Tag Archives: news international

ALL SHOOK UP

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It’s now been almost six weeks since the dramatic implosion of the News of the World following the fallout of the phone hacking scandal. However it’s only now, with the release of July’s ABC figures, that the impact of the demise of Sunday’s largest selling newspaper can be properly gauged. With 2.7m potential readers up for grabs, the challengers have launched a frantic flurry of price cuts and promotions but who has succeeded in wooing the orphaned NotW readers?

Unsurprisingly, the lion’s share stuck to what they knew and switched to an alternative tabloid. The remaining Sunday red tops were rejuvenated with an average net circulation increase of 66% last month. The Daily Star on Sunday fared the best with an additional 400,000 additional copy sales in the three weeks following the NotW’s closure – a 130% period-on-period (PoP) increase; its highest circulation since 2002. (Elsewhere, however, it’s daily equivalent had the biggest year-on-year (YoY) decline in July, down 16%.) Other tabloid stablemates that profited from the market shake up were the Sunday Mirror and The People, up 64% and 70% PoP respectively.

While most didn’t stray too far from the tabloid sector, some more adventurous readers braved mid-market territory with the circulations of the Sunday Express up 14% and the Mail on Sunday up 15%. With a circulation now at 2,255,399, MoS is still Britain’s biggest selling Sunday title by a significant margin. This has no doubt been helped by the recent launch of the Mail Rewards Club, a weekend-centric loyalty scheme offering free vouchers and nice freebies, that the Mail has been promoting.

At the top end of the market, there were also strong performances for some of the quality Sundays – no doubt a combination of a few ex-NotW readers experimenting, coupled with a general spike in news interest to follow the hacking scandal itself.

Bucking the upward trend though was The Sunday Times, which limped out of the ABCs with a 1% decrease, the only Sunday title that failed to gain new readers during the period and the first it has dropped below 1m since 1962, as readers question whether they want to support any News International title at all. Conversely, the Sun readers remained loyal as it continued to be the biggest daily publication with a circulation of 2.8m.

All in all, with so many switching allegiances and trying new titles, there were some who clearly could not plug the gaping hole left by the NotW in their lives. The overall Sunday market is down 8.6% PoP. Is there a future home for them? Or have they simply turned their back on Sunday newspapers? And will those who have picked up a different paper stick around once the price reductions and freebies disappear? What’s Hot will keep you informed as and when this becomes clear.

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Posted by the7stars

Testing Times

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What’s HOT has been following the Times paywall story with much interest. So far, News International has not revealed any information about traffic on its sites since the paywall was introduced or how much money it was generating, but ComScore data suggests that traffic has fallen by 27% since June and 42% since May (the pre-pay wall drop could be explained by all visitors being required to register for access to the site though they did not yet have to pay). This is considerable but the new figures are fuelling then debate.

In the search for a new revenue model, strategists at the Times have decided there is a better future in serving a small select audience of dedicated paying customers and providing a quality demographic to advertisers than a mass of passers-by. This strategy has worked for the FT.com and Murdoch’s Wall Street Journal (1.1m paying subscribers) but will this translate to non-business critical news?

Conversely to the Times, the Guardian remains outspoken in its commitment to retaining free content and even welcomed former Times online readers in a post-paywall article. It believes there is (or will be) value in a large number of people choosing to use Guardian content world-wide. How they monetise this broad brand approach is yet to be seen.

Clay Shirky notes: “When we talk about newspapers, we talk about them being critical for informing the public; we never say they’re critical for informing their customers. We assume that the value of the news ramifies outwards from the readership to society as a whole. But what Murdoch is signing up to do is to prevent that value from escaping. He wants to only inform his customers, he doesn’t want his stories to be shared and circulated widely. In fact, his ability to charge for the paywall is going to come down to his ability to lock the public out of the conversation convened by the Times.”

Blogger Malcolm Coles refers to the comparative sociability of the two sites post-paywall noting that for two similar stories posted at the same time the Times had 4 comments in 2 hours whilst the Guardian achieved 117 comments in 90 minutes.  Wikipedia founder Jimmy Wales claimed the paywall had made the Times “irrelevant” with stories that cannot be tweeting or picked up by blogs; and is practically invisible on Google.

News International clearly recognise the importance of social media and as such are launching a social media campaign designed to recruit new readers online imminently.  They will hope to learn from this approach before they send the Sun and News of the World behind the paywall at the end of November.

What’s HOT looks forward to bringing you an update next month…

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Posted by the7stars