Can A Metropolitan PM Stem Circulation Losses And Grow The Business Using What It Admits Is A “Radical” Solution By Giving Itself Away Downtown But Continuing To Be A Paid-For Elsewhere?

In its heyday, the newspaper’s circulation was more than 500,000, but today it is about 134,000, according to the latest ABC June to December 2005, down 7.2% over the same period the year before. With sales in the city center accounting for only about 7,000 copies the idea is to sacrifice those and instead give away some 50,000 copies, hoping to boost total circulation to around 180,000 which would give it the highest regional newspaper circulation in the country.

The question, of course, is how many of those people who will grab the paper downtown for free at work have been paying elsewhere for their copy?

Manchester is the UK’s eighth largest metropolitan area with a population around 400,000. To serve that community under its new marketing strategy the MEN is printing five editions – the three paid-for papers go to print at 11 pm, 8am and 11 am. The first free edition is available in the city center by mid-morning and a second free edition is given away in the afternoon. The plan is to drop the 8 am paid edition by September.

Editor Paul Horrocks believes the current paid-for readership can be maintained and that by the end of the year the combined paid and free circulation will increase to around 200,000. But why do this in the first place? Are things really that bad?

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“We had actually extrapolated our rate of decline and found that by 2025 we wouldn’t have anything left,” Horrocks told the UK Press Gazette trade magazine.

“Nobody can predict this is perfect, and, yes, there are some risks to this whole strategy. But the greater risk is you sit here wringing your hands worrying about the next set of figures. My answer to those who want to knock the strategy is ‘what’s the alternative,’” he asked.

Manchester has about 250,000 commuters daily. The newspaper is now delivering to downtown offices, making them available free at downtown newspaper shops, and giving them out by hand.

Founded in 1868, the newspaper introduced a morning edition 18 months ago and last year introduced MEN Lite, distributing some 10,000 copies to outbound commuters from the city center. “Lite’s readership was young, up market and rarely bought a newspaper,” Horrocks said. "We have proved that their loyal readership exists and we plan to develop this with the enhanced offer of a MEN providing all our readers with the same service of news and information throughout the day.” MEN Lite, therefore, becomes history.

As part of its marketing plan, the newspaper will relaunch in June, adding more color when a new press comes on board. The newspaper is not altering its advertising rates but it will be considered by the ABC to be a free daily newspaper.

MEN is part of the Guardian Media Group’s regional division. Mark Dodson, Its chief executive, explained why the newspaper was turning to such a “radical” distribution going forward. “Evening newspapers have been in full circulation decline for over 40 years,” he said. “The cyclical downturn in this economy, coupled with a structural shift in advertising income (classifieds going to the Internet) has brought the circulation future of the MEN into sharp focus.

“After a long period of reflection, we have decided to use the lessons we have learned from Metro and MEN Lite and take a more radical approach to the problem. We want to take control of our future and believe a part free, part paid MEN is the future for this great newspaper.”

Horrocks added, “This plan has been in the making for six months and it is not a response to anyone (a new weekly full color paid-for competitor hit the streets this week) but a response to the continuing erosion of circulation.”

The trouble with change, of course, is that it doesn’t necessarily come easy. Journalists are now talking about going on strike because of the new working schedules that call for more shifts ending later at 9 pm and 11 pm.

Publishers of other regional newspapers say they will be watching the MEN’s progress to see if this is really a way forward. Interest increased with leaks this month from The Daily Mail and General Trust (DMGT) that its various UK Metro titles will make about a £10 million ($18.5 million) profit this year and that advertising is holding up well, whereas almost all other newspapers are reporting severe advertising drops. The profit works out at about £10 ($18) per reader.

The most profitable UK Metro edition is actually published in Manchester in conjunction with the Guardian Media Group, MEN’s owner. The Manchester Metro has a circulation of around 110,000 and is said to make several million pounds (dollars) profit annually.

Steve Aukland, managing director of the Metro newspapers in the UK (not part of the Swedish Metro chain), said he believes MEN’s move to part paid, part free “will be seen as one of the great turning points in the history of the regional press.

“It gives a great opportunity for real growth in circulation and in advertising revenue for the long-term. It also attracts a new market to regional newspapers which in the future will have a significant impact on the business.”

Manchester Evening News Claims Success with Its Downtown Giveaway - July 24, 2006

Initial results from the Manchester Evening News’ innovative approach to giving away 50,000 copies downtown while still selling the newspapers in the suburbs for 35p are looking positive.

The 50,000 giveaways have turned into 60,000 because of its popularity and while there have been some losses in the suburbs its nothing compared to what they have gained downtown.

“We are now getting to a much higher proportion of younger people; we are hitting more of the crucial 15-44-year-olds,” said editor Paul Horrocks.