European newspapers search for the way out of the crisis
Thanks to Alain Neuville, ANIMA CEO, for his authorization to publish his toughths when they are related to newspapers. This week, Alain analyzed the situation of the European Newspaper industry:
"There is at least one metric that is broadly shared by a great majority of countries; newspapers readership and circulation slump. Newspaper readership posts -0.6% in Italy. Circulation of national titles dropped by 0.5% in France. Circulation and readership are falling in Ireland. All the data recently released are in the red. The national dailies have been losing readers for some time now. The regional press had remained one of the few positive shelters in the British market. It is no longer the case since the last ABC figures have been released. In light of this difficult situation, publishers have to find new solutions..."
Five rescue strategies
- First is to find fresh cash in order to initiate rescue strategies. This is the case in France with new shareholders for Liberation (Rothschild) and Le Monde (Lagardere, Saint Gobain, Prisa, La Stampa)
- Second is to find new strategic alliances. In the Netherlands, the two major competitors, PCM and Wegener have decided to join in order to fight the dramatic situation of the regional press. PCM will replace De Volkskrant - which is the n?2 title in the market, behind De telegraaf ? with a merger between the Algemene Dagblad and five regional titles.
- Third: to improve the design, i.e. the emerging wave of tabloid format switchovers. The wave has become tidal.
From Switzerland to Norway the smallest local paper is now considering changing its shape. Also new layouts are flourishing. The latest improvement ? and certainly a very effective one, since it will directly involve advertisers ? is the switchover to full color. Just one example, Italian Il Giornale is now implementing all of these changes at the same time.
- Fourth: Try to generate extra revenues from their web sites. New pay-for access is being tried again here and there (Le Parisien in France). But it might be too late.
- Fifth: to develop new promotional and marketing operations. First, it was free gifts. Now discounted pay-for side products are in fashion. It started in Italy with discount classic novels. The wave has now reached Spain (El Pais). Now classic films DVDs (Le Figaro, El Mundo) look fairly successful. It has been reported than a good music CD promotion could increase sales by 10% to 20%. So successful indeed, that now music publishers, bookstores, video rental and sales stores are getting worried. The latest selling promotional item is encyclopedias, as we already mentioned here.
Let?s not forget the non-stop temptation in the British market for price wars.
Renting readers?
Undoubtedly the question that will be raised ? as it has been raised with magazine subscription promotional gifts ? is the real involvement of readers with the medium. Are we not selling DVDs wrapped into a newspaper? ?We do not want to rent readers,? the UK?s Trinity Mirror?s management stated. There is some bravery ? or naivety? ? today, in not being willing to play the price-cutting and promotional offer games?.
A Dutch specialist wondered if one of the reasons for the drop of regional press sales was the fact that many publishers fight on the international news level, in spite of focusing on local life. Maybe there is also a matter of readers? expectations?
Germans have the know-how. Maybe there are cultural reasons and a stronger involvement of German readers. But now we know the recipe can be exported, since German publishers have multiplied success stories in Central Europe. Now the time has come for looking westward. Axel Springer, confident over the success of Fakt in Poland, announced it was considering launching a tabloid either in Spain, Italy, France or the Nordics. Bravery or naivety?
By considering only readership and circulation declines, one could lose sight of the real strength of the medium.
Commenting on the results of the readership survey of the regional press, the French syndicate of regional publishers (SPQR) underlined the point that 36.9% of the French population over 15+, read at least one title of the regional press each day, which comes to about 21 million. It points out that the best TV audience in 2004 was the football match between Switzerland-France; it reached only 15.3 million viewers. Convincing enough.
? Alain NEUVILLE (with the highly appreciated help and re-writing from Robert RICHER)
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The solution has to be for newspapers to focus on providing quality journalism, editorial and analysis. Attention to genuinely fair and balanced reporting and analysis will make the newspapers more valuable to consumers than online content - until the online players have the capacity to deliver this as well.
Giveaways demonstrate disrespect for consumers as do price wars. This challenge is not about such things.
There's mistake in the 'rescue' strategies part: De Volkskrant is not involved in the Dutch plans. And in general it is very doubtful that these strategies rescue anything: foreign & non-paper investors who will want their money back with interst within a few years? Mergers which result in sacking journalists and losing readers? Full colour & re-desing which has been going on for years? Paid-for internet sites which will result in lower online readership? Giving away CDs and selling cheap books? Price wars? Where's the rescue? What is recued?