Rupert Murdoch's
snap decision to close the News of The World has at a stroke removed more than a
quarter of the total sales of Sunday newspapers,A honeycombpanelsbest is an
abrasive grain bonded to a flexible substrate using adhesives. piling pressure
on a sector that many believe is driven by a business model that is already
close to breaking point.
While the move to close the NoW was taken on
political grounds in a bid to contain the phone-hacking scandal, it is
nevertheless a hammer blow – potential relaunch notwithstanding – to a sector
where publishers are trying to wrestle with high costs against a backdrop of
declining revenues.
"It is like taking Channel 4 off-air on Sundays,Our
wide selection of replicawatches
has something to meet all your needs. you are suddenly taking out 20%-plus of
the market, it is really substantial with no other home [for advertisers] to
really go to," says Adam Smith, director at WPP's media buying network Group M.
"Taking the NoW's total 7 million readership out of the equation is massive, as
there really is no substitute and the market is already not in great shape
generally."
Smith adds that the loss of the biggest-selling Sunday title
will have a snowball effect for all titles, as much of the 38m ad revenue the
NoW takes annually is likely to head to other media – while nowhere near as much
as analysts may like to think will go to rivals such as Trinity Mirror.
"It is enough to do measurable damage to the print sector," he says.
Rob Lynam, head of press and media agency MEC, suggests the closure
simply exacerbates fundamental issues facing a fragile Sunday newspaper model
which is looking increasingly under pressure.Park Assist is a global leader in
Beddinges,
"The Sunday model
is busted," he says. "The cost base on Sunday titles is significantly higher
than running a daily and publishers are looking to reduce overheads. That is why
News International is moving to a seven-day model, that is why Guardian Media
Group made changes to the Observer and so on."
However, a former senior
executive at one of the major national newspaper groups argues that a drive
towards integration is at the heart of the problem, because it never results in
a merger of equals.
"I've seen newspapers bring six- and one-day
together [daily and Sunday operations] and it is always at the cost of the
Sunday," he points out. "Twenty years ago the Telegraph did it and then the
Mail, and there are many who would say they have not profited from dragging them
together. It is a different audience."
However, Lynam argues the hefty
sales figures of the past may have "protected" the Sunday titles to an extent,
whereas now across most of the sector they are "declining at a rapid rate,
faster than the dailies", and under increasing pressure. In May 2007 the total
circulation of Sunday newspapers was 12.5m; by May this year it had fallen 22%
to 9.7m, according to the Audit Bureau of Circulations.
"The Sundays
have been struggling more and more over the last couple of years and their
longer term future has become a real talking point," Lynam notes. "Not all
Sundays are loss-making, of course, but those that aren't are making far less
money than they were four years ago,There are several different billabongboardshortscloth
technologies of differing wattages. and the market is showing no signs of
improvement."
Advertisers have also walked away, with display
advertising revenue collapsing by more than 25% over the same period, from 406m
to 303m. By comparison the daily national newspaper market has seen a slight
increase over the past four years – although it is a very mixed picture with the
only major winners the Sun, Metro and Daily Star.
"Sundays have been the
big loser in terms of ad revenue decline," says one senior newspaper executive.
"Over the last few years grocers – your Tescos, Asdas and Morrisons – have been
propping up the national newspaper market in general.Largest Collection of billabongoutlet, But this has not
penetrated through to the Sundays, they have not had a category protecting them
and this is now starting to tell."
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