Ryan Stokes’ vision for new national media conglomerate that will set the standard and bring ‘accountability’

Ryan Stokes has opened up about his lifetime in business to dispel often-repeated claims he is less committed to the family’s newspaper, TV and digital media interests than father Kerry, who founded Seven West Media. Mr Stokes, the chief executive of SGH, which owns 40 per cent of SWM, talked up the importance of traditional media for society and said he would continue to back the industry. He scoffed at suggestions he was at odds with his father about any aspect of the family business, including the media. “Kerry and myself might have different styles and approaches but fundamentally we are absolutely aligned on trying to get the business to realise enduring value,” he said. “In a family where business is a key part of what we do, media has been there all along. In the personal context, it’s 25 years of involvement and support.” Mr Stokes said one of his earliest and fondest memories was in the in the 1980s, during the acquisition of Channel Seven in Canberra, “I could remember, even though I was barely old enough to remember, being in the boardroom.” He describes it as a “key part of my life”. “I feel proud of that.” Mr Stokes will continue as a director of the new company after the merger of SWM and Southern Cross Austereo while his father will step back and continue as a special adviser to the board that will oversee the Seven Network, The West Australian, The Nightly and FM radio networks Triple and Hit as well as audio platform Listnr. SGH will be the dominant shareholder in the new company, holding 20 per cent of the stock, and Ryan Stokes will be a director. “There’s always been an appreciation for the role media plays. It informs, engages and connects audiences. It’s a commercial enterprise that fills a critical role and to be able to fill its role supporting consumers, customers, employees and shareholders, it needs to be commercially successful. That’s been a key focus.” Mr Stokes said it was critical that traditional media companies became financially stable because it was only then that they could fight back against the “scary phenomenon” of a world dominated by social media platforms. “There is clear accountability that comes with being an editor or a publisher,” the 49-year-old said. “When you look at some of the social media platforms, often it is an algorithm designed to create engagement and connection without any accountability on impact. “Misinformation is allowed to run rife as long as it creates engagement and the positive bias towards your own beliefs and opinions further drives that engagement. “So, you see a world that isn’t framed by honest and accountable reporting; it’s basically just audience manipulation. That’s a very scary outcome.” Mr Stokes said big tech had a commercial interest in aggressively guiding consumers and mainstream media had “an important role to counter that”. The increasing use of artificial intelligence created an opportunity for traditional media to win the trust of audiences, he said. “There’s an attribution to an individual (in mainstream media) and there’s accountability that comes with that,” he said. “When the question of what’s real or what’s not becomes more challenging to determine, the importance of the role of publishers becomes greater.” Mr Stokes said the role of seeking truth put media brands in the firing line but that should not deter companies from backing themselves in. “With any business there are going to be issues but with media there is more attention to that,” he said. “The frustration for us is when the issues are caused by our own actions. There are challenges, of course, but if you look at what we have done in driving digital audiences at 7 Plus and what The West has done building its audience at The Nightly, there are some really exciting elements. “The culmination will be with radio, where we can promote audiences between radio, television and digital and create some greater value for advertisers. The excitement about being able to unlock value and see that value created for all stakeholders far outweighs the challenges.” Mr Stokes said the integration of Channel Seven and The West Australian in Perth could be a blueprint for a combined Seven West and Southern Cross Media. “What we found with the success of The West and Seven was the importance of working together to create a stronger presence,” he said. “That was a successful model and if we can emulate that in other markets with what we can do with radio and TV that would be a great outcome.” The merger will see Seven West Media shareholders get 0.15 Southern Cross shares for every Seven West share. That carve up will result in Seven West stock owners holding 49.9 per cent of the combined company, with the radio business owning the remaining 50.1 per cent. If approved by regulators, the new company will be chaired by Kerry Stokes until February, at which time he will hand over to current Southern Cross chairman Heith Mackay-Cruise. Seven West chief executive Jeff Howard will be the boss of the business.