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Free paper to shut after ‘most difficult year’ for Rupert Murdoch
Jonathan Prynn, Consumer Business Editor20.08.09
Evening free paper thelondonpaper is to be closed with the loss of 60 jobs, it was announced today.
Rupert Murdoch's News International said it could no longer afford to produce the title because of huge losses and the downturn in advertising.
The title was launched just under three years ago in competition with rival London Lite, which is published by the Evening Standard's minority shareholder DMGT.
Mr Murdoch's son James, chairman and chief executive, Europe and Asia, News Corporation, said: “The performance of the business in a difficult free newspaper sector has fallen short of expectations. We have taken a tough decision that reflects our priorities as a business.”
The title will continue to be published during a 30-day consultation period.
Today's announcement follows a review of News International's UK operations that began early last year. But the first hint that the paper would be axed came in Private Eye magazine yesterday and staff and executives were not told before the announcement.
It has been suggested that News International's new chief executive, former Sun editor Rebekah Wade, is “no fan” of free newspapers.
Thelondonpaper was the first paper launched by News International, whose other titles including The Times, Sunday Times, The Sun and News of the World were all started long before they were acquired by the company.
Last year the free newspaper, which has a circulation of about 500,000, made a loss of £12.9 million on revenues of £14.1 million. Losses this year are believed to be £9.1 million, some £4 million worse than had been budgeted for.
Parent company News Corp recently revealed a net loss of $3.4 billion (£2.1 billion) for 2008/09, compared with a $5.4 billion profit for 2007/08. Chairman and CEO Rupert Murdoch said the year had been “the most difficult in recent history” for the group.
News International is legally obliged to consult staff before formally closing the paper and making redundancies.
One member of staff said: “Nobody saw it coming. In fact the editor laughed off the idea only a few days ago.”
The paper, edited by Stefano Hatfield, is handed out by armies of purple-clad distributors on the streets of central London. It currently holds the contract for evening free distribution at overground railway stations in London.
The launch of thelondonpaper on 4 September 2006 led to a ferocious freesheet distribution war with London Lite. It was aimed at attracting younger readers but never pulled in the advertising revenue that News International had hoped for.
Steve Auckland, managing director of London Lite, said: “It's a sad situation to see any newspaper go under if that's what's going to happen. But it is, as everyone knows, a very competitive market place and nowhere more so than in London.”
Reader views (9)
It never ceased to amaze me how a paper owned by News International could be so left wing
- Name, nah
Sad.
Will I have to say goodbye to Em, the only cartoon that has made me laugh out loud in the tube on occasions?
- Nigel, London
I like LP for its difficult Sudoku and Crossword. Events happening tomorrow is quite handy as well.
- Shalinie Tewarie, London
Is this, as the Eye would have us believe, a way for News Corp to claw back the more profitable revenue streams from the failing Sun, whose circulation thelondonpaper has indeed damaged?
- Tactics, London
Always sad to hear of any newspaper closing, Not thought of drastically cutting costs?, like halving the staff?, and turning off the air conditioning?, they could offer half price advertising?, which could be a boon to struggling businesses at the present time?, and at the same time marry it up with a online edition?, its so easy to give up.
- David Crocket, Bradford, UK.
The streets of London will be a bit tidier...
- Mc, London
Shame it was always a fairly good read.
- Rodders, SWTLand, England
It better not close. It's 'Difficult Sudoku' puzzle is the best offered by any of the papers!
- Phil Jones, London UK
This will surely please the new management of the London Evening Standard following the Standard's relaunch on 11th May
- Donald Smith, London
