The decline continues

Loafing Oaf · 26-06-2017 6:40pm

IRE60 wrote: »

The idea of "media plurality" sometimes has to be looked at in terms of the commercial realities.

That's what I always think when I hear people complaining about Denis O'Brien's ownership of Newstalk...

IRE60 · 27-06-2017 12:33pm

Loafing Oaf wrote: »

That's what I always think when I hear people complaining about Denis O'Brien's ownership of Newstalk...

I think the Newstalk story has a bit to go yet and we'll see how detached the Indo and Newstalk are in reality.
The Indo CEO and another Indo employee are currently under the 'protection' of the ODCE.

JTMan · 29-06-2017 6:57pm

A liquidator has been appointed to Wexford Echo Limited. Wexford Echo Limited are owned by Landmark Media Investments. Wexford Echo Limited publish Wexford Echo, Gorey Echo, New Ross Echo and the Enniscorthy Echo. Wexford Echo Limited also sub-edit The Waterford News & Star, Carlow Nationalist, Kildare Nationalist and the Laois Nationalist. https://www.rte.ie/news/leinster/2017/0629/886586-liquidator-echo/

IRE60 · 04-07-2017 1:52pm

I see there may be a bit of light in that tunnel.

Datascope, printers in Enniscorthy, are eyeing up the four papers as a going concern.

I'm not sure if they have any of the contracts to print any of the four publications already.

edit: I don't think they do currently print them. There's a possibility that the four papers, because of their background and belonging to Landmark, may be up on the WebPrint press on Cork. That press/company was recently purchased by the Business Post. While the Wexford papers would not be the highest volume in the world, it would still be a decent enough contract to WebPrint which they might lose if Datascope got it.

It's swings and roundabouts these days.

It could really be a bad year for the regional’s.

JTMan · 04-07-2017 5:44pm

The Irish Times prints all Landmark Media Investments titles as per this article.

Good news that Datascope are potentially going to acquire the 4 titles. Apparently, there are now 3 suitors out there for the remainder of the Landmark Media Investments titles.

IRE60 · 04-07-2017 6:36pm

Are the rest of the titles up for grabs? Radio and web?

JTMan · 04-07-2017 6:42pm

IRE60 wrote: »

Are the rest of the titles up for grabs? Radio and web?

Titles, yes. Radio and web, largely no or so it seems.

- All newspaper titles are up for grabs according to media report.
- There has been zero media reports that their 3 radio interests are for sale.
- Given that Breakingnews.ie just copy and paste articles from the Irish Examiner, I don't see how the 2 can be separated easily. Don't know who would be interested in the small RecruitIreland.com nor Benchwarmers.ie.

JTMan · 19-07-2017 7:40pm

Independent News & Media (INM) issues profit warning 'driven by ongoing challenges'

http://www.independent.ie/business/media/independent-news-media-inm-issues-profit-warning-driven-by-ongoing-challenges-35947825.html

INM said continued publishing advertising decline and lower than expected growth in digital revenues means total advertising is forecast to decline by around 7pc year on year. Circulation continues to decline at 7pc year on year.

IRE60 · 20-07-2017 10:59am

More detail in their trading statement

http://otp.investis.com/clients/uk/inmp/rns/regulatory-story.aspx?newsid=893161&cid=29

Reduction in print advertising by 12%

No massive rise in digital meaning meaning that overall advertising is back 7%.

A decline in circulation and readership* - Circulation down 7%

Newspread doing nicely

Increase in the provision for the potential downside of legacy liable cases

“costs associated with the Independent Review and meeting the requirements of the Office of the Director of Corporate Enforcement”

Digital growth much slower than envisaged. Invest in programmatic and a VJ with ShinAwil

“readership” : the last Irish Newspaper readership report , that was published, covered from Mid 2014 to mid 2015 – difficult to lean on the readership issue if you’re not measuring it

expectationlost · 25-07-2017 1:11pm

Independent Broadcasting Bill will strengthen viability of local media https://www.fiannafail.ie/independent-broadcasting-bill-will-strengthen-viability-of-local-media/

“Creating original news content is quite expensive, and the lack of funding for independent and local stations often makes it impossible for them to do so. This means that local communities miss out on content that is specific and important to their locality, such as coverage of local sports events or history programmes with a local twist.

He added, “For democracy to properly function, it is essential that our citizens can access honest, unbiased news coverage of the events that matter to them.
“The Public Service Broadcast Scheme will be funded by the increased revenue that will come from a reduction in license fee evasion, ensuring that no other organisation will experience funding cuts as a result of the establishment of this fund.

what has local sports content and history shows got to do with news and democracy? (and when they talk of Indepdent Radio they talking newstalks and today fm too not just smaller stations)

Never much of radio listener, does anyone listen to their local radio station to keep informed? ( I see Nearfm does citizen info stuff, worthy Im sure but not exactly "news".)

Now that more stations podcast I listen a bit more often to segments, I follow the radio Northside today show rss2email but there is rarely anything worth listening to.

I find it painful to listen to poor radio/interviews. There is presenter who does that Dublin politics coverage who is just awful.

Why does democracy require usually awful local radio? (partly to do with the different treatment of broadcasting TV/radio and print)? Dublin Inquirer is doing better job then any loca radio station afaik, and I prefer reading things, even transcipts of radio/tv so I get search for the exact bit of info I want).

state from IBI http://radiotoday.ie/2017/07/ibi-welcomes-independent-radio-stations-bill/

IRE60 · 31-07-2017 6:41pm

Interesting article here from an indo statement
http://m.independent.ie/business/media/inm-warns-of-job-losses-unless-there-is-consolidation-in-the-sector-35984227.html

Plus a article on Trinity Mirror results for the first half -
http://www.pressgazette.co.uk/trinity-mirrors-half-year-revenue-down-55m-as-print-advertising-drops-27-per-cent/?utm_medium=email&utm_campaign=2017-07-31&utm_source=Press+Gazette+Daily+new+layout

JTMan · 01-08-2017 8:44pm

Are all these announcements and comments from INM buttering us up for some big announcement? We cannot be a million miles away from The Irish Daily Star, Sunday World, Herald and some of the INM regionals say adios.

Yesterday37 · 01-08-2017 8:57pm

I'm not surprised. I stopped buying newspapers because I was fed up with the constant whinging and moaning and we're a disgrace as a nation lark. Enough of the misery give us solutions.

JTMan · 06-08-2017 7:10am

Celtic Media really are in trouble.

The Sunday Times reports here "Celtic Media said it was reliant on short-term bank funding and had to sell a property in Cavan to generate funds as the review of the INM takeover dragged on. In February, it suspended publishing of Your Forum, a freesheet in Meath."

JTMan · 13-08-2017 7:17am

Job cuts on the way at INM. More here.

Harry Palmr · 13-08-2017 9:56am

It's always the editorial staff who get it in the neck, they are the backbone of a newspaper. The Indo/Sindo titles are already overwhelmed with piecework opinion and bought in material. How do you develop beyond that with a skeleton new desk.

The good news is that a reprint of Bunty from 1972 is in todays edition. That'll have copies flying out the door.

http://cdn-02.independent.ie/incoming/article36023150.ece/ALTERNATES/h342/Cover.jpg

IRE60 · 13-08-2017 3:31pm

It’s a bit of a no story really, it’s simply rehashing they same yarn that Marshall was removed as an independent director etc.

Like many of the stories emanating from the indo, the only titles mentioned are the Irish/Sunday Indo, Sunday World and the Herald – rarely mentioned anymore is The Star.

You could be excused in thinking that IN&M are preparing to jettison the title at some point in the near future and let the Herald (and the soft underside of the Indo) pick over the carcass of the 50,000 odd Daily Star sales.

The ABC’s for the first half of 2017 are out on Thursday. I’d suggest, like the monthly ABC titles, a 7% decrease in the market. Some figures will flatter to deceive if they are taken at face value of you don’t look at the bulks.

Harry Palmr · 13-08-2017 3:36pm

Not sure the Star can be classified as a newspaper!

IRE60 · 17-08-2017 2:09pm

ABC for January June 2017 were released earlier today. Morning -9% Sunday -8%. No good news as usual.

Loafing Oaf · 17-08-2017 4:38pm

IRE60 wrote: »

ABC for January June 2017 were released earlier today. Morning -9% Sunday -8%. No good news as usual.

Particularly grim from the indigenous dailies, or dailies with significant Irish content so we can include the Mail. Herald down 11%, surely a merger with the Indo or the Star must be on the cards...

IRE60 · 17-08-2017 4:51pm

As I said previously: I'd be of the impression they want rid of the star, make more room for their own title (EH) in the morning. Herald simply doesn't match the sports in the star

JTMan · 17-08-2017 5:44pm

Great analysis of the ABC numbers on ilevel here. Total disaster, the sinking ship continues into the terminal decline sunset.

As I said previously: I'd be of the impression they want rid of the star, make more room for their own title (EH) in the morning.

As I said previously, I think Dirty Desmond, who is getting dividends from Independent Star, will bleed every last penny out of Independent Star before closure. As long as Independent Star can keep its head above water the show will continue. As at 31 December 2015, the operation was still profitable. The 2016 accounts should be out next month. Also, if Independent Star closes then Newspread will take a big hit to distribution income which INM will seek to avoid for as long as possible.

bogmanfan · 17-08-2017 6:43pm

The Herald recently abandoned their City Final edition with racing declarations which was the one advantage they had over the other titles. Expect their circulation decline to accelerate even faster over the next few months.

IRE60 · 17-08-2017 7:31pm

bogmanfan - can you get declarations online?

JTMan · 18-08-2017 6:41am

The Irish Times take on the ABC numbers is here. Interesting that the withdrawal of the Irish Times from Britain occurred.

L1011 · 18-08-2017 9:49am

I wonder how many of the ePaper subscribers are getting it free as part of the app+Saturday delivery package. I've never even looked at the ePaper version as I basically see the sub as a cheap way of getting the archives

bogmanfan · 18-08-2017 5:14pm

IRE60 wrote: »

bogmanfan - can you get declarations online?

I'm not sure to be honest. I know nothing about racing, but I remember when the Herald trialled a scheme a number of years ago where they held the City Edition back from a few areas in Dublin to see if there would be any backlash. The number of phone calls was so huge they abandoned the plan after one day. I have heard that they are getting a similar reaction over the last few weeks.

Obviously there was a distribution and printing cost associated with the City edition, but it's worrying if they feel that the sales couldn't justify that cost. Hard to see any place in the market for the Herald now, unless they just make it a freesheet like the old Herald AM.

IRE60 · 18-08-2017 5:22pm

bogmanfan wrote: »

Herald AM.

AHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!

JTMan · 18-08-2017 5:44pm

bogmanfan wrote: »

Hard to see any place in the market for the Herald now, unless they just make it a freesheet like the old Herald AM.

The freesheet model is a proven failure in the Irish market. The Herald will not go free any time soon.

The role of the Herald, The Irish Daily Star and Sunday World is a wind-down milking-the-last-juice-out-of-an-orange role.

Staff and publication costs are being cut all over the place to keep these publications profitable for group and delivering distribution income to Newsspread.

As soon as variable costs have been cut as far as they can, and the publications become unprofitable, and the opportunity cost of maintaining the publication for cross group distribution income exceeds the cost, they will all shut.

We are definitely inside the last few years of these publications.

Loafing Oaf · 18-08-2017 7:20pm

JTMan wrote: »

The freesheet model is a proven failure in the Irish market. The Herald will not go free any time soon.

The role of the Herald, The Irish Daily Star and Sunday World is a wind-down milking-the-last-juice-out-of-an-orange role.

Staff and publication costs are being cut all over the place to keep these publications profitable for group and delivering distribution income to Newsspread.

As soon as variable costs have been cut as far as they can, and the publications become unprofitable, and the opportunity cost of maintaining the publication for cross group distribution income exceeds the cost, they will all shut.

We are definitely inside the last few years of these publications.

Plus it's hard to imagine anyone wanting to keep any of these publications alive for idealistic reasons unlike, perhaps, the Irish Times or The Guardian.

Are the tabloids making any headway in monetising their online offerings I wonder.

IRE60 · 18-08-2017 7:34pm

Loafing Oaf wrote: »

Plus it's hard to imagine anyone wanting to keep any of these publications alive for idealistic reasons unlike, perhaps, the Irish Times or The Guardian.

Are the tabloids making any headway in monetising their online offerings I wonder.

Uk experience is that tabloids don't really transfer to the digital platform too well. They tend to have to supplement their offering - the Sun on bingo and fantasy football for example. The titles/newsbrands that do well are the ones who generate unique content - FT, Economist etc and they have a huge footprint across a variety of social platform to support their own offering.

The tabloids offer 'snacks' whereas other, progressing, titles offer something more substantial.

Touching on some of the previous comments:

Herald - used to make a killing on a Saturday with the 'pink edition' but now the city final is redundant with technology.

I can safely say you can give out 120k to 150k papers in Dublin free. However - there is the cost of printing and compiling them, the pressure from the council and a lack motivation from advertisers that make it a busted flush

IRE60 · 18-08-2017 7:42pm

I may have to eat a select few words - was just about to read this and added the post first

http://www.ukom.uk.net/news/18-24s-and-traditional-news-brands

The PDF gives the state of play in digital - The sun is doing well!

Mutant z · 18-08-2017 7:45pm

Print media is on the way out, the future is online.

L1011 · 18-08-2017 9:48pm

The Herald has been trialling a free sheet on and off for months. Herald Go it's called

JTMan · 19-08-2017 8:51am

Interesting. I can see that INM trademarked Herald Go in December 2016. The trademark would probably have only come through recently. Where did you see the Herald Go newspaper?

L1011 · 19-08-2017 12:30pm

Being handed out at luas stops a few different days. Always in too much of a hurry to get one though

First was April or May

JTMan · 19-08-2017 2:03pm

The firm behind Swords' North County Leader newspaper is calling in the liquidator. More here.

Still not buyer for the Wexford Echo titles. More here.

IRE60 · 19-08-2017 3:50pm

I'm a fan of Gaelic Football and will be keeping a close eye on tomorrows game between Kerry and 1951 I mean Mayo.

So today the Indo get ex-Kerry player Tomás Ó Sé to do an article on the Game and what he expects.

They back this up by getting Tomás to do a radio ad (his own VO) telling the listeners about the column and what other sports related stories where in the paper today.

They take advertising on RTE1 all morning (not cheap) and the ad is repeated in nearly every time slot.

I won't hazard a guess as to the total cost - but definitely into the thousands.

However, I read the column online this morning - unaware that the Indo were going to do all that marketing - but for what!

IRE60 · 23-08-2017 11:38am

Indo profits down to 8% to 148m

Revenue down 8% - distribution revenue down 9%, advertising down 8%.

Digital “grown at a lower rate than previously envisaged” – yield impacted by a “move away from direct transactional selling” – so, not the same bang for your buck with programmatic.

Liable costs rearing their ugly head – “particularly those relating to historic Sunday World “ – if memory serves there one like a revolving door going back nearly a decade where it’s been won/lost/won etc – sums are big.

L1011 · 23-08-2017 3:56pm

IRE60 wrote: »

Liable costs rearing their ugly head – “particularly those relating to historic Sunday World “ – if memory serves there one like a revolving door going back nearly a decade where it’s been won/lost/won etc – sums are big.

Last year there was a particularly hefty number including some settlements, possibly to get rid of legacy issues.

JTMan · 23-08-2017 5:30pm

I hate misleading sentences like this one from RTE: "Ad revenue in its printed publications was down 10.9% but that was partially offset by digital advertising revenue growth of 6.3%." What is missing is stating that digital growth is from a much lower base. RTE give the false impression that the 6.3% negates the 10.9% when actually it only negates about 0.5% of the 10.9%.

Shocking that digital growth has gone to a standstill.

Also shocking that distribution was down 8%. I know that is in line with newspaper circulation declines but Newsspread was supposed to be diversifying their distribution income and previously seemed to be succeeding.

Despite being a sunset industry, it is still highly profitable for now. INM might have another decade left.

IRE60 · 23-08-2017 5:39pm

No joke: a shareholder at todays AGM complained about internal company disputes being leaked to the media, saying that it was “very hurtful”.
The shareholder said that the board needed happiness and that they should consider hiring a clown as a director.

IRE60 · 23-08-2017 5:39pm

Doubled above

IRE60 · 30-08-2017 6:50pm

The NI division is going through the ringer. RoI been down that route.

http://www.pressgazette.co.uk/johnston-press-to-restructure-northern-ireland-weekly-news-operation-with-loss-of-eight-fte-editorial-staff/

JTMan · 08-09-2017 3:15pm

Trinity Mirror are engaged in advanced talks to purchase 100% of Richard Desmond's Northern & Shell who publish The Daily Star, the Express, Ok Magazine and own 50% of Independent Star who publish the Irish Daily Star.

More here. One wonder if Trinity Mirror will retain the 50% stake with INM post acquisition.

IRE60 · 08-09-2017 4:21pm

Interesting Times!

From the press Gazette:

Trinity Mirror has confirmed that it is in talks to buy the Express and Star newspaper titles as well as magazines including OK from Richard Desmond.

The company issued a statement indicating that it had broken off discussions around a joint venture to share sales and back office operations at the two companies.

Instead the publisher of the Daily Mirror newspaper has confirmed talks are under way to acquire 100 per cent of Northern and Shell.

Trinity Mirror previously held discussions about acquiring some of Richard Desmond’s titles in early 2015.

But the talks came to nothing and were ended in typically forthright style by Desmond in December of that year that he said he was irritated by what he saw as the “Mirror Group’s using his name and prolonging the idea of a deal perhaps as a cheap means of shoring up their share price”.

It said he that he had his “own plans for the future of Northern and Shell” and added: “I would prefer it if the Mirror boss Fox off.” Trinity Mirror’s chief executive is Simon Fox.

Trinity Mirror instead bought regional press group Local World in a £220m deal, since then making drastic editorial cutbacks across the board at its titles.

Trinity Mirror said today: “Further to the announcement made on 10 January 2017 the Board of Trinity Mirror plc notes that it is now in discussions to acquire 100 per cent of the publishing assets of Northern & Shell and that it has ceased discussions to acquire a minority stake in a new company comprising the publishing assets of Northern & Shell.

“There is no certainty that any transaction will be agreed or completed. Any acquisition would require the approval of Trinity Mirror shareholders.

“A further announcement will be made when appropriate.”

Trinity Mirror is already the largest regional newspaper publisher in the UK by some margin.

Trinity Mirror’s existing daily national title the Daily Mirror has a circulation of 625,278. Desmond’s Daily Express sells 380,632 and the Daily Star sells 421,812.

The combined circulation of the three titles would still place them just behind The Sun’s 1,568,250.

Associated Newspapers’ Metro and Mail titles have a combined daily circulation of nearly 3m.

Desmond paid £125m for the Express titles in 2000.

JTMan · 10-09-2017 9:46am

Good Media Guardian article on the demise of local newspapers here.

And so, over the past few days and weeks, we say goodbye to the Oldham Evening Chronicle, to the Canterbury Times, the Enfield Advertiser and Gazette, the Barnet Press, the Newmarket News, the Kensington and Chelsea News. Plus numerous other editions and titles serving Britain from Saddleworth to Whitstable, from the Wirral to Cleethorpes.

Count the number of journalists working on local news: it’s halved over the last 10 years. Count the number of titles gone: 300, heading for 400 fast. Almost a score gone this summer.

L1011 · 11-09-2017 7:27pm

JTMan wrote: »

One wonder if Trinity Mirror will retain the 50% stake with INM post acquisition.

Desmond made lots of noises about exiting that venture due to Kategate. He didn't. But did he actually try?

If he couldn't flog the stake in a fire sale I could see INM wanting a dowry to even take it off Trinity's hands.

JTMan · 11-09-2017 7:38pm

L1011 wrote: »

Desmond made lots of noises about exiting that venture due to Kategate. He didn't. But did he actually try?

Apparently, Desmond had blistering rows with INM at the time. He was appeased by the fact that INM would take full operational responsibility for The Irish Daily Star and he would keep getting his dividends. (He's got to be the only person in the Irish newspaper industry who gets dividends!)

JTMan · 13-09-2017 12:51pm

The 2016 accounts for Independent Star, who publish The Irish Daily Star, is available on the CRO website.

Independent Star is 50% owned by INM and 50% owned by Northern & Shell who are owned by Richard Desmond.

The accounts are a fascinating read. Interesting to see how a newspaper group keeps its head above water despite the tide coming in.

- Turnover down from 20.2m to 18.8m.
- Profit down from 1.9m to 1.7m.
- Dividends up from 1.6m to 2.0m.

How on earth was profit and dividends maintained? Here's how:
- Staff cut from 57 to 56.
- Exceptional expenses (redundancies etc) down from 0.2m to zero.
- Staff costs (wages etc) down from 4.6m to 4.3m.
- Distribution & printing costs cut from 5.8m to 5.5m.
- Depreciation down from 0.2m to 0.1m.
- Other cost of sales savings. Cost of sales down from 12.5m to 11.3m.

Also of note:
- Cash in the bank down from 1.9m to 1.7m.
- Directors prepared 12 month cash flow statements for 2017 to prove going concern.
- Legal liable provision up from 0.9m to 1.0m.
- N&S were paid 0.4m for content.
- INM paid Independent Star for content.

Nutshell:
- Revenue continues to fall significantly.
- Costs cut significantly again.
- Desmond and INM are continuing the bleed the operation dry via cuts and big dividends.
- Limit to how much further costs can be cut and the inevitable will happen but INM won't want to say goodbye to Independent Star just yet. They are getting 5m for distribution & printing, 1m in dividends, the operation is still profitable and they get necessary content from Independent Star.

The decline continues

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