News of the World closure piles pressure on commercial sector

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."

Par oilpaintingsupplie le lundi 11 juillet 2011

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