Launches Circulation Readership Metro Legislation Argentina, Brazil, Top 10 North-American Growth in Spain, Italy, Gloomy 2008 Romania, Sweden USA, Greece (P
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FDN NEWSLETTER NO. 36 – www.newspaperinnovation.com - 830 subscribers – July 2008 Launches Circulation Readership Metro Legislation Argentina, Brazil, Top 10 North-American Growth in Spain, Italy, Gloomy 2008 Romania, Sweden USA, Greece (p. 2) free dailies (p. 2) Greece and Israel. (p. 3-4) outlook (p. 4) UK, Israel (p. 4-5) Germany – the €400 million question Bogus numbers & weird plans How €400 million is calculated and who the sources are is ermany is the big white spot in Europe when it mysterious. It looks like a attempt to raise the entry comes to free dailies and the most contested spot barrier. Launching costs were between €10 and €20 as well. Between 1998 and 2008 paid circulation million in Spain, France, UK and the Netherlands – G Germany with a launch in 8 to 12 markets might be costly dropped with 20% from 25 to 20 million. With a substantial and growing number of non- readers, it could but €400 million seems excessive. Why a free daily ‘must’ be a perfect market for free newspapers. be launched in several markets at the same time is also not clear. Six years before break-even seems reasonable, but even then €400 million would be over the top. After Sweden, Finland and the Czech Republic, th Germany was the 4 European country with free dailies. Focusing on Deutsche Post is barking up the wrong tree. In 1998 15 Uhr Akuell started in Berlin, and launched in DP only could play a role in a home-delivered free daily – Munich and Hamburg in 1999. After losing €10 million one of the most expensive and difficult business models. the paper folded in 2000. Examples from Denmark, Czech Republic, Switzerland, . In 1999 Schibsted launched 20 Minuten in Cologne. the USA and the Netherlands actually demonstrate that Axel Springer (Bild) and local publisher DuMont such a delivery is not very successful and is only tried in a Schauberg launched their own titles, sued Schibsted, crowded market as a last resort. started a war on ad rates and made Schibsted close 20 Minuten in 2001. Both competitors closed down as well. The real barriers . In 2006 Holtzbrinck (Handelsblatt) converted their This doesn’t mean launching a free daily in Germany is tabloid News into the free Business News while without problems. But it does mean problems could lie DSV/Lufthansa launched Die Sportzeitung. Within one elsewhere. The most important is the behavior of year both titles closed down. incumbent publishers. In the past they have sold ads . Four free train/plane papers were launched as well: IC- below cost price, joined forces in fighting and preventing a Press (Der Spiegel, 1997–1999), Financial Times free daily and made deals with subway operators to ban Deutschland Kompakt and Handelsblatt am Abend free dailies in return for free advertising. (Holtzbrinck) in 2003, and Süddeutsche Zeitung Primetime in 2007. Welt Kompakt started distributing for Most of these actions actually prevent competition and free in first class trains. Joint circulation: 50,000. could be brought forward to the Bundeskartellambt, the German anti-competition agency. So far legal actions Both Metro and Schibsted wanted to go to Germany while have been directed towards free dailies, but it could be also Dagsbrun (Iceland) made plans. All plans have been the other way around as well. met by heavy resistance. Springer is said to have a ‘war fund’ of €300 million ready and could launch competitor German publishers seem determined to go all the way Gratissimo ‘within days’ while WAZ – the second German against free dailies, overlooking the chances and being publisher – also wants to fight a free daily at any cost. responsible for the fact that in Germany young people hardly read newspapers. Deutsche Post already delivered a free weekly and planned a new one covering online issues. This angered FDN - BAROMETER German publishers. Between the two not much love was lost after publishers WAZ, Holtzbrinck and Springer The FDN barometer measures free dailies and circulation, started their own (now defunct) postal service PIN. comparing end 2005 with July 2008. With plans for a free daily, Deutsche Post is more careful, Free Dailies 2005 / July 2008 (circ. * 1000) Jürgen Gerdes, chief of the mail-division “wouldn’t dream of starting something like that without the consent or Countries Titles Circulation 2005 2008 2005 2008 2005 2008 cooperation of German publishers” according to FT Europe 24 32 83 130 15,404 28.843 Deutschland. FTD reveals that Deutsche Post has America’s 9 10 47 76 4,792 6.618 approached all major German publishers with their plans. Asia/Pac/Afr 10 16 20 37 4,409 8.616 total 43 58 160 243 24,605 44.077 Fast declining circulation and readership might be the cause for renewed interest in a free newspaper, before This issue of newspaperinnovation is sponsored by foreign publisher invades the country. FTD cites ‘informed sources’ who state that it would take at least six years for a German project to break even, and that such an Streamline production and meet operation would cost €400m at least. deadlines more easily? Reduce costs, while improving quality? Director Dietmar Wolff of the German publishers WoodWing offers scalable organization BDZV calls the plans “a play with fire”. Wolff editorial workflow solutions, a pointed to Switzerland, where it was ‘demonstrated’ that perfect fit for any Free Daily. We “free papers are the worse enemies of newspapers.” In call it ‘Smart Publishing’. Switzerland - with seven free newspapers - the drop in http://www.woodwing.com paid circulation, however, was less than in Germany. FDN Newsletter no. 36 – July 2008 – page 1 of 6 LAUNCHES OBITUARIES Buenos Aires: El Argentino TU closed instead of daily Since Monday 22 July, the Argentine capital Buenos Aires Free Uruguay weekly Tiempo Uruguayo (TU), launched in has two free dailies. The new free daily by Sergio December 2005, closed down. Last year the paper moved Szpolski, is called El Argentino, and not La Mañana, as to a twice a week schedule and planned to go daily later was suggested before. Initial circulation is 250,000. in 2007. Szpolski also owns the Spanish version of Newsweek, Lack of sufficient advertising, however, made the owners Buenos Aires Económico, Veintitrés, and Siete Días. decide that after two years the paper had to be terminated. Five people lost their job. The afternoon paper To counter the new paper, incumbent free afternoon daily counted 20 pages and was distributed in universities, bus La Razon, published by the Clarin group, launched a terminals, shopping centers, ports and airports. morning edition as well. The ‘Mañana’ edition of La Razon is distributed in 100,000 copies. MediaMatin not dead yet Although an agreement has been reached between the The organization of distributors of paid papers and labor union and the management of Quebecor concerning magazines has already protested against the new paper the locked-out staff at Le Journal de Québec, the free because it would hurt the income of the distributors. The daily published by the strikers, MédiaMatinQuébec, will be protesters had a clash with the police when they wanted around for “some weeks” at least. to block distribution. It could be the end of the 15 month labor conflict and lock- Sunday Examiner out at Le Journal de Quebec. The newspaper reported The new Sunday edition of free daily The Examiner (San that as long as the locked-out workers have not been Francisco, Baltimore, Washington) was launched July 13. reinstalled in their positions, the paper will continue. The paper is available in racks and boxes and is home- delivered as well. PLANS The Sunday edition replaces the Saturday Examiner LA free daily edition. Apart from Sunday, Clyde Davis reports a free daily is about to be launched in also the Thursday edition LA according to the ad for staff in Craigslist. The paper will be home-delivered. All will distribute between “200,000 and 350,000 daily M-F, other days the paper will be no Saturday edition and a 500,000 circulation Sunday available in racks and edition which will be available nationally”. boxes. The local edition for the San Mateo County (San Francisco edition) will be CIRCULATION closed. Top 10 Northern American frees The paper prints 835,000 Editorsweblog published the top 10 of paid and free copies on Sundays, 735,000 on Thursday and only newspapers from the 2007 publication World Press 230,000 on Monday-Wednesday and Friday. In Trends. Their no. 1 position is occupied by the Canadian Washington average circulation is 155,000, in Baltimore Metro with 990,000 daily copies although the paper itself 132,000 and in San Francisco 128,000. (Denver Business claimed a circulation of at least 200,000 lower. Journal) The circulation for Quebecor’s 24 hours/heures on the These figures mean that the circulation of Philip Anschutz’ other hand seems to be too low: it’s 705,000 instead of paper has gone down dramatically. Before the switch the 240,000 (that would be the circulation of the Toronto paper distributed more than 700,000 copies daily, edition only). My list, therefore, is different. meaning a 40% decrease in average circulation. Metro Canada 750,000 Destak in Rio 24 hours/heures Canada 705,000 Two years after the launch in São Paulo, free daily Destak Examiner US 712,000 made its debut in Rio de Janeiro, the second city in Brazil. Metro US 620,000 Destak Rio started with a print run of 80,000. AmNewYork 320,000 HOY (Tribune Co.) 210,000 In São Paulo Destak has a circulation of 150,000 and a RedEye Chicago 200,000 readership of 493,000.