Fairfax to charge for mobile content

Fairfax Media CEO Brian McCarthy says company will soon launch its subscription-based news products.

FAIRFAX Media Ltd will begin charging for some of its online news content within a matter of weeks when it launches its first subscription-based smartphone applications.

Chief executive Brian McCarthy said on Friday the company would launch smartphone applications, or apps, for its four major online news mastheads - smh.com.au, theage.com.au, brisbanetimes.com.au and watoday.com.au - in the next few weeks.

"(This marks) the first move by Fairfax Media to charge for its online news content on a mobile phone," he told an American Chamber of Commerce in Australia luncheon.

"I'm not going to reveal the pricing on these devices until closer to their release in a couple of weeks, but I will say it represents terrific value and I'm confident that smartphone users will find it very attractive."

Mr McCarthy said Fairfax's yield on such products would be low in their early stages, but forecast higher prices once audiences are established in order to improve returns.

"It's going to be quite a delicate balance for the early years as we move through that phase," he said.

Fairfax is developing around 40 more apps for smartphones and tablets, such as the iPad, which were expected to be released in the coming months, Mr McCarthy said.

Mr McCarthy said he was confident of Fairfax's ability to meet the challenge of newspaper publishers adapting to new digital platforms and consumer needs.

"I know and I sense we are now moving into a very much more positive era, and feel very confident about it," he said.

"I think media companies are done with the doomsayers, and we're now focused on the tremendous possibilities ahead of us as new platforms and channels for our content emerge.

"There is no doubt they will be challenging times, but I also think they will be very exciting times, and we are very well positioned to adapt."

Fairfax shares were up 1.5 cents to $1.515 at 1500 AEST.