2019 CEO survey: Michael Miller, News Corp Australia

News Corp Australia’s Michael Miller says the economy is in need of some long-term planning.

News Corp Australiasia executive chairman Michael Miller, Picture: Britta Campion

Each year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.

Here, in his own words, is what News Corp Australiasia executive chairman Michael Miller sees ahead in 2020.

You can read more from the CEO Survey here.

How is your company affected by low-interest rates and what is needed to boost the

economy?

Low-interest rates send the wrong signals about an economy that in many ways is in a sweet

spot: inflation and unemployment are low, key exports are strong. The Federal Budget is

heading for its first surplus in a decade, and a generation of Australians have benefitted from

28 years’ unbroken economic growth. Exactly where we’re heading may not be clear given

global uncertainty but nor can it be said we’re heading to hell in a handbasket.

With a new decade ahead, the government has a mandate and the financial know-how to

meet the challenges head-on to set a new national agenda.

What is the impact of government regulations on your company, including those

applying to the financial sector?

As the Government and ACCC have identified, digital platforms are unavoidable trading

partners for media companies, and there is a big imbalance in bargaining power in those

relationships –heavily in favour of the platforms. Governments and regulators around the

world – including in Australia – are moving on these issues, which we welcome. The

application of real-world laws to the digital giants is key to local content creation.

What percentage of company revenues are spent on research and development, and

how is your company using technology to improve performance?

Research and development are more than lines on our balance sheet. By combining our

traditional news instincts with the science of data, we’re creating a virtuous circle that

generates vast amounts of data from the 16.7 million Australians we reach monthly. Our

data analysis then helps us craft innovative solutions for our commercial clients for them to

engage with more than 2000 separate customer segments we’ve identified.

What are the three major policy issues facing the country and what should be done

about them?

We need to take the long view and refresh the Australian story with the economy the

centrepiece. Our leaders – political, business and community leaders – need to have the

courage to take the hard decisions, whether it’s making big calls on investment to create

jobs and wealth or the long-term policy settings that allow business – both big and small – to

take a chance. Combining our willingness for hard work with our creativity will sharpen our

competitive edge regionally and internationally. The start of a new decade and the approach

of the quarter-way mark of the 21st century is a good time to start.

What are the major impediments to long-term growth facing your company and what

can or is being done about them?

Many of the trends impacting our business are being influenced by new competitors –

especially in technology, regulatory and policy shifts and changes in national and global

economic cycles. The strength or otherwise of a business like ours – stretching from

journalism to subscription television and entertainment, to real estate to marketing services

and everything in between – really reflects this broader story.

Second, the biggest shift in the world at the moment is the inevitable rebalancing of the

relationship between the tech giants and the rest of the economy. Media companies have

now endured 20 years of disruption. Their stranglehold is not over yet, but the signs are now

very encouraging that it is coming to an end.