk" to rival News Corp about a plan to charge readers for accessing online news content.

McCarthy's comments came after Fairfax posted a net loss of A$380 million ($470.18 million) for the year to June 30, due to a downturn in advertising and writedowns forced by the financial crisis.

"We're looking at all the options and if that's one of the options we'll look at it," McCarthy said on a teleconference today.

Rupert Murdoch, chairman and chief executive of News Corp, said in August his global media group would start charging for access to online news content this financial year to combat falling advertising revenue.

News Corp owns newspapers around the world but currently only charges for access to the Wall Street Journal online.

News Corp's Australian newspaper stable includes Melbourne's The Herald Sun, Sydney's The Daily Telegraph and the nation's only national newspaper, The Australian.

Fairfax's newspapers include The Sydney Morning Herald, The Age and The Australian Financial Review, which operates on a subscription model.

McCarthy said if News Ltd chairman and chief executive John Hartigan were to ring him: "I'd have a chat and we'd look at it".

"It certainly would be something we'd be open minded to at this stage."

However, he said Fairfax would need to better understand the detail of Murdoch's plan.

"We need to understand the detail.

"We've got to be careful here because we are competitors in the market.

"There is a group called the ACCC (Australian Competition and Consumer Commission) and whatever we do, we have to make sure we're doing it within the law.

"Putting that to one side, as I said I'd be happy to talk to anybody about any suggestions."

The Los Angeles Times reported on its website last week that News Corp's chief digital officer Jonathan Miller had met with executives from the New York Times, Washington Post, Hearst Corp and Tribune Company to discuss the formation of a consortium to charge for online news content.

- AAP