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How technology is transforming local news

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The news came as a depressing reminder of the realities of traditional TV news.

WIN News will cut jobs and no longer provide dedicated local TV bulletins to regions across Victoria and Queensland, the network announced on Monday.

BENDIGO ADVERTISER – MAY 24

The demise of local TV news has been coming former 20 years. As a 15 year old aspiring journalist, I did work experience with Win News in Ballarat. I remember the News Director telling me how tough it was for the industry. The advertising market had crashed and there was no sign of recovery.

Ahron as a 15 year old at Win News in Ballarat in 1997
Ahron as a 15 year old at Win News in Ballarat in 1997

At that time, Win News presented all of the Victorian news out of its Ballarat state headquarters. I remember watching the anchor Denis Walter present seven bulletins (six pre-recorded and one live) one after another. Denis is a great presenter and showed how much he cared about the local community.

But I wondered about how much you could really know about what’s going on in say, Mildura, when you live in Geelong. Regardless, they had journalists on the ground in those regional centres.

The other thing I noticed was how archaic the systems were. Not just in terms of technology. But all those people, all that great, for half an hour of news. Each reporter would cover three stories a day, and a cameraman/editor would rush along as well. Everyone hoping for a traveller (a story that could be shared across all bulletins for the state).

POPULATION SEACHANGE

But everyone was a slave to the fundamental flaws of TV News to date. It’s cumbersome, and the story is only as good as the pictures. The cost of operating satellites and transmission towers are enormous. I don’t know how they keep the lights on. Compare that to people using a device they already own on a mobile network they pay for to access video and written content they are interested in. We live in a world full of niches. How does a half hour bulletin produced from a different state even compete with that?

Fast forward to 2021, and the retreat of local TV news comes at a time when the population is doing the exact opposite. Net migration to Australia’s regions is at a record high.

Supercharged by the desire to get out of the cities thanks to COVID lockdowns, but also because of technology. With the NBN now up and running in more places, ideally there’s very little difference between working from home in the city, and working from home somewhere a bit further out.

Of course, public transport is still pretty slow in comparison with Europe or Asia, but if you don’t need to travel, many Australians are discovering that a tree change or sea change is a great way to improve their liveability, and cut their costs. After all, the mid 20th century saw a huge number of Europeans migrate to Australia to get away from living on top of each other and to the promise of a quarter acre block.

THE POWER OF LOCAL

I began my career at a local newspaper called the Southern Peninsula Local. It was the bedrock of the local community, and was the independent alternative to the News Corp owned Leader.

My editor, Zoe Sterling, was a brilliant mentor and a fabulous editor. She didn’t just care about the local community, she thoroughly enjoyed sticking it up to authority, whether that be the council or the local politicians. The Local (which people often confused with the pub), was owned by three people who listened to the community and created something unique and special. People were willing to pay 55 cents for it, and the advertisers loved to be involved.

Ahron as a newspaper journalist at The Local, aged 18. With his mother, Carmen, and Zoe Sterling (right)
Ahron as a newspaper journalist at The Local, aged 18. With his mother, Carmen, and Zoe Sterling (right)

Why? Because it owned the community. We all knew every aspect of how it worked and why, and who was in charge or what was to blame.

They eventually sold to a former metro newspaper man who came in, changed everything, dropped the local from The Local, and focused too much on Portsea real estate. Within a year the paper had folded.

Now Australians are turning their backs on cities and moving to the country.

The ABS said a net 43,000 Australians moved to regional areas from capital cities in 2020. That is more than double the number in 2019.

The ABS says a net loss of people from the capitals has been seen before, but the amount of people staying in the regions is new.

NEW EXPECTATIONS

And city people bring with them city expectations. There are already articles about how cosmopolitan voters moving to regional areas may in fact change voting patterns and reduce the conservative grip on regional seats. But that’s a story for another day.

My point is, when John and Linda from Malvern move to Woodend, they don’t just expect great coffee when they arrive, they also expect the same level of infrastructure and service.

Look at the US, where the decline of local news coverage is being blamed for the decline in standards in politics.

As the author illustrates, the laws of supply and demand aren’t working for local news. Even when viewers turned to news in record numbers last year to find out about lockdowns and health advice, the revenue for those local news outlets collapsed dramatically.

The pandemic has accelerated a crisis which has been a long time coming for local news.

The other problem is… the audience doesn’t really know much about what’s happening to local news. Even though in the industry, we can feel and see our colleagues losing their jobs.

In late 2018, 71 percent of Americans told the Pew Research Center that their local news media was doing very or somewhat well financially, even though only 14 percent said they had paid for local news in the past year.

PEW RESEARCH CENTRE

TECHNOLOGY IS ON OUR SIDE

But like every part of our economy, whenever an established presence starts to enter crisis territory, usually the solution isn’t far away.

My father lives in a regional area and I visit him when Melbourne isn’t in lockdown. Five years ago, he was glued to the local news on TV and had the local newspaper delivered every day. During COVID, the newspaper stopped printing, yet his appetite for local news didn’t stop with it.

He turned to his local community Facebook group. He loves it because if there’s a crash on the freeway, he’ll know about it long before a traffic reporter will read it out on the radio. If a pub is closing, he’ll know about it long before a journalist has picked up the story, passed it via the editor, gone out to cover it and compiled a piece for a newspaper that no longer publishes.

The fact is, local news is still happening, it’s just not happening through the three traditional ways – TV, radio and print.

Of course, just like when TV arrived, the movie business found a way to survive. They made fewer but bigger movies, with budgets that TV networks could never imagine. That worked until Netflix came along.

NOT A GOOD TIME FOR MIDDLE-MEN

Following the news from Win, I fear local TV networks across Australia will become nothing more than relay towers for US content and reality shows made in and for the sorts of demographics that buy from Coles in Sydney and Melbourne.

With the sudden rise of streaming services directly from Hollywood studios, how long until people realise that for $10, they can cut out the middleman.

When you find yourself in a situation where your structural costs to operate are so high that you have to pair back or cut the very thing that makes you unique, well, good luck with your business.

Facebook community groups and noticeboards have become the go to place for so many people right around the Australia. It’s a magnificent space of shared ideas and public feedback.

The future of local TV news won’t be just on the TV. It’ll come from within the community, using technology that is now in everybody’s hands. The divide between city and regional living and expectations are dramatically narrowing and the upsides are incredible.

The answer is doing it smarter, and putting local first.

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Tame the market with seven facts to conquer your stock fears

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Embrace the upside: Understanding and navigating stock market corrections

If the idea of stock market corrections makes you nervous, you’re not alone.

However, understanding the truth about stock market corrections can free you from fear and empower you to take control of your financial future.

The fact is, corrections and even crashes are a natural part of the market cycle, and fearing them can cost you more than the corrections themselves ever could.

Investing is a participation game, and sitting on the sidelines out of fear may be the biggest financial mistake you can make.

Let’s explore seven essential facts about stock market corrections and how they can help you overcome the fear of investing.

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Corrections Are Normal

The first fact that will free you from the fear of stock market corrections is that they happen frequently—about once a year, on average, since 1900.

A correction, defined as a market drop of 10% or more from a recent high, is a routine event.

Corrections occur for many reasons, from geopolitical uncertainty to economic reports that don’t meet expectations and even dare I say it, market manipulation!

They’re not a sign of doom; they’re part of the market’s natural rhythm.

Understanding that corrections are a regular occurrence can shift your mindset.

Instead of seeing them as a threat, you can view them as an opportunity to buy stocks at lower prices.

History shows that the market eventually recovers and continues its upward trend, rewarding those who stay invested.

FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange

Most Corrections Don’t Become Bear Markets

Another reassuring fact is that less than 20% of all corrections turn into bear markets, which are defined as declines of 20% or more. The last 20% plus correction we saw was the first six months of 2022.

This means that the majority of corrections are temporary pullbacks rather than prolonged downturns.

While corrections can feel unsettling, they’re rarely the beginning of a sustained decline.

By keeping this fact in mind, you can avoid making emotional decisions during market dips.

Instead of selling in a panic, focus on your long-term goals and remember that most corrections resolve quickly.

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Nobody Can Predict Market Movements Consistently

The fear of corrections often stems from a desire to predict the market’s next move. But the reality is that nobody can consistently forecast whether the market will rise or fall.

Even seasoned professionals and economists get it wrong more often than not. I often find myself talking about people like Robert Kiyosaki and Jim Cramer who are famous for their big claims about the market and being wrong, repeatedly!

This unpredictability highlights the futility of trying to time the market.

Instead of attempting to guess when a correction will happen, adopt a long-term investing strategy.

Staying invested through market ups and downs ensures you don’t miss the eventual recovery and growth.

The Market Rises Over Time

Despite short-term setbacks, the stock market has a long history of rising over time.

From 1926 to today, the S&P 500 has delivered an average annual return of about 10%.

This growth includes periods of corrections, bear markets, and even major crashes that includes the pandemic.

The lesson here is clear: the market’s upward trajectory rewards patience and consistency.

Short-term volatility is a small price to pay for long-term gains. By staying invested, you allow compounding to work in your favour, growing your wealth over time.

Bear Markets Are Rare and Temporary

Historically, bear markets—declines of 20% or more—have occurred about every three to five years.

While they can be unsettling, they are temporary and eventually give way to bull markets.

The average length of a bear market is about one year, while bull markets can last for several years, far outweighing the declines.

Knowing that bear markets are infrequent and short-lived can help you maintain perspective. Instead of fearing them, view them as part of the natural cycle that leads to long-term growth.

In fact, bear markets can be a good time to purchase stocks that you have identified as good long term growth prospects and add to them at the reduced prices, while others are exiting in fear.

I call this turning the tables and becoming a professional of the market.

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Pessimism Turns to Optimism

Another key fact is that bear markets inevitably give way to bull markets.

Pessimism about the economy or corporate earnings is eventually replaced by optimism as conditions improve.

This cycle of negative sentiment turning positive is what drives market recoveries and new highs.

Understanding this dynamic can help you stay calm during periods of market stress.

When others are panicking, remind yourself that optimism and growth are on the horizon.

Staying invested allows you to participate in the recovery.

The Greatest Danger Is Staying Out of the Market

Perhaps the most important fact is that the biggest danger to your financial future isn’t a market correction or crash—it’s being out of the market entirely.

Missing just a few of the market’s best days can have a devastating impact on your long-term returns.

For example, if you missed the 10 best days in the market over a 20-year period, your returns would be significantly lower than if you had stayed invested throughout.

Let that sink in for a moment, just 10 days, and they aren’t published beforehand for everyone to know when they are coming.

This highlights the importance of participating in the market, even during periods of volatility.

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Conclusion: Embrace Stock Market Corrections

The fear of stock market corrections often stems from misunderstanding their frequency, impact, and role in the investing process.

By embracing these seven facts, you can shift your perspective and see corrections for what they are: temporary setbacks that lead to long-term growth.

The key takeaway is clear: fear of what might happen is costing you your financial future.

Investing is a participation game, and staying on the sidelines guarantees you’ll miss out on the market’s growth. Take control of your financial future today, embrace corrections as part of the journey, and focus on the long-term rewards of staying invested.

Andrew Woodward is the Founder of The Investor’s Way and host of Investment Insights on Ticker.

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Why America is done with European drama

Putin gains leverage as Trump shifts US stance on Ukraine, sparking concerns over exclusion of Europe from negotiations.

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Vladimir Putin gains leverage as Trump shifts US stance on Europe and Ukraine, sparking concerns over exclusion of Europe from negotiations.

In Short

U.S. Defence Secretary Pete Hegseth stated that returning Ukraine to pre-2014 borders and NATO membership are unrealistic, suggesting a shift in negotiations that may exclude Ukraine. Meanwhile, former President Trump had a significant call with Putin, indicating a willingness to lead peace talks without European consultation, raising concerns among European leaders about their role in discussions and Ukraine’s future.

Hegseth stated that a return to Ukraine’s pre-2014 borders and NATO membership for Ukraine were unrealistic in negotiations.

These remarks suggested that Russia would not need to negotiate over Crimea nor consider NATO military presence a red line.

Shortly after, President Donald Trump revealed he had a “lengthy and highly productive” call with Russian President Vladimir Putin, indicating a willingness to lead peace talks without prior consultation with European leaders or Ukraine.

The announcement caught the international community off guard, sparking fears that Ukraine might be sidelined in future negotiations.

But is this really surprising? It’s evident that President Biden was Zelensky’s ally, and while the Ukrainian president remained hopeful (and had to be) that Trump would follow the same path, he likely anticipated changes once Trump took office.

Appeasement approach

For months, Trump has been promising to end the destabilising Ukraine/Russia conflict. Anyone experienced in negotiation knows you never reveal your next move to your adversary. Trump’s openness about his goals was likely seen as an indication that he understood the only way to contain Putin was to make him feel victorious.

Many are upset by this approach, arguing that ‘appeasement’ sends the wrong message to Putin and other authoritarian leaders. However, reality differs from textbook scenarios—the old saying ‘we won’t negotiate with terrorists’ doesn’t hold up when the terrorist possesses nuclear weapons. M.A.D. was intended to prevent World War III, and it has so far succeeded.

After nearly three years of stalemate and hundreds of thousands of deaths, the only way Ukraine can fully expel Russian soldiers is if the US, UK, and Europe deploy troops. But in which direction does that push the war?

What happens if Russia eliminates an entire UK or US battalion? The situation can escalate rapidly.

Those comparing Trump to Chamberlain in the 1930s are overlooking the fact that Hitler did not have nuclear weapons.

Munich conference

During a major security conference in Munich, JD Vance criticised Europe, questioning its current values. This remark did not sit well with European leaders, who expressed their dissatisfaction and raised concerns about the U.S. commitment to NATO and their involvement in regional security discussions.

For those who completely disregard NATO or Europe’s support for Ukraine over the past three years, consider this: without the defence of Ukraine, how easily might Russian troops have invaded and occupied the country by now?

At least there is still a country to recognise. Perhaps having 80% of something is preferable to having 0% of nothing.

Ahron Young is Ticker’s founder and Managing Editor.

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Ticker Views

Why interest rate cuts alone won’t save Aussie business

Impact of interest rate cut on mortgages, rents, and BHP’s profits amid economic recovery signs and trade tensions.

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Impact of interest rate cut on mortgages, rents, and BHP’s profits amid economic recovery signs and trade tensions. But what about business?

In Short

An expected interest rate cut may help mortgage holders by increasing disposable income but could also reduce savings interest for homeowners. Meanwhile, BHP reports a profit drop but remains optimistic about demand despite global economic uncertainties.

As the RBA meets to cut interest rates by .25%,  the change in cost of money will affect individuals based on their financial circumstances. For some, it’s the start of a new era of hope, for others, it’s too little, too late.

The covid 19 pandemic, and government actions since have taken the country’s economy on a rollercoaster ride it didn’t need or ask for. It was the second half of 2019 that economists were warning that Australia may need to look at quantitive easing. How times change. Even the RBA governor was unable to predict just how drastic the inflation bubble would be.

Housing costs play a vital role. Approximately one-third of Australians have mortgages, typically on variable rates. A rate cut may increase disposable income for these borrowers, but just how they will spend that extra cash is circumstantial. For many, it will be spent just the way it is now – getting on top of their mortgage. For others, they’ll be looking at returning to a ‘normal’ life – going out for dinner, and even visiting the supermarket, which is more and more seen as a luxury these days.

Rental market

Around one in three Australians rent, and many rental properties are mortgaged. Lower mortgage costs could relieve pressure on rental prices, though rents rise due to demand and supply issues.

Homeowners, comprising nearly one-third of the population, may see reduced interest earnings on savings due to a rate cut. They often have significant assets benefiting from higher rates currently.

How many cuts?

Predictions on the number of potential rate cuts vary among major banks. Commonwealth Bank and Westpac anticipate four cuts, NAB expects five, while ANZ predicts two. These forecasts may change post-RBA meeting depending on economic outlook.

So how are our businesses doing? Well big business has had a rollercoaster ride too.

BHP remains optimistic about product demand despite economic uncertainties, citing resilient performance in the US and growth in India. An interim dividend of 50 cents per share has been declared.

But for small business, it’s going to take a lot more than one rate cut to strike up the engine. What has always been a delicate balance has swung too far in the wrong direction for a lot of businesses. And while rate cuts may inspire more spending in the economy, there are too many other factors, notably government policy, that businesses need to see change before they’re willing to invest heavily again.

Ahron Young is the Founder and Managing Editor of Ticker.

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