Print giant Caxton’s moves in the media industry could be at the expense of the Independent Group, write Donna Block and Mungo Soggot
The appointment of one of South Africa’s most respected journalists, Tim du Plessis, to the editorship of The Citizen could trigger a new press war as the tabloid takes on The Star to become the country’s top daily newspaper, media industry sources are speculating.
Print giant Caxton, which owns The Citizen, confirmed this week that Du Plessis, former deputy editor of Beeld and currently deputy editor of City Press, had been made editor-in-chief of The Citizen.
Caxton chair Frederick van Zyl Slabbert effectively threw down the gauntlet to the Independent Group, and in particular The Star: “We believe Du Plessis is suitably equipped to fulfil our ambition for The Citizen of becoming South Africa’s premier daily newspaper.”
Slabbert said Caxton was not specifically targeting The Star: “We want to take on all comers in the daily market.”
Asked whether Caxton’s strength in the classified advertising market, combined with its new emphasis on editorial, would be a particular challenge to the Independent Group, Slabbert said: “We must accept that the whole newspaper industry is in a state of dramatic transition, and they [newspapers] are all going to have to fight it out on all fronts to see if they are going to survive in the next two years. We are not going to stand back in the process.”
Caxton has already said it will invest heavily in The Citizen, a commitment which is likely to include heavy outlays on its editorial team.
The Citizen was previously seen as a mouthpiece of the National Party government, which launched the newspaper using rugby supremo Louis Luyt as a false front. The Citizen has stuck to its conservative editorial line, while its news pages are filled almost exclusively with articles pulled from the South African Press Association (Sapa) wire agency.
Du Plessis, on the other hand, is widely credited with having driven the political transformation of Afrikaans daily Beeld, which has long shed its allegiance to the NP and which is considered by many journalists to be the country’s most thorough daily newspaper.
Du Plessis, who was in line for the editorship of Beeld before he was transferred to City Press, is also credited with having provided a shot in the arm to City Press’s editorial team.
The Citizen was previously owned by Perskor, which was acquired by Caxton last year. The acquisition transformed Caxton from a “knock and drop” operation into a fully-fledged newspaper company. Caxton’s chief, Terry Moolman, is regarded as the most ruthless and effective operator in the print industry. Moolman long nursed the ambition to shift Caxton’s focus to proper newspapers, and, in particular, take on Independent Group and Nasionale Pers.
The editorial changes at The Citizen take place amid continued speculation about a tie-up between Caxton and Times Media Ltd (TML), owner of the Sunday Times and Sunday World. The two companies have a common shareholder in the form of media and telecommunications group Johnnic, and its listed subsidiary Omni Media.
TML has had a difficult year. Last month it shut down its fledgling daily sports paper, Sportsday, and it is believed to be sustaining heavy losses on the new title, Sunday World, which is a partnership between it and New Africa Investments Limited, publisher of the Sowetan.
While Johnnic sources admit that there could be a possible alliance between Caxton and TML, the wholesale acquisition of TML by Caxton is for the moment being ruled out. “TML is not for sale,” said Johnnic’s Paul Jenkins this week.
Caxton’s Slabbert said that “lines of communication” were open with TML, but could not comment on any specific developments.
Industry analysts have repeatedly said a tie-up of some form between TML and Caxton would make sense. One analyst remarked that “it would be a great fit and there would be benefits to both sides. But only time will tell. It is premature to speculate at this point.” And a tie-up would naturally mean stiffer competition for the Independent Group, which is sustaining substantial losses on its South African titles.
Industry sources said the key question where The Citizen’s development was concerned was whether Caxton decided to distribute the paper outside Gauteng. Slabbert said this week that Caxton would consider circulating The Citizen elsewhere, although that was a “technical” decision that still had to be taken.
Meanwhile, one source speculated that an aggressive Citizen could be stymied by rival groups, such as Independent or Nasionale Pers, who hold a controlling stake in Sapa. If they decide to shut down Sapa, they could undermine The Citizen’s access to news.