Adding another string to its bow, Fairfax Media is branching out with another stream of revenue with the launch of energyclubnz – a digital energy business established to help households reduce electricity costs.
Customers pay a small weekly club fee to buy electricity at cost price, with energyclubnz passing those savings onto consumers without clipping the ticket.
Fairfax has taken a 49 percent share in the business with the remaining share held by a management company.
Energyclubnz chief executive David Goadby says unlike big electricity companies energyclubnz do not make any money if people and their family use more electricity.
“Joining the club simplifies what is traditionally a really complicated billing process. Customer feedback about our weekly online billing suggests customers love being aware of how much they are using and having the ability to really manage their power consumption,” says Goadby.
“With a quick search on the web you can switch to a retailer, like us, and typically save hundreds of dollars annually.”
This move follows on from Fairfax Media's expansion into the broadband market last year with Stuff Fibre.
At the time, former Fairfax Media managing director Simon Tong, stressed the need to diversify the streams of revenue feeding into the business.
“Advertising revenue will always be a big part of the business, but we just don’t want it to be the only thing, so around two years ago, we decided to look for options for other revenue,” Tong says.
Goadby says he is encouraging people to jump online to use the bill comparison tool and see how much they can save, envisaging families never having to worry about large, unexpected monthly bills again.
Recently appointed Fairfax Media chief executive Sinead Boucher says partnering with energyclubnz is its next step in helping their communities connect and thrive.
"Our strategy is to partner with businesses that Kiwis will truly value and we believe this product is designed to give people a fairer deal on their energy costs…we welcome energyclubnz into the fold as we continue to explore new opportunities that will support our core business of journalism.”
Currently available in Auckland on both Vector networks, Goadby says they are planning to roll-out energyclubnz across the country in the next 12 months.