Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

News Corp continues with the masthead discount

Mark Fletcher
July 6th, 2018 · 5 Comments

Earlier this week it was the turn of the Gold Coast Bulletin to pitch the $1.00 a day home delivery offer on to the masthead of the newspaper they have retailers selling in-store for $1.70. They take a product they claim is worth $1.70, add expensive personal home delivery and discount it by 41%.  The discount is at a level that sounds too good to be true.

Desperate times I guess…

I get that subscriptions play a vital role in the newspaper revenue  model. However, why they are not 100% focussed on digital only subscriptions is the surprise, as that is the future for news delivery. I think they could do that pitch without this apparent trashing of the over the counter newspaper purchase.

News Corp. will do what it sees as appropriate for its business. Their intensifying of home delivery discounting should get retail newsagents thinking carefully about the role of newspapers in their businesses. I know of newsagents who have quit the category without detriment.

9 likes

Category: Newspaper distribution · newspaper home delivery · Ugh!

5 responses so far ↓

  • 1 Graeme Day // Jul 6, 2018 at 7:00 AM

    Yes it is deperate times for the distribution of the printed copy it particulary effects those newsagents whose delivery income subsidises their shop trade. Once they lose the distribution as could happen with the proposed “new Secondary Distribution Model called the “project” currently being examined in NSW, they will lose everthing.
    it is already affecting newsagents in my area as it is one of the major areas selected
    Let’s hope that some good will prevail.

    2 likes

  • 2 Jason // Jul 8, 2018 at 12:39 PM

    The amusing part of all this is that the advice you’re giving to newsagents about exiting print and the plan News are following are pretty much the same thing…

    “Acting now looks like this:

    Placing newspapers in a lower cost location, away from the entrance and high value real-estate.

    Sourcing new product categories that you do not carry today.

    Pitching the new categories in marketing outside the business.

    Getting the business known as a destination for multiple sought-after categories in your area, categories people would drive at least an hour to shop and purchase.

    Spending less time on what is declining and more time on what could be.

    Doing everything possible to ensure your business does not look traditional”

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  • 3 Mark Fletcher // Jul 8, 2018 at 1:16 PM

    Jason I have made that exact point many times. News em doing what I would do if I were them and, yes, we have to reduce the cost of papers on our businesses and run businesses to survive without papers. However, I am not disrespecting News they way they do retail newsagents.

    BTW, what I write here is suggestions / advice. Not mandatory. Newsagents should do what is right for their situation.

    2 likes

  • 4 Jason // Jul 8, 2018 at 7:10 PM

    “However, I am not disrespecting News they way they do retail newsagents” is how you see it… Just as News wouldn’t see what they’re doing as disrespecting newsagents either.

    You know better than to look at this offer and oversimplify it into working out a % discount and saying it’s “Too good to be true”.
    Locking a subscriber into regular delivery on a 6 month offer (renewing monthly) even if they’re paying half the price of retail is still much better than a casual retail sale (if they happened to actually buy it every day, which isn’t at all likely)

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  • 5 Mark Fletcher // Jul 8, 2018 at 8:08 PM

    Jason my post is about disrespect for retail newsagents saying on product we sell – don’t buy it here any more. That’s disrespectful.

    In one of my shops, 70% of the newspaper customers are daily paper shoppers. The publisher wants to take them from us. Which, of course, is their right. It’s also my right to cut it off early.

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