How desperate is the British newspaper industry?
After reading this piece on DVD giveaways in this morning's Guardian, I have to wonder whether the newspaper industry knows that it is speeding its own extinction?
How much are newspapers spending? Licences range from £50,000 per film to £200,000 for top line Oscar-winning films such as The Last Emperor. Then paying for replication costs between 18p and 20p per unit. Total costs when TV advertising is added (as it always is) mount up to between £750,000 and £1.2m for a single DVD. And if you sell 200,000 extra copies to people beyond those who buy the paper anyway, that is £4 per new reader - and remember these are "readers", who have no loyalty.
And where does this money come from, I'd ask in addition? Largely from cutting the quality of the core product - journalism.
And imagine you are a customer of any sort of business that starts to offer you a regular "bonus". Won't you come to expect it, and be angry if it is removed?