MEDIA MARKET DATA - the World Association of Newspapers

SFN Flash January 2004
� MEDIA MARKET DATA
Role of Media
Canada
Canadians depend on their media to be a window on governments' decisions… …according to
a poll commissioned by the Canadian Newspaper Association and the Canadian Association
of Broadcasters. Among the study's findings: 86 percent said they depend upon Canadian
media to remain a force that keeps government accountable; 91 percent believed that keeping
Canadians informed is part of the media's role; and 57 percent felt that maintaining a strong
media industry should be an important part of the new federal government's agenda. CNA
president Anne Kothawala called the results "a message to all governments in Canada that
they cannot simply pay lip service to openness and transparency." Read the full report at
http://www.cna-acj.ca/client/cna/cna.nsf/web/cnanews/ Contact: Anne Kothawala,
akothawala@cna-acj.ca; WAN Newspaper Association Newsletter, December 23, 2003
Media Markets & Newspapers
International
Hollinger Inc. Names Peter White Co-COO. Hollinger Inc. named one of the men who helped
kick-start Conrad Black's newspaper empire more than 30 years ago as co-chief operating
officer and secretary of the company, it said January 13. Peter White, previously a Hollinger
director, also is an executive vice president at two companies controlled by Black -- Argus
and Ravelston. Hollinger Inc. is the Toronto-based parent company of Hollinger International,
the operating company for the Chicago Sun-Times, London Daily Telegraph and the
Jerusalem Post. The announcement of White's appointment came as the company disclosed
that Peter Atkinson has resigned as a director and officer of Hollinger "for personal reasons."
Atkinson previously resigned his board seat with Hollinger International but remains with the
operating company as an executive vice president. Hollinger also said that Charles Cowan
retired at the end of 2003 after many years as its secretary and as a director. White and David
Radler -- who held the chief operating officer position on his own up until Tuesday's
announcement -- were partners with Black in 1969 in their purchase of the Sherbrooke Daily
Record, later sold in 1977 and repurchased in 1999. Other purchases of daily newspapers
followed to form the Sterling Newspaper group, with papers in British Columbia,
Saskatchewan and Prince Edward Island. Sterling Newspapers later became a wholly owned
subsidiary Hollinger Inc. Most of Hollinger's Canadian newspapers were purchased by
CanWest Global Communications Corp. in November 2000. Black's role as chairman of
Hollinger International is reportedly under review because of his refusal to speak to U.S.
financial regulators. The Securities and Exchange Commission is investigating millions of
dollars in payments made to Black and other Hollinger executives. At a Dec. 22 meeting with
the SEC in Chicago, Black invoked his Fifth Amendment right against self-incrimination.
http://www.newsday.com; Associated Press, January 13, 2004

Australia
Shares in John Fairfax Holdings Ltd, Australia's second largest publisher, may lead gains
among the nation's newspapers this year… …as higher advertising revenue and lower
newsprint costs bolster profits.�Fairfax, publisher of the Australian Financial Review, and
Perth-based West Australian Newspapers Holdings Ltd are Merrill Lynch & Co's two top
publishing picks for 2004. Their revenue and earnings potential were being “revitalised'',
Merrill media analyst Patrick Russel said in an interview.�Newspaper stocks are likely to gain
more than broadcasters as economic growth accelerates, leading to more advertising by
automakers and retailers, and help-wanted classifieds. Consumer confidence is highest in
almost a decade, the jobless rate is at a 14-year low, and the central bank has forecast
economic growth of 4% this year, up from 3.5% in 2003.�“Historically, the initial recovery
comes through television,'' said Brian Ingham, who manages the equivalent of about
US$60mil in equities at IMB Matrix Asset Management Ltd here and holds media stocks.�
“The other mediums tend to lag television and may perform better in the next six months,'' he
added.�Publishing & Broadcasting Ltd and Ten Network Holdings Ltd led television stocks
higher last year as advertising rose 7% after two years of declines. As space for television
slots diminished and TV rates rose, publishers such as Fairfax, West Australian, APN News &
Media Ltd and Rural Press Ltd were poised to gain, investors said.�Total ad spending in
Australia was expected to rise 7.4% to A$8.68bil this year, boosted by the Athens Olympic
Games and a federal election, said Steve Allen, a media analyst at Fusion Strategy here.�
News Corp, Australia's largest newspaper publisher in terms of sales, also is expected to
benefit. The impact may be smaller because the company, controlled by Rupert Murdoch,
generates more than 90% of its revenue outside Australia.�Rising employment advertising
may boost Fairfax's earnings, said David Herro, who helps manage US$30bil at Harris
Associates LP in Chicago, and owns 6.8% of Fairfax stock. Job ads accounted for 12% of
Fairfax sales last year.�But not everyone agrees on the outlook. Mark Newman, who helps
manage the equivalent of US$154mil at K2 Asset Management in Melbourne, is wary of both
the economy and the currency. “I'm expecting some slowing in the Australian economy in the
second half of this year,'' he said, suggesting that would be more negative for print media than
others.�Newman's top media pick is News Corp, because it generates most of its revenue
offshore. In Australia, News Corp publishes the Melbourne Herald Sun and Sydney's Daily
Telegraph. TV stocks, meanwhile, may find some support, even if they are no longer the
media leaders. The big issue is how “growth in revenue is going to be split'', said Bob Peters,
a director of Global Media Analysis Pty in Melbourne. Bloomberg; http://biz.thestar.com.my;
January 30, 2004
Canada
CanWest Global Communications Corp., Canada's largest newspaper publisher and secondbiggest
private broadcaster, increased its quarterly profit by 19 per cent… …on strong
earnings from its international operations. But CanWest shares fell $1.07 to $12.18 on the
TSX yesterday due to concern over declining advertising sales at the company's Canadian
broadcast operation. "The bottom line is that the numbers are pretty solid, but there is concern
about the Canadian television side of things," media analyst Robert Bek of CIBC World
Markets said in an interview yesterday. "While the earnings are good, there is concern in the
market about how they got there." He said analysts are watching closely to see whether the
earnings issue is "only a blip" or a sign of longer-term problems for the Canadian TV
division, which is the backbone of the company. "TV is a focus and a concern and I think
there is a question of whether they have cleaned up their problem with their scheduling and
whether we can see improved results." In a conference call after the close of markets
yesterday, CanWest president and chief executive officer Leonard Asper said he believes the

"worst was over" for the television division. "It was a disappointing start to Q1, but sales are
improving looking forward." For the most part, CanWest's media operations performed well,
Asper said. "Our newspapers also experienced year-over-year gains during a period in which
the Canadian economy was still recovering from the well-known setbacks from SARS,
massive forest fires, mad cow disease and a power blackout in Ontario." The company owns
the Global Television network and has broadcast assets in Britain, Australia, Ireland and New
Zealand. It also owns former Southam dailies stretching from Victoria to Montreal, including
the flagship National Post newspaper in Toronto. CanWest earned $81.5 million, or 46 cents a
share, in the first quarter of its 2004 fiscal year, which ended Nov. 30. In the year-earlier
quarter, the company earned $68 million, or 39 cents a share. The higher profits came even as
revenue fell to $719 million from $740 million. The company credited strong performances
from its South Pacific assets, particularly Network TEN, which helped offset weaker revenue
from Canadian broadcast operations. Network TEN reported record quarterly television
revenues, improving CanWest's return from its stake in the company by 42 per cent to $53
million, compared with $37 million in the same period last year. TEN leads the Australian
television industry in the target demographic of 16-39 year olds. The company's two
television networks in New Zealand also reported a 36 per cent increase in revenue to $10
million. The Canadian television market did not fare as well, with revenue declining to $191
million for the quarter, down from $215 million in the same period last year. "The Canadian
television market struggled during the quarter, and declining advertising sales evident across
the television industry in the fall months did not reflect the improving Canadian economy,"
Asper said. As a result, the company will embark on "cost reductions in the television side,"
he said. "We're going to scale back as much as we can." Unlike television, the company's
newspaper divisions made a solid showing. Newspaper revenue grew by 2 per cent to $303
million from $297 million the year before. The company said stable newsprint prices and cost
reductions resulted in the increase. The company said it also was trying to staunch losses at
the National Post, which amounted to about $20 million last year. Losses this year should be
about half that figure, Asper said. CanWest also announced during the conference call that it
plans to launch Internet editions of all its newspapers. In November, the company launched an
electronic version of the Ottawa Citizen, delivered in the same graphic format as the daily
newspaper. Asper said the Vancouver Sun would be next. Little was said yesterday of former
National Post publisher Conrad Black. On Tuesday, CanWest announced that Black and his
partner David Radler would be leaving its board of directors. The company said the two men
would not seek re-election. Black and Radler joined the board in 2000 after the deal that saw
the bulk of the Canadian newspapers owned by Black's Hollinger International Inc. go to
CanWest for $3.2 billion. www.thestar.com; January 22, 2004
Germany
Shock waves at twin pillars of German press. Even now, as Germany's economy rumbles back
to life, the nation's newspaper industry is in post-traumatic shock. With advertising revenue
down nearly 40 percent from its peak in 2000 and once-lucrative help-wanted ads off 75
percent, publishers are being forced to confront fundamental questions about the viability of
their business. Nowhere has the pain been more acute than at Germany's two most celebrated
dailies, the FAZ and its Munich rival, the Süddeutsche Zeitung. Both expanded pell-mell
during the heady days of the Internet boom. In the case of the Süddeutsche, the reversal in ad
sales was so severe that it brought the paper to the brink of bankruptcy in October 2002.
With national distribution of its 388,000 daily circulation, far-flung foreign bureaus and wellhoned
political positions - the FAZ tilts right, the Süddeutsche left - these papers are the twin
pillars of Germany's fourth estate. "It would be the equivalent of The Wall Street Journal and
The New York Times being in critical financial trouble at the same time," said Adam Bird,

head of the media practice at Booz Allen Hamilton in Munich. More than respected editorial
voices, the two papers are German institutions, with complex ownership structures,
consensus-driven management and business philosophies - particularly at the FAZ - that
emphasize long-term values over short-term profit. "These papers were isolated from normal
market forces," said Josef Joffe, editor of the weekly Die Zeit and a former foreign editor at
Süddeutsche. "They went on a spending spree while the guillotine was coming down. They
need to cut back to where they were before." Ask Hans Werner Kilz, editor in chief of
Süddeutsche Zeitung, whether his paper can maintain its editorial quality, and he shrugs. "I'm
an optimist by nature, but ..." he said, the words trailing off. In the past three years, Kilz has
presided over a reduction in his staff, to 307 from 425, the closing of a regional edition in
Düsseldorf and the scrapping of a section devoted to news from Berlin. He has preserved the
paper's 22 overseas news bureaus, but has cut travel budgets to the bone. By all accounts, the
Süddeutsche survived a brush with insolvency in late 2002 because of an E150 million
investment, or $187 million at current exchange rates, by a new shareholder. The investor, the
regional newspaper chain Südwestdeutsche Medien, joined the five Bavarian families that had
started the paper in October 1945 after obtaining a publishing license from the U.S. occupying
forces. Although the new investor has only an 18.75 percent stake in the parent company,
Süddeutscher Verlag, several insiders said it has had a palpable effect on how the paper is run.
The owners, they said, are more determined to extract a return on their investment, even if
that requires deep cuts. Süddeutsche Verlag, which also publishes professional books, lost
E76.6 million in 2002, the last year for which it published figures. The company estimates it
broke even last year, though the final figures, which will not be published until summer, may
show a small loss. Hanswilli Jenke, one of two managing directors, said the paper was still in
the midst of a two-year turnaround. "The boulder was rolling down the mountain," Jenke said.
"We stopped it in the middle of the slope, and now we have to push it back up the mountain."
Among other things, Jenke said the company had strengthened its advertising sales staff. He
said he hoped eventually to sell ancillary products, like books, CD's and DVD's, to
Süddeutsche's 310,000 subscribers. Adding newsstand sales, the paper's total daily circulation
is 437,000 copies. Jenke said Süddeutsche had streamlined its management, but he denied that
the company, or its new co-owner, would sacrifice editorial quality in a rush for profits.
"The challenge is to maintain the quality," Jenke said. "Editorial quality is the basis of our
economic model." The Frankfurter Allgemeine Zeitung, which is majority-owned by a nonprofit
foundation, does not face quite the same pressures. But its parent, FAZ Group, posted a
loss of E60.6 million in 2002 and is expected to report another loss for 2003.
At the peak of the Internet boom in 1999 and early 2000, when companies bought half-page
ads to recruit executives, the FAZ turned away advertising. On Saturdays, when it carries
help-wanted advertising, the paper used to carry more than 234 pages of ads. On a recent
Saturday, it ran 44 pages. "My question was: Did our whole business model work anymore?"
said Frank Schirrmacher, one of the five publishers, who oversees the culture and ideas
section. Like the Süddeutsche, the Frankfurter Allgemeine had expanded aggressively, with
customized sections for Berlin and Munich, and a six-day-a-week English-language edition
distributed as an insert in the International Herald Tribune, which is owned by The New York
Times Co. The customized sections were scrapped. The English edition shrank to a tabloid
published once a week. The paper cut its benefits - not just the company cars, but its generous
pensions. In a nod to Germany's cultural sensitivities, the paper did not take away cars from
existing employees, although they will have to pay a monthly fee to cover their private use of
the vehicles. Starting this month, only new employees at the department-head level will
receive a car. The ownership structure of the FAZ insulates its publishers - who function more
like top U.S. editors - from a lot of pressure. It is difficult for the managers of the parent

company to dismiss these five men. Still, Schirrmacher said he and his colleagues recognized
that unless they stabilized the paper's finances, they risked losing their franchise.
"We did this to preserve our independence," he said. Schirrmacher said he felt the FAZ had
turned the corner. The preliminary results for 2003 do not look as grim as in previous years.
And the paper, which had been gradually losing readers since 2001, picked up a few in the
most recent industry survey, while the Süddeutsche lost some. In Munich, Kilz is also trying
to look on the bright side. He noted that the Süddeutsche had widened its lead over the FAZ in
circulation in recent years. Now, as he faces a new owner and an uncertain future, Kilz can
only hope his paper's values will prevail. "We publish this paper with a piece of our hearts,"
he said. "The people here love this paper. One must not do anything to take away this love."
The New York Times; www.iht.com; January 19, 2004
India
The circulation of Indian newspapers jumped 24 per cent to 142 million in 2002-03 against
115.3 million in 2001-02… …according to the 47th ‘Press in India’ report brought out by the
Registrar, Newspapers of India. The jump in readership is attributed to a larger number of
publishers submitting their annual statements for the survey. For the first time, the survey was
based on financial year and not on calendar year. The present report contains an analysis for
15 months from January 1, 2002 to March 31, 2003. Among the multi-edition dailies, Dainik
Bhaskar, publishing in Hindi, has the largest circulation of 1.71 million copies, followed by
Times of India with 1.39 million copies. For single-edition dailies, Hindustan Times has a
circulation of 1.11 million copies, while The Hindu is second with 922,407 copies. “The
circulation pattern revealed that while the big publishing houses dominated the metros, the
medium and small newspapers, with their local content, influenced the readership in small
towns and rural areas,” an official statement said. www.business-standard.com; January 1,
2004
Iraq
US firm to run Iraqi TV and paper. The Pentagon has awarded a 74.7m euros ($96m) contract
to a US communications equipment maker to run Saddam Hussein's old television and radio
network, now called al-Iraqiya, for the next 12 months. Florida-based Harris Corporation will
operate the national newspaper formerly run by Hussein's son Uday, in addition to running the
broadcast network. When Hussein's government fell in April, the state-run broadcast stations
and newspaper were seized and put under the authority of a US defence contractor, Science
Applications International Corporation (SAIC). One of the two Harris Corp partners, a
Kuwaiti publishing and telecommunications company, Al-Fawares, is to run the newspaper
and train the journalists. The other partner is the Lebanese Broadcasting Corp (LBC).
www.washingtonpost.com; The EJC Media News Digest of 13 January 2004
Japan
Daily aggregate newspaper circulation at 52.87 million as of October 2003, that is down 0.6
percent from a year earlier, in a fourth straight year-on-year decline. The NSK survey,
"Circulation and Diffusion of Newspapers By Prefecture," has reported that the daily
aggregate newspaper circulation in Japan was 52,874,959 (copies) as of October 2003. If
morning issues and evening issues are counted separately, the total comes to 70,339,887
copies, of which 51,246,188 are morning issues and 19,093,699 are evening issues. The
survey covered 123 NSK member newspapers. According to the survey, the circulation of
"set" newspapers, that is, sets of morning and evening editions, fell 0.9 percent year-on-year,
in a 13th straight yearly drop. The circulation of morning editions alone fell 0.4 percent, while
that of evening editions plunged 3.1 percent. By region, overall circulation fell in all areas

except the Kinki region (Osaka and its five neighbouring prefectures) and Okinawa, where it
grew by 0.4 percent and 1.0 percent, respectively. The average newspaper distribution per
household fell 0.02 percentage points to 1.07 copies. The newspaper diffusion rate per 1,000
people was 555 copies. NSK News Bulletin Online, January 2004, www.pressnet.or.jp/newsb/
Malaysia
The New Straits Times Press Bhd (NSTP) is making moves to improve its market share and
boost advertising revenue. Chief executive officer Syed Faisal Albar said one way to boost
readership is to continue to expand the reach of The Malay Mail, an afternoon paper that is
being circulated nationwide. The Malay Mail is now available in Penang, Johor and Ipoh,
Perak. He said better economic prospects and efforts to increase the group’s circulation would
enable the company to increase advertising revenue in 2004. NSTP’s advertising revenue
improved by 4 per cent in 2003. The newspaper group is also improving content as a major
part of remaking the paper, said newly appointed group editor-in-chief and executive director
Datuk Kalimullah Hassan. “We are looking at a wide range of things including columnists,
the make-up of the paper and re-deploying personnel to more strategic roles. I have just been
in (the company) for two weeks, so I think it’s too early to say anything definitive,” he said.
On competition, Kalimullah said the NST and The Star newspapers should not be compared
to The Sun, which is a free paper. “If you look at (The Sun) editorially, there have been a lot
of improvements under Ho Kay Tat, The Sun’s editor-in-chief. Certainly, the fact that they are
taking the market share is a figure for us to look at and try to improve on, and the competition
is good for all of us,” Kalimullah said at a press conference after NSTP’s extraordinary
general meeting in Kuala Lumpur yesterday. He said that NSTP would do its best to be as
objective and professional as it can. “It is probably still too early for readers to see any
changes in the group’s papers at the moment. “All we want to do is to run a professional
newspaper. Just give us three to five months and maybe you can see a marked difference.
Then, maybe we will start attracting the attention,” Kalimullah said. NSTP publishes New
Straits Times (NST), Berita Harian, The Malay Mail and Harian Metro. “I think we have to be
realistic and accept the fact that there has been a decline in the readership and circulation of
NST over the years,” he said. He added that the company, which has some 600 editorial staff,
would also be hiring in a move to strengthen the content of its newspapers. Kalimullah said
that hiring new people is an on-going process in the news industry. “You keep on hiring
people and people keep on leaving. I can’t give a definitive number but certainly we have
very good people in NST,” he added. When asked whether NSTP is considering reviving
Business Times as its financial daily, Kalimullah said: “These are the things we are looking
at. We have not decided yet as of now.” Business Times was incorporated into the New
Straits Times on June 1 2002. The Sun, meanwhile, has added a financial supplement known
as The Edge Financial Daily to the paper since December last year. Last year, NST saw an
average daily circulation of 135,000-137,000 copies, while the Malay Mail’s circulation is in
the high 40,000s, said Syed Faisal. Berita Harian, a Malay-language broadsheet, saw an
average daily circulation of 230,000 while the urban Malay tabloid Harian Metro’s daily
circulation stood at 175,000. Shares of NSTP rose 3.2 per cent or 14 sen to RM4.50 yesterday,
its highest since November 2002. At the EGM, shareholders approved the company’s
proposed new employee share option scheme. http://www.emedia.com.my; Tuesday, January
13 2004
Poland
Only a month after it entered the Polish market, Alex Springer Verlag-owned tabloid "Fakt"
managed to place second among top-sellers. According to the monthly report of the
Newspaper Distribution Control Association, the average sales in November reached 374,200

copies. In comparison, the leading daily "Gazeta Wyborcza" had sold an average of 451,600
copies, while third-placed "Super Express", also a tabloid, sold nearly 276,000 copies. With
an initial print run of 700,000, the tabloid "Fakt" went on sale in October for the price of 1
zloty (0.21 euro), less than any other Polish daily. Modelled on Springer's leading tabloid
"Bild", the largest European daily, "Fakt" is set to reach a turnover of 50m euros.
http://derstandard.at; The EJC Media News Digest, January 13, 2004
South Africa
The Standard Newspaper Group posted an Sh47.6 million after tax profit for the year ended
September 30, 2003. The Group's consolidated profit and loss account indicates a turnaround
to profitability from the previous year's Sh12 million loss. Group Managing Director Tom
Mshindi said the improved results were attained despite the difficult economic environment
during the review period. He was optimistic that performance during the current financial year
would be even better, citing recent restructuring and tighter financial controls, which are
expected to position the group to enjoy business opportunities in the industry. He said the
return to profitability was also realised due to ongoing product development, especially during
the second half of the year. The process is anticipated to continue in the current year, he said.
According to the audited results, the group's turnover also increased by 14.3 per cent to
Sh1.51 billion, up from Sh1.32 billion the previous year. Gross profit grew by 21 per cent
from the previous year's Sh794.7 million to Sh962.6 million. Profit from operations rose to
Sh95.8 million, up from the previous year's Sh20 million. The good performance is confirmed
by an improvement in the price of Standard Newspapers shares traded on the Nairobi Stock
Exchange. The stock has more than doubled in the last four months, to trade at a high Sh41 at
yesterday's close of trading. http://allafrica.com; January 15, 2004
Singapore
Singapore Press Holdings Ltd. reported a slight 1.2% jump in first-quarter net profit, as its
property business helped offset falling advertising at its core newspaper business. Southeast
Asia's biggest listed publisher reported net profit of 83.75 million Singapore dollars for the
first quarter ended Nov. 30, from S$82.79 million a year ago. Total revenue fell 0.9% to
S$242.93 million from S$245.21 million, with newspaper and magazine revenue falling 2.9%
to S$208.1 million. Print advertising, which makes up about two-thirds of total revenue, fell
3.9% to S$159.3 million, the publisher said in its maiden quarterly report, as fewer consumers
and companies placed advertisements at SPH's stable of 14 newspapers and six magazines.
Most listed Singapore companies are required to start quarterly reporting no later than this
year. Property revenue jumped over 50% to S$19.8 million, due to more rental income as a
result of the new extension to the Paragon shopping mall on the busy Orchard Road
commercial district, SPH said. The publisher of the 158-year old Straits Times newspaper said
it was cautious for the rest of the year. "Despite early signs of an improving outlook for global
economic growth, there are continued uncertainties over the growth momentum ahead," said
SPH Chief Executive Alan Chan in a statement. The positive, but cautious, outlook comes
amid improving fortunes for Singapore's domestic economy. Gross domestic product is
expected to grow by 3%-5% this year after posting a modest 0.8% growth last year, according
to official data. SPH earnings were weighed by sluggish consumer sentiment as a "two-speed
economy" meant that exports were growing but domestic consumption was weak as
unemployment scaled 17-year highs, an analyst at a foreign brokerage said. Revenue at SPH's
broadcast business, where it runs two television channels, slipped 21% to S$12.4 million for
the quarter. The broadcast business made a net loss of S$12.9 million from an S$2 million net
profit in the year-ago period. SPH said it expects the television business to continue to lose
money in the current year. Dow Jones, January 12, 2004

Switzerland
The number of Swiss newspapers continued to decline in 2003, and 8 titles disappeared…
…according to the professional magazine ‘Flash’, published by the association Presse Suisse.
Now there are 216 titles with aggregate circulation less than 4 million copies, that is the
lowest level over10 years. In 1995, there were 257 newspapers in Switzerland. Among the
principal titles that disappeared are the Sunday newspaper ‘dimanche.ch’, ‘Wolhuser Bote’
and ‘Chronique de Pully’Lavaux’, as well as ‘Weinlander Zeitung’ after 136 years of
existence. Correspondence de la Presse, January 5, 2004
United Kingdom
The Sun's circulation has fallen to its lowest level in 30 years… …after dropping nearly 5% in
just 12 months, dealing a blow to Rebekah Wade who is this week celebrating a year in the
editor's chair. Sales of the tabloid newspaper fell below 3.3 million in December for the first
time since January 1974, 4.95% down on the previous year. It reached just 3,277,000,
according to audited ABC figures, well down on the previous year but still well ahead of
January 1974 when it last fell below the psychologically significant 3 million mark.
December is traditionally a slow month for newspaper sales and the Sun was by no means the
worst performer. But the figures will nonetheless come as a psychological blow for the paper,
which has enjoyed a relatively stable circulation over the past three decades thanks in part to
its aggressive pricing strategy. More than 100,000 readers deserted the paper in December
compared with the previous month, a fall of more than 3%. This was more of a drop than any
other national daily paper except the Daily Star and the Daily Express. The 5% year-on-year
drop will be particularly embarrassing for Wade, who took over last January and has spent the
first week of this year watching arch-rival Daily Mirror dominate the news with its scoop that
Princess Diana believed Prince Charles wanted her dead. In the final year of her predecessor
David Yelland's tenure the Sun's circulation increased by 4.2% to just under 3.5 million a day,
while the Daily Mirror's fell by 0.75% to just over 2 million. The one consolation for Wade
will be that the Mirror's sales have fallen even further, dropping 6.5% year on year to 1.9
million last month. The figures for both papers are particularly dramatic because they were
artificially boosted by low prices in 2002. The Mirror called a truce in its bitter price war with
the Sun last spring, at the instigation of new Trinity Mirror chief executive, Sly Bailey. The
war, launched by the Mirror in May 2002, is estimated to have cost the Sun £65m. At its peak,
more than 2 million copies of the paper were being sold at a discount. No one at the Sun could
be reached for comment. Guardian, January 12, 2004; please read also EDITORIAL
CONTENT – Redesigning / Restructuring Newspapers
United States of America
Dow Jones Seen Leading Newspaper Sector. While analysts at Merrill Lynch continue to see
challenging times ahead for newspapers, the firm said the industry is "fighting back" and is
calling for 2.5% to 3% ad revenue growth in the fourth quarter of 2003. The research
company recently raised its 2004 projections to 4.5% from 4% and looks for Wall Street
Journal publisher Dow Jones to lead the pack this year, according to Forbes.com. Merrill said
Dow Jones "has the best operating leverage among the companies we follow" and believes it
will report "well above average" growth this year. Merrill also cited Tribune Co. and Gannett
for strong performance in 2004. Knight Ridder and The New York Times Co. were singled
out by Merrill for underperformance. Editor & Publisher, January 14, 2004;
http://www.mediainfo.com

United States of America
Major papers begin reporting Q4, show healthy ad gains. The first look at the newspaper
industry's fourth quarter has come in—and it's pretty good. No, it's not incontrovertible
evidence of the sustained recovery that many publishers have been hoping forever since the
newspaper industry fell hard into the media recession. And the newspaper industry has had
false starts before, including a strong fourth quarter in 2002 that skidded a bit in 2003. But
Pulitzer Inc. and Lee Enterprises both saw increases in advertising revenues in many
categories for the quarter, Pulitzer's fourth, and Lee's first fiscal quarter. Pulitzer's advertising
revenues rose 5.2 percent to $114.1 million in the fourth quarter, led by a strong 5.7 percent
increase in revenues in December. Several categories--including retail, national, and classified
-- were up more than 5 percent for the company that publishes the St. Louis Post-Dispatch and
the Arizona Daily Star in Tucson plus 12 other daily newspapers. Retail advertising was
boosted by a rise in preprints and what Pulitzer termed "general stability from major retail
advertisers," which has been holding back a lot of newspaper companies. Classified as a
category was up 5.6 percent, including a slight increase in help-wanted and a double-digit rise
in real estate but a drop in automotive. Pulitzer's 2003 finished up slightly positive, with a 1.6
percent increase in total revenues aided by a 2.6 percent rise in advertising revenues to
$271.84 million. Retail, national, and preprint advertising rose, while classified fell about $3
million to $122.63 million compared to 2002. Robert C. Woodworth, president and chief
executive officer of St. Louis-based Pulitzer, said Tuesday morning that the company's
momentum grew month to month, with ad revenue increases in eight of the past 12 months. In
a conference call with analysts following the earnings release, Woodworth and other
executives were positive about how the year ended, and were looking as far into 2004 as
possible. But Pulitzer--like the rest of the newspaper industry--has been here before, and they
aren't willing to bet the farm on recovery, so to speak. "We've seen encouraging signs of an
improvement in advertising revenue before, only to be disappointed," Woodworth said. Still,
fourth-quarter revenues were better than expected, due to strength in December. One category
where Pulitzer wants to wait and see is help wanted, which was up overall--particularly in
Tucson, which is jointly owned by Pulitzer and Gannett. In St. Louis, November and
December's employment advertising revenue was up for the first time in several years. But it
was "more rate than volume, unfortunately," an executive said. "The best way to describe
employment is uneven," said Woodworth. Lee Enterprises, an Iowa-based publisher of
midsize newspapers, reported Tuesday that its advertising revenues rose 4.3 percent to $130.8
million in the quarter ended Dec. 31. Retail advertising continued strong, as well as Lee's first
quarterly gain in help wanted revenue in three years. www.mediapost.com; January 21, 2004
United States of America
The first wave of fourth quarter and 2003 year-end financial figures showed a slight upturn
for the newspaper industry… …with Knight Ridder, E.W. Scripps Co. and Pulitzer Inc. all
reporting increases in fourth-quarter net income and year-end earnings. Knight Ridder
reported 2003 fourth-quarter earnings of $99 million, up 2.5 percent from the same period in
2002. Sales for the fourth quarter hit $772 million. For the year, Knight Ridder reported $2.9
billion in operating revenue, up 0.5 percent from the previous year. Circulation revenue was
down 3.5 percent to $470 million. Year-end net income earnings were $296 million, up 15
percent from 2002. “The year concluded on a positive note,” said Knight Ridder Chairman
and Chief Executive Officer Tony Ridder.� “A stronger than anticipated December with ad
revenue up 1.4 percent contributed to these results.” Ridder said the company also benefited
from reduced interest expense, an improvement in its equity earnings and a slightly lower tax
rate in the fourth quarter. E.W. Scripps Co.’s newspaper segment posted net earnings of $77
million, up 2.3 percent for the quarter ending Dec. 28, 2003. Newspaper advertising was $144

million, a 1.8 percent increase over 2002. Local retail advertising decreased 3.8 percent to
$46.4 million, while classifieds increased 2.2 percent to $50 million and national advertising
increased 10 percent to $11 million. Scripps’ newspaper segment reported a slight loss in
year-end earnings of 0.6 percent to $268 million. Total revenues increased 1.4 percent to $692
million. The (Denver) Rocky Mountain News contributed $15.3 million to Scripps’ segment
profits, compared to $9.4 million in 2002. Pulitzer Inc. posted fourth-quarter earnings of
$14.3 million, up 17 percent from the same period in 2002. Pulitzer’s net income was $42
million for the year, compared with $34.7 million the prior year. Total operating revenues for
the year totalled $351 million. Total ad revenue for 2003 increased to $271 million, while
retail ad revenues increased $2.2 million to $29 million. �http://www.newsandtech.com;
January 26, 2004
United States of America
Journal Register Company reported net income of $16.4 million, or $0.39 per diluted share,
for the quarter ended December 28, 2003… …as compared to net income of $14.2 million, or
$0.34 per diluted share, for the quarter ended December 29, 2002, an increase of 15.2 percent.
For the year ended December 28, 2003, the Company reported net income of $72.0 million, or
$1.72 per diluted share, an increase of 47.9 percent as compared to $49.2 million, or $1.16 per
diluted share, for the year ended December 29, 2002. Excluding special items, the Company
reported earnings per diluted share of $0.35 for the fourth quarter of 2003, an increase of 2.3
percent as compared to $0.34 for the fourth quarter of 2002, and $1.19 for the full year 2003,
an increase of 4.8 percent as compared to $1.14 for the full year 2002. The special items are
comprised of the reversal of certain tax accruals in the third quarter of 2002 and in the third
and fourth quarters of 2003, as well as a special charge recorded in the third quarter of 2003
related to a potential acquisition. Also, for comparison purposes, where noted, the Company's
operating results are presented on a same-store basis, which excludes the results of the
Company's acquisitions and dispositions from the current and prior year periods. Chairman,
President and CEO Robert M. Jelenic stated, "We are pleased with our 2003 financial results,
which reflect solid year-over-year increases in our diluted earnings per share for the fourth
quarter and full year, and we are optimistic that the improvement in advertising revenue
trends will continue to build momentum in 2004. We expect classified employment revenues,
which turned around in the second half of the year and were positive during each period of the
fourth quarter, as well as continued improvement in retail advertising revenues and the overall
economic environment, to help drive our 2004 results." Total revenues for the quarter and the
full year ended December 28, 2003, were $104.4 million and $406.0 million, respectively. On
a same-store basis, total revenues for the fourth quarter of 2003 were $102.8 million, as
compared to the fourth quarter 2002 revenues of $103.3 million. For the full year ended
December 28, 2003, total revenues on a same-store basis were $399.7 million as compared to
$403.7 million in 2002. Total advertising revenues for the fourth quarter of 2003 were $78.0
million as compared to $77.6 million for the fourth quarter of 2002. For the full year 2003,
total advertising revenues were $299.0 million, as compared to $297.1 for the full year 2002.
For the fourth quarter of 2003, same-store advertising revenues increased 0.4 percent to $76.4
million from $76.1 million for the fourth quarter of 2002. http://home.businesswire.com;
January 29, 2004
United States of America
Tribune Co. said that its quarterly profit rose, helped by growth at its newspaper and
television operations. The owner of the Los Angeles Times and Chicago Tribune newspapers
said fourth-quarter profit increased to $332.4 million, or $1.00 a diluted share, including a 34cent
a share special gain. The company earned $187.2 million, or 57 cents a share, a year

earlier. Analysts, on average, were expecting profit of 64 cents a share for the latest quarter,
according to Reuters Research. Quarterly revenue rose to $1.47 billion, up 2.8 percent from a
year earlier. Publishing revenues were $1.08 billion, up 2.3 percent from the 2002 period. The
television unit's fourth-quarter revenues increased 4.1 percent to $353 million. Tribune (TRB:
Research, Estimates) repeated earlier forecasts of 6 percent revenue growth in 2004 and said
earnings per share should be within the range of analysts' current targets. Analysts, on
average, expect full-year earnings of $2.38 a share, according to Reuters Research.
http://money.cnn.com; January 28, 2004
Newspaper Launches
Algeria
The first issue of a new national daily ''El Djazair News'', in Arabic and French, appeared on
the market January 10. Publisher of the daily, Hmida Layachi, has indicated that the
newspaper comes ''to fill out the gap on the media scene in objectivity of information diffused
towards citizens''. ''El Djazair News'', he added, ''doesn’t have an editorial line but it aspires to
have an editorial strategy.” Regarding the launching of the same edition in Arabic and French,
he said that the daily aims to ''remove the barrier and change the vision of the francophone
and Arabic media''. www.aps.dz; January 11, 2004
China
Yangcheng Evening News Group, publisher of the Guangdong Communist Party's official
newspaper, has launched the mainland's first daily aimed at private entrepreneurs. The Private
Economy News, which sells for 1.5 yuan (HK$1.41) a copy, will be distributed nationwide
with an average 20 pages. Yesterday's inaugural issue had 108 pages. The group, which
invested 40 million yuan on the new daily, hopes to turn the newspaper into a joint stock
company by luring private enterprise to take stakes in it, The Standard has learnt. After six
months of preparation, the media group received the green light from the State Administration
of Press and Publication at the end of last year. Guangdong party chief Zhang Dejiang has
also supported the new newspaper. Xiao Fu, deputy general editor of Yangcheng Evening
News, is the concurrent publisher of Private Economy News. Chief editor Pan Xiong said
private entrepreneurs, especially in the Pearl River Delta and Yangtze River Delta, were
expected to be core readers. Currently there are eight million private firms and individually
owned businesses nationwide, of which about 2.2 million are in Guangdong. Pan, who is in
his 50s, is a former member of the editorial board of the GD-HK Information Daily, which
ceased publication yesterday. Several of the loss-making newspaper's editorial staff now work
for Private Economy News. Liu Huanquan, director of the Small and Medium Enterprise
Bureau, said it was necessary to set up a platform to help improve communication between
the government and the private sector. At the end of November, Guangdong had 1.86 million
individually owned businesses and 307,000 private companies, employing 3.88 million and
3.24 million people respectively, according to official data. Between January and November,
the number of newly registered individually owned businesses - involving registered capital
of 8.29 billion yuan - was 340,000, up 10.17 per cent on the corresponding period a year
earlier. During the same period, the number of newly registered private enterprises was
73,500 and involved registered capital of 74.8 billion yuan, which grew by 29.61 per cent and
33.52 per cent respectively from the same period in 2002. http://www.thestandard.com.hk;
January 10, 2004

Poland
Slowo Polskie Gazeta Wroclawska in Wroclaw. Polskapresse, a publisher that bought two
dailies in Wroclaw (Slowo Polskie and Wieczor Wroclawia) from Orkla Media, and was
publisher of a third (Gazeta Wroclawska), has joined them into one daily called Slowo Polskie
Gazeta Wroclawska. WAN Newspaper Association Newsletter, December 23, 2003
Slovenia
Three new dailies are expected to be launched on the Slovenian market this year to rival the
existing six. They include a new nation-wide serious newspaper, a new tabloid, and the
country's first regional daily. Currently published three days a week and focusing on the
coastal region of Primorsko, the Koper-based Primorske novice plans to turn into a daily in
the middle of this year. According to a national press survey, Slovenia's most read daily in the
first half of 2003 was the tabloid Slovenske novice with an average audience of 355,000. Delo
leads the serious daily newspapers with 237,000 readers, followed by the Maribor-based
Vecer with 170,000. http://www.sta.si; The EJC Media News Digest of 12 January 2004
United States of America
Palm Beach Newspapers will start publishing the Spanish-language newspaper ‘La Palma’.
The weekly 25,000-circulation newspaper, called La Palma (The Palm), will be available free
through racks and in-store dealers in Palm Beach County beginning February 6. Home
delivery will begin later this year. La Palma will replace El Pennysaver, a weekly Hispanic
shopper that Palm Beach Newspapers has published for three years. El Pennysaver ads will
become a part of La Palma. Emily Mendez, 27, a graduate of the University of Florida, will be
editor of the new newspaper. Mendez has worked at The Palm Beach Post for nearly five
years, first on the news desk editing and designing pages for the Local news and A sections,
and then in the sports section. "Our goal for La Palma is to serve our growing and diverse
Hispanic community with news from throughout Palm Beach County and from their native
countries in a language and style they can understand and enjoy," Mendez said. Census
figures from 2000 show that more than 140,000 Hispanics now live in Palm Beach County.
Joyce Sullivan, 58, general manager of El Pennysaver and Florida Pennysaver and secretary
of the Hispanic Chamber of Commerce of Palm Beach County, has been named general
manager of La Palma, in addition to her other duties. "Working with the Hispanic chamber,
I've seen the need for a Spanish-language paper with a focus on local news," Sullivan said.
"La Palma will fill that need." The newspaper's Web site, LaPalmaInteractivo.com, with news
and advertising in Spanish, will be available beginning Feb. 6. Palm Beach Newspapers,
publisher of The Palm Beach Post, The Palm Beach Daily News, El Pennysaver and
FloridaPennysaver newspapers, is owned by Cox Newspapers in Atlanta.
www.palmbeachpost.com; January 18, 2004
United States of America
New Haven Register to launch Play, a new weekly tabloid targeting 18- to 34-year-olds.
Journal Register Company (NYSE:JRC) announced today that on March 3, 2004, its flagship
New Haven Register will launch Play, a new, free weekly publication aimed at readers 18 to
34 years old. Play will capture the energy of the 18- to 34-year-old crowd and will provide
lively, vibrant information focused on the preferences of young adults. The full-colour tabloid
will primarily cover a range of lifestyle topics, including entertainment and nightlife, cultural
issues, recreation, careers, health and relationships. Initial distribution will be 25,000, and
Play will be distributed free at over 500 locations throughout New Haven and its surrounding
areas. Play Editor Jonathan Cooper promises a publication "that will be fun, informative and a

little bit edgy - something that you will look forward to picking up each week. We expect
Play to be the resource for places to go and things to do in our community, as well as a useful
source for news and features of interest to young adults." Journal Register Company
Chairman, President and Chief Executive Officer Robert M. Jelenic said, "Our mission has
always been to be the number one provider of local information in our markets, and Play is an
extension of that principle targeting the 18- to 34-year-old audience. These young adults still
want their news and information on local events, but may prefer it in a different format with a
different focus. Play will enable us to provide these readers with the entertaining, useful and
compelling information that they want, while complementing the New Haven Register's
ability to provide the advertisers in our New Haven market with further access to a highly
attractive audience." Play will also feature a companion Web site under the CTCentral.com
umbrella (www.CTCentral.com). Journal Register Company is a leading U.S. newspaper
publishing company that owns 23 daily newspapers, including the New Haven Register,
Connecticut's second largest daily and Sunday newspaper, and 236 non-daily publications.
Journal Register Company currently operates 151 individual Web sites, which are affiliated
with the Company's daily newspapers and non-daily publications, and can be accessed at
www.journalregister.com. All of the Company's operations are strategically clustered in six
geographic areas: Greater Philadelphia, Connecticut, Greater Cleveland, Central New
England, and the Capital-Saratoga and Mid-Hudson regions of New York. The Company has
an investment in PowerOne Media, Inc., a leading provider of online solutions for
newspapers, hosting the largest online newspaper network in the U.S. This news release
contains forward-looking statements that involve a number of risks and uncertainties, which
could cause actual results to differ materially. These include, but are not limited to, the
success of the Company's acquisition strategy, dispositions, the ability of the Company to
achieve cost reductions and integrate acquisitions, competitive pressures, general or regional
economic conditions and advertising trends, the success of product launches, the
unavailability or a material increase in the price of newsprint and material increases in interest
rates. These and additional risk factors are outlined in the Company's most recent Annual
Report on Form 10-K filed with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly update any forward-looking statement, whether as a
result of new information, future events, or otherwise. http://home.businesswire.com ; January
21, 2004
United States of America
The Daily News' parent, MediaNews Group, will launch IMPACTO USA, the Los Angeles
area's largest weekend home-delivered, Spanish-language newspaper. IMPACTO USA is an
expansion and relaunch of the tabloid El Economico, which has served the Los Angeles
community for more than 11 years. In the San Fernando Valley, it was known for many years
as Vecinos del Valle. The new, colourful broadsheet newspaper will be delivered every
Saturday to more than 250,000 Hispanic households in the Valley, Central and East Los
Angeles and Long Beach. "L.A. County's Hispanic population is 4.5 million strong and now
represents nearly 45 percent of the county's total population," said Gerald Grilly, executive
vice president and chief operating officer of MediaNews Group, which is based in Denver.
"We're committed to creating an essential, must-read product in the largest Hispanic market in
the country," he said. The distribution methodology for the newspaper, which targets the
highest concentration of Hispanic households in key retail locations, was developed by the
Latino Newspaper Network, a marketing and advertising sales partnership consisting of
MediaNews Group, Copley Newspapers and the New York Daily News. IMPACTO USA's
national content will be divided into three sections: news, lifestyle and sports/automotive. It
will also feature high-profile columnists such as Raymond Rodriguez, Maria Elena Salinas,

and Nina Rodriguez, said publisher Fernando Paramo. "At 250,000 copies we are nearly twice
the size of La Opinion, the next largest paper in the area," Paramo said. MediaNews Group's
decision to invest significantly in IMPACTO USA is in large part driven by market need:
"L.A.'s Hispanic community now represents over $77 billion in retail sales," said John
Schueler, president and CEO of the Los Angeles Newspaper Group, a division of MediaNews
Group with eight daily newspapers in Southern California. "There is open opportunity in Los
Angeles to serve the Hispanic market with a new media product that home-delivers news and
advertising, intelligently combined, to an audience with the real capacity to 'do' and 'spend',"
Schueler said. "IMPACTO USA is rising to meet a fast-growing market need." In addition to
the Daily News, LANG newspapers include: the Press Telegram in Long Beach, Pasadena
Star-News, Whittier Daily News, San Gabriel Valley Tribune, Redlands Daily Facts, The Sun
in San Bernardino Sun, and the Inland Valley Daily Bulletin in Ontario.
www.presstelegram.com; January 19, 2004
United States of America
This February, a new publication will highlight the Hispanic population in Central New York.
The free, bilingual newspaper, CNY Latina, will be published monthly. "This is relatively
new for me," says Hugo Acosta, president and publisher of CNY Latina. "But I have strong
entrepreneurial fever." Acosta says the population in the area is large enough to support the
venture. According to the 2002 U.S. Census, the Hispanic population in Onondaga County
alone is 11,176 people. Mid-York Weekly & Pennysaver, part of the Tenney Media Group in
Clinton, will print 5,000 copies of the first issue, tentatively scheduled for early February. The
newspaper, in tabloid format will include around 18 to 20 pages, Acosta says. The front and
back covers will be the only pages in colour. CNY Latina will feature sections on a variety of
topics, including Latino news, sports and hobbies, arts and education, business and economy,
and jokes and cartoons. Acosta, a native of Venezuela, says he has gotten positive feedback
from the local Hispanic population. A Hispanic lawyer will be writing a legal column, while a
local restaurant owner will write about Latino cuisine. Local organizations, such as the
Spanish Action League, will also contribute to the paper. Acosta says he is also working with
Center Stage Events to create a section in the Taste of Syracuse show. In addition, Acosta is
working on an affiliation with the Salty Dogs. "We want to promote the sport, so kids do
soccer instead of drugs," he says. Currently, the newspaper's main office is in Acosta's home
in Tully. He employs one full-time person, and nine volunteers help out. "The majority of
people helping us are Latino," he notes. Two individuals will help deliver the paper to
distribution points such as newsstands and malls -- around the city. For the first five to six
issues, tile target area will be Syracuse. Acosta says that by the end of 2004, he hopes to
expand that to Watertown, Cortland, Auburn, and Utica/Rome. He says that there are no other
Spanish newspapers in those areas. Acosta says that his publication will offer advertisers the
chance to reach a wider audience since it will feature bilingual advertisements. He says
advertising rates will be "considerably lower than what other papers charge, but declined to
name prices. Acosta -- who founded H.A. Technical Services. an Internet consulting firm, in
1991 -- was bit by the newspaper bug only a month ago. In September 2003, a friend of
Acosta's at the Spanish Action League encouraged him to put-sue, the idea. "When I get an
idea, I don't fool around," he says. "I tackle it." Acosta used $5,000 of his own money to get
the business going. A few companies -- including McDonald's, Time Warner, Carrier
Corporation, BlueCross BlueShield, and the Pyramid Companies -- have expressed interest in
the publication. Acosta plans to keep his consulting business for now. Acosta says he would
like his newspaper to change people's perceptions about the Hispanic community. "Generally,
when you hear about Latinos or Hispanics, it's for negative reasons," he says, noting drug
dealers and robbers, "We're trying to change that." In addition, he says he has a more personal

goal of getting back to his roots. "When I came to this country, I had to stop being Hispanic,"
he says, noting he had to change his cultural attitudes. "I did it too heavy. I don't even speak
Spanish well anymore." www.hispanicbusiness.com; January 19, 2004
Uzbekistan
Uzbek Liberal-Democratic Party founds a new socio-political newspaper called Asr 21 (21st
Century). The founder of the newspaper, the Liberal-Democratic Party of Uzbekistan, unites
business circles. The paper is expected to strengthen the position of businesses on the political
arena. Asr 21 is being published in the Uzbek language once a week. It is planned that the
newspaper will also be published in Russian and English. Miradil Abdurahmanov was
appointed as editor-in-chief of the newspaper. Earlier he worked as the editor-in-chief of
newspaper Mulkdor. http://www.cascfen.org; January 13, 2004
Street Newspapers
United Kingdom
Glasgow has been chosen as the first world headquarters for street newspapers. The city beat
strong competition from Switzerland to land the coup, which will see a new headquarters
being created for the International Network of Street Papers (INSP) at the Big Issue premises
in the Gorbals. A package of financial support was provided by Scottish Enterprise Glasgow,
the Royal Bank of Scotland, Communities Scotland and Scottish Development International
to allow the move to happen. The new headquarters will be responsible for the development
of 54 street papers, many of which are sold by the homeless, in 27 countries worldwide. Sean
Halpin, currently managing director of the Big Issue in South Africa, has been appointed as
chief executive of the organisation and will take up his new position in March. The idea to
establish a world HQ for the INSP was first raised by Mel Young, founder of the Big Issue in
Scotland, at a conference in Prague last year. Mr Young said: "I felt the INSP had got to a
stage where it should have its own headquarters and the conference agreed with me."
The city beat strong competition from Switzerland to land the coup, which will see a new
headquarters being created for the International Network of Street Papers (INSP) at the Big
Issue premises in the Gorbals. A package of financial support was provided by Scottish
Enterprise Glasgow, the Royal Bank of Scotland, Communities Scotland and Scottish
Development International to allow the move to happen. The new headquarters will be
responsible for the development of 54 street papers, many of which are sold by the homeless,
in 27 countries worldwide. Sean Halpin, currently managing director of the Big Issue in South
Africa, has been appointed as chief executive of the organisation and will take up his new
position in March. The idea to establish a world HQ for the INSP was first raised by Mel
Young, founder of the Big Issue in Scotland, at a conference in Prague last year.
Mr Young said: "I felt the INSP had got to a stage where it should have its own headquarters
and the conference agreed with me." www.eveningtimes.co.uk
Sports Newspapers
China
What makes Titan the No.1 sports newspaper in the country. Titan Sports dominates China's
sports press and is making itself sit up overseas as well. When superstar soccer team Real
Madrid played in China last summer, coverage of the event was monopolized by one
newspaper. With 15 reporters, speaking seven different languages, the newspaper was the
main source for news of the event worldwide. The newspaper that Agence France-Presse
devoted a full length wire story to, calling it ``an important source for foreign reporters,'' was

the aptly-named Titan Sports newspaper, the giant of the Chinese sports publishing world.
Today, Titan columnist Zhou Wenyuan is a famous name among sports fans. His tart
editorials reach more than 1 million readers in China, often sparking heated debate among
sports fanatics all over the country. But Zhou remembers when neither he nor Hunan
Province-based Titan was very big. ``When I started out in 1998, I was the only staff reporter
for the then 16-page publication, which came out every Tuesday,'' recalls Zhou. ``The rest of
the articles came from part-time local reporters in major cities and overseas -- a very costeffective
practice.'' Fast-forward to 2004. The 15-year-old Titan Sports is now 24 pages and
published three times a week, dominating all its rivals in the sports publishing industry with a
circulation of 1 million-copy per edition. Zhou is no longer the only, lonely staff reporter: He
has been joined by more than 150 copy editors and reporters. Titan's annual revenue is
approximately 200 million yuan (US$25 million), according to the government Website
www.sports.gov.cn. Profits from the sports paper have been used by the Titan Sports
Publishing House to start two magazines and one weekly lottery guide over the past three
years. ``To be frank, gaining the top industry position came even more quickly than we had
originally anticipated,'' says Zhou. Titan is just one of 11 sports newspapers in China. Its
nearest rival, the two-decade old publication Soccer, is now a distant second, with barely half
of Titan's circulation. Newly established Nanfang Sports is also a player, with the tabloid style
proving popular among Chinese readers. All three publications are national, but some major
cities have their own local sports newspapers as well. In Shanghai, the Wenhui-Xinmin
United Press Group, also the sponsor of Shanghai Daily, launched the Oriental Sports Daily
prior to the 2002 World Cup. The paper reached a record circulation of 360,000 copies the
day before the city's Division A soccer Derby clash -- featuring two local teams, eventual
champion Shanghai Shenhua SVA and Shanghai International -- two months ago. Like most
domestic sports papers, however, distribution, and therefore influence, are limited to
Shanghai: The Oriental Sports is no real threat to Titan. Both Soccer and Nanfang Sports are
based in Guangzhou, which has what is probably the most competitive media industry on the
Chinese mainland. But in the last few years, many of Soccer's readers have been lured over to
Titan. Titan's foresight in developing a group of foreign correspondents, most overseas
Chinese, as far back as the early 1990s, has proved to be one of the reasons behind its success,
according to Qu Youyuan, the mastermind behind Titan's market dominance. ``The major
reason behind Titan's success is our higher-quality overseas soccer coverage,'' says Qu, the
publisher of the newspaper, in an interview with Chinese Website sina.com. The Titan
overseas correspondent network now totals more than 20, stationed in soccer hubs like
Madrid, London, Milan and Munich. It has also signed cooperation deals with European
sports media giants L'Equipe of France and Marca of Spain, further sharpening the paper's
edge. Thanks to relationships like these, Titan magazine Soccer Weekly scooped all its
competitors worldwide when it revealed England captain David Beckham's transfer to Real
Madrid from Manchester United as early as the beginning of last March. ``Chinese soccer
fans have a bigger appetite for top European action than for the domestic league,'' says Qu.
``We have fed that appetite, and benefited from it.'' Titan, sponsored by the Hunan Provincial
Sports Administration, usually dedicates half of its pages to European professional soccer,
leaving the other half to domestic soccer, basketball, weiqi (go) and a round-up of other
sports. It's not only readers who gravitate to Titan. Enthusiastic amateur sports-writers, like
columnist Zhou, a former economics instructor at Shanghai's Fudan University, as well as the
country's elite professional journalists, flocked to well-paying jobs at the paper, thus lifting
the publication's journalistic quality way above its domestic peers. Titan once paid a former
Soccer star reporter, Li Xiang, no less than 1 million yuan for covering China's National
Soccer Team during the 2002 World Cup in just three months. www.eastday.com;
http://english.eastday.com

News Agencies
International
Reuters sees 9% decline in recurring revenue for 1Q 2004. Reuters said that subscriber
cancellations in the fourth quarter of 2003 showed an improvement over the previous quarter,
extending the trend seen in the first three quarters of 2003. As a result, Reuters expects that
the decline in recurring revenue in the first quarter of 2004 will be 9% or slightly better on an
underlying basis compared to the equivalent quarter last year. Tom Glocer, Reuters Group
Chief Executive, said: "I am confident that we have now passed the inflection point in our
recurring revenue decline. While we still expect the recovery in recurring revenue to be
gradual, we are looking forward to working with our customers to build on this improving
trend." http://biz.yahoo.com; Dow Jones Business News, edited press release; January 15,
2004
International
Reuters counts on closing its French service in Canada April 30. The French service was open
since 1997. This service distributed news to media, financial markets and websites,
principally in Quebec. This measure concerns five journalists at the agency in Montreal, as
well as a stringer at the parliament in Quebec. Two journalists will remain at posts in
Montreal to serve the Anglophone market. According to a spokesperson of Reuters in New
York, this decision is a part of a vast program of the company restructuralization over several
years.�www.infopresse.com; January 16, 2004
Europe
European news agencies unite to offer information. Five leading European news agencies
have founded a consortium to create a new generation of information and new services for
mobile communication. The project MINDS (Mobile Information and News Data Services for
3G) is funded by the EC through its eContent programme. The MINDS partners are planning
to develop at least a dozen mobile information offers for European consumers, enterprises or
public authorities. The consortium consists of the co-ordinator Deutsche Presse-Agentur (dpa)
through its information service subsidiary dpa-infocom (Hamburg), and the news agencies of
Austria (APA), the Netherlands (ANP), Switzerland (sda-ats) and Hungary (MTI).
Complementary partners are the German software company CoreMedia AG, the world
publishing association Ifra, the German IT service company arvato systems and the
Fraunhofer FOKUS Institute. www.dpa.de; The EJC Media News Digest of 14 January 2004
Broadcasting Companies
International
CNN pulls plug on German-language programming. US rolling news network CNN
suspended its German language programming on January 1 due to weak ratings but plans to
expand its coverage of Germany, a spokeswoman said Monday. CNN had broadcast three 15minute
news programs daily in German since 1997 but the slot no longer fits with company
strategy, CNN spokeswoman Amelie Heinrichsdorff said. "Focus groups have shown that
CNN viewers do not expect German-language programming," she said. But Heinrichsdorff
said CNN would beef up its programming about Germany because Germans represent a full
25 percent of all its viewers in Europe, the Middle East and Africa. CNN Deutschland had
been a co-production with the German television news agency DFA in Berlin. A DFA

spokesman quoted by the Tuesday issue of Berlin's daily Tagesspiegel said that the decision
would not lead to job cuts. AFP, January 5, 2004
France
After having taken a stake in the free daily Metro, the leading French television operator TF1,
is reported to be considering a sports version, together with its subsidiary Eurosport.
According to the professional magazine Strategies, the group would also be working on a
project concerning its own television-listing magazine. It is worth noting that TV advertising
is now allowed for the Press in France. A.N.I.M.A.’s Newsletter, January 26, 2004
Saudi Arabia
A Saudi satellite news channel went on air January 11, becoming the fourth television channel
transmitting from the oil-rich kingdom… …and the first to specialize in news and current
affairs. Al-Ikhbariya will initially be on air for 12 hours a day before eventually transmitting
around the clock, officials at the station said. The channel has 46 correspondents in the
country and abroad, and in a Saudi first, counts three Saudi women among its news anchors,
they said. The new station, which will broadcast hourly news bulletins, is overseen
by the information ministry, as are the two other national channels, one of which broadcasts in
English, and a third, sports channel. Al-Ikhbariya joins a growing number of regional satellite
news channels, led by Qatar's Al-Jazeera and Dubai-based Al-Arabiya, which is Saudi-owned.
A US-funded television station targeting the Arab world is in the making, and the region will
also have access to a French international news channel due to be launched by the end of the
year. AFP, January 11, 2004
� ADVERTISING
Advertising Statistics
China
Mainland newspaper advertising income soared to a record 20 billion yuan (HK$18.8 billion)
last year… …with the Guangzhou Daily staying in the lead with revenue of 1.6 billion yuan.
Despite the impact of the Sars outbreak, total advertising income nationwide rose by 6.8 per
cent, from 18.8 billion yuan the previous year. However, advertising income for newspapers
in Sars-hit areas such as Beijing and Guangzhou plunged during the outbreak in the first half
of last year, statistics from the China Popular Newspaper Association show, after the
business, travel and service sectors all slashed advertising spending. In the first half of 2003,
advertising income for mainland newspapers totalled 6.4 billion yuan. ``With the proactive
sales tactics by some newspapers and press groups, for example, by publishing supplements,
advertising interest was generated rapidly in the second half,'' association vice-director Zhang
Yaowei said. Guangzhou Daily, with more than 1.6 billion yuan in advertising revenue last
year, was the mainland's top earner in the print media. The Beijing Evening Newspaper came
second with 900 million yuan, while the Beijing Youth Daily and Shanghai's Xinmin Evening
News were joint third, with more than 800 million yuan. In terms of media groups, the
Shenzhen Press Group led the field, generating more than 2 billion yuan in advertising
income. Established in September 2002, it includes four major newspapers - the Shenzhen
Special Economic Zone Daily, Shenzhen Commercial Daily, Shenzhen Evening News and
Jing Bao. Meanwhile, the Southern Press Group said its various newspapers experienced
different degrees of growth in advertising income last year. Advertising income for the

Southern Daily grew by more than 10 per cent, while the New Express Newspaper and the
Southern Metropolitan News saw growth of more than 80 per cent last year compared with
2002. In early January, the chief editor of Southern Metropolitan News was detained for
questioning by Guangzhou authorities over its reporting of a suspected Sars case but was
released eight hours later. Zhang, an advertising executive at the Jiefang Daily Group, said
total advertising revenue grew about 22 per cent to more than 1.6 billion yuan last year. The
group's flagship newspaper is the Xin Wen Chen Bao. Zhang attributed the growth to the
country's media reforms that has led to the commercialising of most of the mainland's print
media, as well as aggressive spending by car manufacturers and property developers. Over the
past six months, 677 newspapers and magazines published by various party and government
organs have been closed down as a result of reforms, leading to soaring advertising revenue
for the remaining newspapers. Zhang said advertising spending in newspapers by car
manufacturers and property developers grew by 80 per cent and 40 per cent respectively last
year although he did not provide detailed figures. Separately, advertising income at China
Central Television (CCTV) grew by 17 per cent to 7.53 billion yuan last year. CCTV's
advertising revenue last month was 999 million yuan. As of December, the state-owned
broadcaster had enjoyed 30 consecutive months of advertising income growth.
www.thestandard.com.hk; January 16, 2004
Finland
Advertising in the Finnish media experienced 2.5% growth last year. A total of EUR 1,079
million was spent on advertising in 2003, making it perhaps the best year for the advertising
business since the record year of 2000. The figures are among the results of a study by TNS
Gallup. Riitta Lausteela of TNS Gallup nevertheless cautions against any premature
celebrations. At a press conference in Helsinki on Wednesday, she noted that the volume of
advertising has not really grown, and the increase in cash flow is the result of higher prices.
One of the reasons given for the surge in advertising last year was the Parliamentary election;
about EUR 8 million was spent on political advertising. Without the elections, growth in
media advertising would have been just 1.7%. This year is expected to be positive for Finnish
advertisers. A recent barometer forecast indicates moderate growth ahead. Furthermore, there
will be two elections in 2004: the election for the European Parliament in the summer, and
municipal elections in the autumn. They are expected to increase total spending on advertising
by EUR 8 million. Finnish newspapers have maintained their strong position in Finland's
advertising market. A total of 49.6% of Finnish advertising was published in Finnish
newspapers last year. They collected EUR 535 million of all of the money spent on
advertising. Their total market share has declined marginally, however, by 0.2 percentage
points. Television, which is in second place, increased its market share by 0.1 percentage
points to 19.2%, totalling EUR 207 million. Local radio stations have significantly increased
their advertising market shares. Spending on electronic advertising as a whole grew by 4.5%
to 272 million euros. The market share of magazine advertising has declined by half of a
percentage point to 16.5%. Of the businesses buying advertising time and space in the media,
the greatest increases were in telecommunications services (18.1%), and motor vehicles
(13.9%). Other sectors increasing their advertising budgets include the food industry (4.5%),
travel and transport (4.8%), and pharmaceuticals (1.4%). Among those reducing their use of
advertising were financing (14.8%) and information technology (13.5%). www.helsinkihs.net;
January 28, 2004
France
Advertising expenditure in the press increased by 1.2 percent in 2003… …according to TNS
Media Intelligence. The advertising expenditure in press totals at 5,696 million euros.

Switzerland
The volume of advertising in the Swiss press has declined by 11.4% in 2003… …according to
the Research Institute of Advertising Media (REMP). The decline has marked 7.1% in French
newspapers and 13.7% in German ones. The decline was marked especially with job
advertisements (-32.4%). In 2002, advertising in the Swiss press had already declined by
13.2%. In this difficult economic climate, newspapers continued to disappear in Switzerland
in 2003. Publishing of eight titles was stopped. The statistics of REMP show that economic
and financial dailies have particularly suffered in 2003. In this category, the volume of
advertising declined by 21.3%, after the 6.3% decline in 2002. AFP, January 14, 2004
Advertising Forecasts
Global
Aegis, owner of Europe's largest media buying group, raised its expectations for the global
advertising market next year but said Europe would continue to lag the rest of the world in
2004. The company behind the Carat media-buying network said it expected global
advertising to grow by 4.7% next year, up from a prediction of 4.3% made in September.
Growth for the US was revised from 4.3% to 4.7%, with Asia increasing from 5% to 6%.
However, Aegis warned that Europe was still dragging back the global recovery, with its
predictions for the continent's performance next year slipping from 3.7% to 3.6%. Doug
Flynn, chief executive of Aegis, said he expected "modest growth" in the UK, with television
increasing by about 3% and newspapers starting to turn the corner. Mr Flynn said the main
factor behind the advertising recovery was the return to health of the corporate sector, which
slashed marketing and ad budgets following the stock market slump three years
ago. http://media.guardian.co.uk; The EJC Media News Digest of 6 January 2004
Global
Advertising market growth forecasts - 2004
Europe U.S. Asia World
Aegis +3.6% +4.7% +6% +4.7%
Zenith Optimedia +3.7% +5.1% +5.1% +4.7%
Universal McCann +6.9% +5.8%
Havas (LBS) +4.2%
Merill Lynch +5.8%
This should only be considered as a trend indication, since the concept of "advertising
market" may be very different from one organization to another. A.N.I.M.A.’s Newsletter,
January 12, 2004
Europe
All forecasters have agreed to give a "plus" sign to the European advertising market in
2004… …and there are good reasons for that. The beginning of the year is traditionally the
period for predictions. Most of the leading international media buying groups have issued
their own feelings concerning the outlook for the coming year. All of them agree on the fact
that the recovery of the advertising industry will definitely happen in the US. They also
observe that most of the growth will come from new countries in the advertising world, like
China or Russia. There is also a common feeling that the European growth rate will remain

under what is forecast in the US. The American advertising market should increase between
4.7% and 5%, while only +3.7%/+3.6% is expected in Europe. But, the common comment is
clear: after a flat 2003, the European market will be back on the rise in 2004. * The "even
year" effect * There are some structural reasons for this return to growth. First, 2004 is an
"even" year. Which means, Olympics (Summer) and Football (European Championship).
Both should generate extra revenues for television. This should specially be true in the UK,
where +3/+4% is expected for the media, considering the recovery of ITV and the BBC being
more committed to its public service mission. This year, there will be some political strong
events: the US Presidential, of course, but also European Parliament elections. It must be
noted that the influence of political events on the advertising market is rather different from
one country to another. Every one knows it is always a bonus for the American local markets.
However, it is generally considered to be a negative factor in some other countries like
France, where political advertising is not allowed on broadcast media and is considered as
pollution for outdoor panels. When one knows that there will also be local elections in this
country in March, it is considered as a handicap for the French market. Some purely local
events may exert great influence. In Spain for instance, the Spanish Advertisers association
predicts that Prince Felipe's wedding on May 22nd will have a highly positive effect on
advertising investments, since it will greatly increase the audience of all media. So the overall
forecast for Spain is extremely good. * Corporate advertising * But according to Aegis, the
four year effect is not expected to represent more than 0.9% of the global growth. Most
important is the return to financial heath for companies. A safer situation on the Stock
Exchange means more freedom for investments in advertising. Corporate advertising should
be a key factor for advertising market growth. If telecommunications keep playing a major
part in advertising expenditures, together with the strong development of broadband suppliers,
banks and insurance companies should also be among the most dynamic sectors, especially in
Germany. But there are also financial crashes… In Italy, Parmalat was investing euro 45
million in advertising. Those are seriously jeopardized. Adding to legal uncertainties, it is
another reason for the lack of visibility concerning this country. Will Rete 4 keep terrestrial
broadcasting? Will RAI 3 keep broadcast advertising? These kinds of legal modifications may
have direct effects on advertising. It is the case in France, where the press and book
publishing are now allowed to advertise on TV. No doubt this will have a global positive
influence on the investment level, even if many of those new budgets might be structured as
barter deals. Even if, for the time being, restricted to cable and satellite channels, the opening
to TV advertising for retail companies is also a positive factor in this country. Another sector
that should benefit from the new laws is the pharmaceuticals, With an aging population and
many European countries cutting health expenses, self-medication is expected to be on the
rise. Advertising Increases for this sector too. A good year for television, slow recovery for
the magazines and marginal return to growth for the newspapers, with better results for the
classified when the economy recovers. Global European very positive trend for Outdoor and
radio in line with the consumption recovery. These are the main expected trends for this new
year. Not forgetting the Internet, which should remain well above the market average with
advertisers planning to give a priority to interactive marketing. There are plenty reasons for
hope in 2004. And if we certainly have known better years, compared to the terrible period we
have just crossed, the simple idea of renewing with growth sounds pretty encouraging.
A.N.I.M.A.’s Newsletter, January 12, 2004
United States of America
NAA: Newspaper ad spending ready for takeoff in 2004. The amount of money marketers
spend on newspaper advertising is expected to increase by about 4.1 percent in the coming
year, according to the 2004 forecast for the newspaper business, published in the January

issue of Presstime magazine. Presstime is the flagship publication of the Newspaper
Association of America. In the article, “Ready for Takeoff,” NAA Vice President of Research
and Business Analysis James Conaghan compares the burgeoning economic and advertising
recovery to a jumbo jet rumbling down the runway: “The good news for 2004 is that both the
economy and the advertising marketplace now have enough thrust to get back into the air.”
Classified ad spending, which has been dragged down by the weakness in the recruitment
category, is expected to increase by 4.5 percent. National and retail ad spending in
newspapers, which was strong throughout 2003, should increase by 6.5 percent and 3 percent
respectively, according to Conaghan. In addition, optimism in the employment sector is good
news for newspapers, writes Conaghan, and should bring gains in recruitment ad dollars “in
the upper single digits for the full year.” “Even as the economy started to show the first signs
of turning around last year, the jobless nature of the recovery meant that all employment
classifieds lagged behind,” said John F. Sturm, NAA president and CEO. “Whether we’re
talking about newspapers, online postings or the bulletin board at your neighbourhood market,
there just weren’t many jobs available. Now that the jobs are returning, classified publishers
will benefit, and newspapers have been as innovative as anyone in positioning themselves to
capture much of that business.” In his article, Conaghan comments on the following
categories: * Real estate advertising. If interest rates begin to float upward, the housing
market is likely to relinquish its position as the economic growth leader. While real estate
advertising should continue to be strong, it may not reach the level of percentage increases of
the past three years. * Auto. While there is some concern that fewer people will be shopping
for a new vehicle in 2004, a number of new models are being launched and marketed, which
should result in more ad dollars in circulation. * Retail. Retail advertising stands to benefit
from an improving economy and more job seekers returning to work. Preprints and smaller
retail categories should lead the way. * National. In a year when the Olympics and the
presidential election will likely crowd some advertisers out of the television market,
newspapers should benefit from limited broadcast inventory. Categories such as travel and
telecommunications should continue to do well. http://members.whattheythink.com;
January 12, 2004
United States of America
Morgan Stanley raised its newspaper industry view to "attractive" from "cautious," citing an
expected surge in help wanted ads in 2004 coupled with accelerated national advertising.
Morgan Stanley said, "We believe increasing prime time TV ratings erosion may turbo-charge
market share gains for the newspapers." For 2004, newspapers will slightly exceed the 9% to
10% earnings growth expected for the S&P 500, according to Morgan Stanley. The research
firm noted that a larger-than-expected surge in national advertising would benefit to The New
York Times Co., Dow Jones and Tribune, all of which Morgan Stanley rates at "overweight."
Knight Ridder, however, has among the highest exposure to retail advertising, a trouble spot,
in Morgan Stanley's view. www.forbes.com; January 7, 2004
Newspaper Advertising
France
Since January 1, three out of four advertising sectors previously forbidden to advertise on TV
- press, book publishing and supermarkets – access the small screens. Le Monde has launched
its advertising on TV. Over 60 twenty-second spots with the slogan "the magazine that
changes the sense of your weekends" will be broadcast on five major channels (France 2,
France 3, France 5, Canal + and TF1) and 90 spots on news channels. The TV spot costs
600,000 euros. The TV advertising of Monde 2 is a part of a 3 million euros campaign,

including over 8,000 bus shelters, 3,000 kiosk posters, over 30 ads in 14 titles, and over 250
twenty-seconds spots on 9 radio stations. AFP, January 14, 2004
Advertising Design / Creativity / Campaigns / Awards
United States of America
DallasNews.com honoured with NAA'S Digital Edge Award for best advertising program.
DallasNews.com, the web site affiliated with The Dallas Morning News was presented with
the Digital Edge Award for Best Advertising Program, Circulation more than 250,000, from
the Newspaper Association of America's New Media Federation yesterday. The "Edgies"
were presented during Connections®2004, NAA's annual interactive-media conference
recognizing the newspaper industry's outstanding online editorial projects and sales programs.
DallasNews.com's winning entry highlighted a local automotive dealer's Precision
Advertising Campaign that achieved dramatic results in consumer response both online and
offline by increasing awareness of the dealer and its inventory among consumers who were
local, ready to buy, and willing to act now. Precision Advertising Solutions allows advertisers
to efficiently deliver their messages to select audience profiles based on registration and
behavioural data. In addition to providing contextual advertising within the automotive
section of DallasNews.com, targeted banners were delivered to customers who had visited the
automotive section within the past 30 days. The response rate among the target audience was
a stunning 7.7% as compared to the national average of .33%. In addition to increasing the
advertiser's reach and the campaign's effectiveness, targeted ads doubled the number of credit
applications the dealership received, and increased the number of online searches by 17%.
The dealership reported that the DallasNews.com campaign generated 44% of the total calls
into the dealership at a time when eight promotions were running in other media.
"Belo Interactive is honoured to receive one of interactive media's highest awards," said Eric
Christensen, vice president and general manager of Belo Interactive. "We continue to be at the
forefront of behavioural targeting capabilities, and we take immense pride in knowing that our
colleagues selected us for this award." The Digital Edge Awards, founded in 1996, honour
online publishers from newspapers of all sizes that expand the reach and enhance the story
telling and advertising capabilities of the traditional-media news service. This year's winners
were selected from 190 entries in eight categories - Best Overall News Site, Most Innovative
Use of Digital Media: Features/Enterprise, Best Entertainment Site, Most Innovative Visitor
Participation, Best Automotive Site, Best Employment Site, Best Real Estate Site and Best
Advertising Program. "This year's award winners again show the vitality and continued
commitment to innovation at online newspapers in markets large and small," said Lisa
DeSisto, incoming president of NAA's New Media Federation and vice president/general
manager of New York Times Digital's Boston.com. Thirty digital-media directors, editors and
producers, along with advertising experts and industry analysts, served as judges, each
assigned to a category based on their professional expertise. Belo Interactive is part of Belo
Corp., one of the nation's largest media companies with a diversified group of market-leading
television, newspaper, cable and interactive media assets. NAA is a non-profit organization
representing the $55 billion newspaper industry and more than 2,000 newspapers in the U.S.
and Canada. Press Release; Belo Interactive, Inc.; http://biz.yahoo.com; January 22, 2004
Advertising Agencies – Commission Rates
Norway
The long-standing contract, which allowed newspapers to pay media agencies up to 6 percent
in commission and bonuses, has been scrapped following a competition commission ruling.

The Norwegian advertisers; association ANFO – worried by the potential bias of such an
arrangement – took its case to the authorities in a bid to “clean up” the “misleading” fee
structure, said Bjorn Hauge, ANFO director. Its actions are part of a wider fight to abolish the
commissions existing between other media and agencies. January 2004 marks the start of the
commission-free modus operandi. But in reality, newspapers and newspaper groups across
Norway are now sitting down with agencies to thrash out individual agreements. “Everyone
knows the basic commission was 3 percent, so all the deals will be done around that,” said
Are Kvaerk, director of media research, TNS Gallup.
Sales Staff / Incentives / Training
United Kingdom
Telegraph Newspapers is hoping to boost its sales operation by appointing a strategy
executive to work with each agency sales team in its advertising department. The shake-up,
instigated by group sales director Chris White-Smith, will see four commercial developments
specialists working with the three newspaper agency sales teams and the magazine section.
White-Smith's restructuring is his first major change since taking on group sales responsibility
in the wake of former managing director of sales Len Sanderson's departure in October. "By
embedding commercial development experts within the agency sales teams we will ensure
that strategic planning, partnership and development ideas are introduced as early as possible
in the sales process," Mr White-Smith said. Jonathan Wilson will become display sales
director. www.mediaweek.co.uk; The EJC Media News Digest of 8 January 2004
Print As Advertising Medium / Ad Effectiveness
Brazil
Newspaper advertising reaches those who make decisions about what to purchase…
…according to a new survey, “I Want to Buy -- the Relevance of the Means of
Communication in the Purchasing Process,” conducted for the Brazilian Association of
Newspapers (ANJ). The survey on the attitudes of buyers at the time of purchase, which was
supported by ANJ and 17 affiliated newspapers, found that individuals who are about to
purchase a product most often turn to newspapers when seeking information. The study,
conducted by Ipsos Opinion and Ipsos-Marplan, involved two simultaneous surveys of 960
people who had read the newspaper over the previous three months and 195 people who had
read the newspaper over the three months and made decisions regarding purchases within
their companies. Contact: Fernando Martins, anj@anj.org. The Newspaper Associations
Online Forum, a bulletin for the exchange of information and ideas among Member
Associations of the World Association of Newspapers, No. 18, January 2004
� CIRCULATION
Weekend / Sunday Editions / Supplements
France
Le Monde launches its weekend supplement, with a revised Monde 2, on January 17.
Le Monde dated Sunday-Monday will be sold at 2 euros (launching price; later 2,5 �). The
circulation of the weekend edition in France was 352,728 copies in 2002-2003. Over 600,000
copies of the first revised edition will be printed, at total expenditure of 5 million euros. Two

objectives are prevailing, according to François Siegel, co-editor-in-chief: "To increase the
circulation by over 30,000 copies in the first year, over 50,000 in the second, and to transform
the public success of the monthly Monde 2 into the weekly Monde 2." Launched in November
2000, the Monde 2 was a monthly combining the texts and pictures of Le Monde. It has
achieved the circulation of 130,000 copies. AFP; http://actu.voila.fr; January 13, 2004
* * * * *
The sales of the first revised weekend edition of le Monde almost doubled. In greater Paris,
the sales have increased to 86,000 copies, that is 68% more compared to the previous
weekend. On the national scale, the total estimated sales range between 275,000 (+90%) and
280,000 copies (+93%). AFP, January 21, 2004
France
It is in the weekend market where the circulation war is raging. Le Monde has decided to turn
its monthly spin-off Le Monde 2 into a weekend supplement, while l'Equipe, the sports daily,
has totally re-launched its weekly magazine. Le Figaro has re-acted with an "à l'italienne"
promotion, offering classic movies on DVD together with its weekend issue for an extra 3
euro. A.N.I.M.A.’s Newsletter, January 26, 2004
Spain
The weekly supplement of the Grupo Prisa y Zeta, “Dominical”, has initiated a revision of its
content this year. The “Dominical” is jointly published for the Grupo Zeta y Prisa and is
distributed every weekend within 26 periodical titles. http://gacetadeprensa.com; January 12,
2004�
Special Supplements / Sections / Editions
United States of America
The Journal Times, Wisconsin, suspended an experiment in Spanish-language publication
after receiving many complaints and some subscription cancellations from English-language
readers… …who objected to the new Spanish-language content in their daily newspaper. The
four-day-a-week pages, El Mundo Latino on Wednesday, Thursday and Friday, and
Saturday's Su Comunidad, were designed to better serve our Hispanic readers and
acknowledge a growing market for news, information and advertising in Racine County.
The newspaper recognizes its responsibility to serve the entire community, but it would be
difficult to characterize the decision to cease publishing the pages in any way but a step
backward from that goal. We remain committed, however, to providing news and fostering
business within our growing Hispanic community, and we are determined to find a different
way to accomplish the goal. In all likelihood that will involve a separate Spanish-language or
bilingual publication as a newspaper insert or distributed through newspaper racks and other
outlets in the community. And now that we've established the capability to publish in two
languages, we are working on prototypes for just such a stand-alone publication. In a way,
that is a much more typical format for serving a large segment of foreign language readers
with news and advertising, both in our current day and in the past. Indeed, Racine has a long
history of providing news and information to its many immigrant communities in their own
language over the decades. Each new tide of immigrants to Racine - German, Danish,
Norwegians, Bohemians - brought with them their desire, familiarity and affection for their
own language and so used those foreign language newspapers of the past to help ease their
transition to America. Those newspapers were an important chapter in the history of the
assimilation of virtually all groups of new Americans. It was our intent with the El Mundo
Latino and Su Comunidad to continue that tradition, albeit in a different way, and to further

assist our new Hispanic neighbours learn their English. That's why we designed our pages so
that Spanish-language stories were mirrored by English translations or at least capsule English
synopses. We also wanted to help foster a greater appreciation of the shared history and the
common futures we all experience in this nation of immigrants. The Journal Times will
continue to reach toward that goal. www.journaltimes.com; January 26, 2004
Regional Editions
India
Dow Jones & Co. Inc. will launch a new regional edition of The Wall Street Journal in India,
together with the publisher of the Times of India newspaper. New York-based Dow Jones will
own a 26 percent stake in the venture, in keeping with the limits set by India's new rules on
foreign ownership of media assets. Bennett Coleman & Co. Ltd., publisher of the Times of
India as well as The Economic Times in India, will own the remaining stake. The India
edition, set to debut later this year, will be the fourth international edition of The Wall Street
Journal, Dow Jones' flagship newspaper with a U.S. circulation of more than 2 million. Dow
Jones also publishes the Asian Wall Street Journal, as well as versions in Europe and Latin
America. The Journal's international editions are aimed at local business readers and
international travellers and include content from the newspaper's main U.S. edition. Bennett
Coleman, India's oldest and biggest media company, recently partnered with BBC Worldwide
to publish specialty magazines in India. Indian journalist Suman Dubey will be the editor of
the newspaper and it will be published five days a week. The Wall Street Journal already has
two regional editions: "The Asian Wall Street Journal" and "The Wall Street Journal Europe."
The paper is also published on the Internet. www.reuters.com; AFP; January 22, 2004
Free Newspapers & Pick-Up Publications
Europe
Associated Newspapers has worked with Metro International to run major pan European
campaigns for high profile advertisers. Two former newspaper adversaries have quietly
settled their differences and are working together to provide advertising opportunities for
clients aiming to hit commuters across Europe. Media Week has learned that, in recent
months, Associated Newspapers, publisher of the Metro titles in the UK, has worked with the
Swedish pioneer of the free commuter newspaper concept, Metro International, to run major
pan European campaigns for high profile advertisers. The two have already brought in more
than £1.7m, as a number of clients – including Vodafone, Electronic Arts, Rank Xerox and
the Greek Ministry of Culture – have taken advantage of the deal, which, if all six titles in the
UK and 21 editions across Europe are included, gives advertisers access to about 10 million
readers. Justin Farnan, sales director at Associated’s Metro, said: “This is a common-sense
agreement providing a great opportunity for clients to tap into a hard-to reach and highly
valuable audience across Europe. By teaming up with Metro International, we can offer our
clients a broader geographical solution which is exciting and unprecedented in terms of scale
and coverage.” Metro International vice-president, global ad sales, Lawson Muncaster added:
“We’ve been successful in attracting prominent European advertisers because we deliver a
highly desirable, young urbanite audience across Europe every day and because, like Metro
UK, we’re committed to constructing advertising solutions that go beyond traditional
newspaper print options.” The informal case-by-case relationship came about following a
number of discussions last year between the two groups, which had been involved in a High
Court battle over the title of MI’s free newspaper in Newcastle. The Swedish company
wanted to call the new title Metro, but was forced to rename it Morning News in 2000. It

folded soon after, ending the Swedish company’s interest in the UK. The new alliance will be
a blow to Associated rival Richard Desmond, who is also believed to have been in talks with
MI since he announced his plans for a free paper in London. www.mediaweek.co.uk; January
8, 2004
France
Another new boss for «20 Minutes». Three presidents in less than two years! After Francis
Jaluzot, who managed the launch of the free daily 20 Minutes, Hervé Pointillart, appointed 15
months ago, was replaced yesterday from his post of president of 20 Minutes France, the
publisher of the newspaper owned 50-50 by Ouest-France and the Norwegian group
Schibsted. The new boss Pierre-Jean Bozo is a 47-year old former director general of the NRJ
Group. Prior to that, he jointly managed the Libération. Pierre-Jean Bozo plans for «the
thematic and geographical development» of the free newspaper, which is not always available
in the country, unlike its competitor Metro. http://www.liberation.fr; January 13, 2004
France
Metro launches 30th edition and becomes second largest national newspaper in France. Metro
International S.A. (‘Metro’), the international newspaper group, announced the launch of its
30th edition. The new edition was distributed for the first time in the city of Toulouse, which
is France's sixth largest city and one of France's leading economic and technological centres.
The Metro newspaper is already distributed in the three largest French cities -- Paris,
Marseille and Lyon. 470,000 copies of Metro are now distributed in France each day, making
Metro the second largest national newspaper in France. The French newspaper advertising
market in France was reported to be worth US$ 1.4 billion in 2003, making it the third largest
market in Europe. The four cities together represent 22.5% of the French population and
Metro attracts over 1.5 million daily readers. The new edition was distributed by hand and
from racks at strategic points in the City centre and the surrounding region this morning and
has a target circulation of 30,000 daily copies. The distribution covers a target population of
800,000 inhabitants and includes over 100,000 university students. Leading French television
broadcaster Television Francaise 1 S.A. recently acquired a 34.3% holding in Metro's French
operations. Pelle Tornberg, President and CEO, commented: ``This development mirrors
similar launches in other territories where we have added new city editions in existing Metro
markets. The new launch in Toulouse increases our reach in one of Europe's largest
advertising markets and establishes Metro as France's second largest national newspaper.''
Metro is the world's largest newspaper, publishing and distributing 30 Metro editions in 16
countries in Europe, North & South America and Asia. Metro attracts 13 million daily readers
in more than 60 cities around the world with an easy to read combination of headline local
and international news and information. Metro International S.A. `A' and `B' shares are listed
on the Stockholmsborsen `O-List'. Press release by Metro International; http://biz.yahoo.com;
January 19, 2004
France
Free press in France
Title Circulation Readership
20 minutes 450,000 1,300,000
Metro 450,000 1,266,000
A nous Paris 400,000 1,100,000
Source: IPSOS and TNS Sofres; Les Echos, January 14, 2004

Spain
“El Universo” is a new free daily to be published by the Grupo Siglo XXI and distributed in
the centre of Madrid, where “Metro” and “20minutos” are already installed. “El Universo” of
the tabloid format will consists of 32 pages with the local, national and international news. El
Grupo Siglo XXI already publishes in Madrid editions of Diario Noroeste and Diario
Suroeste. http://gacetadeprensa.com; January 14, 2004
United Kingdom
Rupert Murdoch's decision to follow the Independent and go tabloid has boosted sales of the
Times by 14,000 copies a day… …according to the first official circulation figures. It is the
only broadsheet, apart from the Financial Times, to increase its number of readers in
December, which is traditionally a poor month because of readers' lack of interest in news
between Christmas and New Year. However, industry sources say that between Monday and
Friday, when the tabloid is available, the actual increase was closer to 35,000. Initially the net
increase in sales of the paper was so encouraging the paper doubled its tabloid print run to
150,000. On one day last month, Friday December 5, the tabloid helped to boost the paper's
overall circulation by a mammoth 69,000 copies. But this effect has not lasted throughout a
month when many people were more interested in unwrapping presents and watching
Christmas TV than in newspapers. The decline in sales experienced by all papers in the last
week of December dampened the overall rise to 14,000 copies. This was still a respectable
month on month increase of 2.29% to a circulation of 636,331 - this compares with a drop in
sales of 1.45% between November and December in 2002. The Times is gathering pace in the
battle of the broadsheet tabloids, selling just 4,500 fewer copies of its compact version than
the Independent in December, even though the tabloid Independent was on sale throughout
much of the country and the Times was only available in London. The circulation of the
Times tabloid, which is due to go on sale in Manchester, Liverpool, the Midlands and the
south-east next week, was 54,121, compared with the Independent's tabloid version, which
sold 58,643 copies. The Independent was down 1% month on month to 237,816, while the
Telegraph dropped in circulation by 0.5% over the same period. The worst broadsheet
performer month on month was the Guardian, which dropped 3% to 375,073. However,
compared with last year's figures the Times was the worst of the broadsheet bunch. Its
circulation was down by 6%, while the Independent boosted its sales by nearly 9% compared
with December 2002. Mr Murdoch has toyed with the idea of a tabloid Times ever since he
bought the paper in 1981, but said he resisted because of the welter of criticism he would have
received for "debasing" the reputation of the revered title. "I'm glad the Independent has gone
ahead because now we can try to do it without any problems," Mr Murdoch said when
announcing the decision to launch a tabloid twin. George Brock, the managing editor of the
Times, thanked the Independent for "mowing and rolling the lawn" for the Thunderer. The
Times also gave away more copies for free or at a discounted price than any other daily
broadsheet in December 2003, "bulking" 42,000 copies, compared with 32,500 giveaways on
the Independent, 23,000 on the Telegraph, 22,000 on the Financial Times and 15,000 on the
Guardian. Early estimates suggested the net gain to the Times as a result of the tabloid was
between 20,000 and 30,000. Informed sources suggested the launch of the tabloid Times
boosted its circulation by 34,000 on its first day of sale, Wednesday November 26.
http://media.guardian.co.uk; January 9, 2004
United Kingdom
Independent drops Saturday broadsheet. The Independent is ditching its broadsheet format
altogether for one day a week and is turning fully tabloid on Saturdays from the end of
January. At present the tabloid edition of the Independent is only available between Monday

and Friday, alongside a twin broadsheet version containing exactly the same stories. Bosses at
the paper have now decided to bring out a single tabloid edition at the weekend from January
31, proving the smaller size format is not only aimed at commuters. "It is clear from our
research, and from reader feedback, that the compact edition has a value and desirability far
beyond the commuter population," said chief executive Ivan Fallon, promising "a modern
newspaper that is in tune with modern lifestyles". The move is bound to increase speculation
that the Independent is planning to go completely tabloid to avoid the costly business of
bringing out dual editions. However, there are still a large number of readers who prefer the
broadsheet edition and, were the paper to make the switch entirely, it could risk losing some
of them. Saturday's new-look Independent will comprise five sections including a news and
sport section, the Saturday magazine, TV and entertainment listings supplement the
Information, an expanded personal finance section and a new travel magazine, Traveller. The
tabloid Independent launched in London on September 30, and was quickly extended to other
parts of the country including the north-west and much of the south coast. Last month the
tabloid sold an average of 58,000 copies every weekday, and it hopes to sell even more in
January after going on sale nationwide at the end of last year. The Times followed the
Independent's example and launched a Monday to Friday tabloid in the M25 region in
November, and in December 2003 it sold 54,000 copies a day. On Monday the Times
extended its reach, as the tabloid went on sale in Manchester, Liverpool, the Midlands and the
south-east. One of the main problems involved in bringing out a tabloid version of a
broadsheet is the extra print capacity required. The Independent struck a deal with its existing
print partner, Trinity Mirror, to use its extra capacity, and the Times is looking at how it can
increase the print run of its tabloid. Launching a tabloid edition helped to boost average daily
sales of the Independent by 8.7% in the year to December 2003. http://media.guardian.co.uk;
January 15, 2004
United Kingdom
Free newspaper Metro is set to expand into five new cities in a move that will push its
circulation above the 1m mark. The paper is already given away to commuters in eight major
cities in the UK, and is set to start distribution in Nottingham, Derby, Leicester, Bristol and
Bath. The additional copies will boost the success story already enjoyed in London,
Manchester, Birmingham, Leeds, Sheffield, Newcastle, Glasgow and Edinburgh. The
publisher, Associated Newspapers, will work with Northcliffe Newspapers and its local
centres for the expansion - which could see the new editions published by early summer.
Northcliffe managing director Kevin Beatty said: "We've been talking to our colleagues at
Metro for some time about the potential for putting it into the market in the East Midlands and
Bristol and we are now pushing ahead with that. "All of our newspapers in those areas are
afternoon papers and get to a particular demographic. "This is a morning newspaper with a
particular type of reader - typically a male in full-time employment using public transport."
Metro managing director Steve Auckland said the paper proved popular because it was
apolitical, gave the news in sound bites and was a 20 minute read for busy commuters.
He said he was looking forward to working with Northcliffe, and was enjoying the
relationship that had developed during the project. He said: "Metro is geared towards that
young market, where the average age of readers is 32. "From a consumer point of view it
comes straight at the audience - we'll soon see people walking about with the paper."
Metro was launched in March 1999 as a free, colour newspaper for morning commuters.
It was originally only available in London, but has spread into seven further major cities with
combined distribution of 826,921 copies every weekday morning. The editorial emphasis is
on concise, informing stories presented in an easy to read format, designed specifically for the
morning commuter. It provides a mix of national and international news set alongside local

information such as listings and travel. Associated's homework shows Metro readers are
"time-starved individuals" who are increasingly difficult to reach using traditional media.
www.holdthefrontpage.co.uk; January 21, 2004
United States of America
The new publisher of the Journal Newspapers Inc. hinted the regional newspaper company
would start giving away papers in the Maryland suburbs of Washington… …as it does now in
Virginia. "There are so many other media that are free. You now have to compete with them,"
said James McDonald in a phone interview yesterday from the company's Alexandria offices.
"If you want to keep readership up, free is the way. It's really the model of the future." The
company began handing out the Northern Virginia edition free to Metro riders in the summer.
But McDonald said he hasn't decided whether to give away papers in the Maryland counties
of Montgomery and Prince George's. The company has a press run for both states of about
150,000 papers. McDonald bought an undisclosed stake in the company this month and
begins overseeing the operation Feb. 2. "While I have a direction in mind, I want to have the
full picture," he said. "It's too early to say exactly what I'm going to do in any area."
McDonald also said he doesn't soon plan to open another front in the competition with The
Washington Post Co.'s free paper, the Express, by starting an edition in the District. The
Express launched in August and is given away at Metro stations in the District and the
suburbs. "I won't say we'd never do that, but right now we're going to focus on what we've
got," he said. McDonald said he would continue former Journal publisher Ryan E. Phillips's
strategy of targeting Washington's affluent suburbs, at least for the time being. The Post
started the Express in part to head off competition from McDonald's former employer, Metro
International SA, a Luxembourg-based company with 30 free papers in 16 countries. The
company hands out its papers free at mass transit stations. The Express had a "small loss" in
the two months since its launch in August, The Washington Post Co. reported for its third
quarter, ending Sept. 28. McDonald wouldn't say whether the Journal papers are profitable or
disclose other financial information on the private company. The Express and the Journal
papers print short news stories tailored to distracted commuters. Metro has papers in
Philadelphia and Boston, and until recently McDonald had been working in its New York
office on a plan to publish the paper in more North American cities, including New York and
Washington. Previously he had published the company's Philadelphia paper. Former Journal
publisher Phillips, meanwhile, remains on the Journal board and says his family still owns a
controlling stake. The outcome of the fight between the Post and the Journal for area
consumers of free newspapers is impossible to predict, said newspaper-stocks analyst John
Morton of Morton Research Co. in Silver Spring, but may come down to which company is
willing to spend more. "I always tend to put my money with the company with the deepest
pockets," he said. The Post's Express tabloid last month began phasing in a 25,000-paper
bump in its print run. In a few weeks, it will print 150,000 copies, said Christopher Ma, a
Washington Post Co. vice president who is the Express's publisher. "We view this as a longterm
proposition, and we're in it for the long haul -- competition or no competition," Ma said.
The Journal has undergone a series of changes in recent years. In 2002, the company shut
down its offices in Prince George's and Montgomery counties and fired most of the paper's
staff in those bureaus. The employees filed a complaint with the National Labour Relations
Board that ended with a money settlement. www.washingtonpost.com; January 23, 2004

Readership & Marketing Research/Surveys
United States of America
Young adults aren't apathetic about election news, but fewer of them get their news from
reading the newspaper… …reveals a poll conducted by the Pew Research Centre for People
& the Press. The AP reports that young adults are getting their news from the Internet and
comedy shows like Comedy Central's The Daily Show and Saturday Night Live. Thirteen
percent of those polled last month cite the Internet as their main news source, doubled from
the year 2000. And the percentage of young adults who occasionally get their election news
from the Internet went up to 33% from 24% in the same period. Whereas 39% of those polled
in 2000 said they learned about the campaign from nightly network news, those polled now
say that the Internet, comedy shows and network news are equal sources of campaign news.
Meanwhile, newspapers slipped as a regular source of election news from 40% in
2000 to 31% in the latest Pew poll. www.editorandpublisher.com; The OnlineJournalism.com
Newsletter for January 13, 2004
Promotion to Increase Circulation / Games / Gifts
Uganda
The “Bukedde” newspaper launched an ambitious 8-week “Bingo” competition in a move to
boost circulation and attract advertisers. Each week, readers of the vernacular “Bukedde”
newspaper stand to take home the equivalent of US$1,250, simply from buying an issue of the
daily while playing the card game “Bingo”. �This is a promotional strategy that has paid off
for “Bukedde”, printed in Luganda, a language spoken by 25 per cent of Uganda’s population.
In the first week alone, its publishers saw a 23 per cent increase in street sales. The newspaper
is also expecting a 10 per cent increase in advertising due to the competition.�The game,
called Bingo, involves matching up a series of numbers published each day in “Bukedde”
with cards that have been distributed in the newspaper. Each card includes a total of eight
games, allowing players eight chances in total to become a �winner. Each day, the newspaper
publishes a new number, and at the end of the week, a few lucky players will take home the
large cash prize. Over the two–month period, “Bukedde” readers have a chance of winning a
slice of �US$10,000. Tom Wasswa, circulation manager for “Bukedde” and its four sister
newspapers, speaks to RAP 21 about the logistics of launching such an ambitious strategy.
“This game is very effective, but you need to make sure your objectives are clear before you
set out. It is a good game as it is chance-based. Readers believe in it. But it also needs lots of
organisational skills – much comes down to details. Know your goal. Ours was to ensure
repetitive sales and create excitement amongst readers.” From start to finish, the newspaper
spent a whopping US$45,000 on the initiative, and a total of 10 staff members, nine in
marketing and sales, and one journalist, were involved in the planning and execution of the
project. “The beginning of the year is typically a low season for sales, so we thought it would
be great for sales if people were able to win cash after the holiday season,” says Wasswa.
“One week before the competition started, we advertised the game in our newspaper. We also
bought radio time and advertised through banners promoting the game. We ran banners in a
total of 15 towns.” �The newspaper’s sister publication, the English-language “New Vision”
had carried out a similar competition the previous year, so “Bukedde” knew the potential of
such an initiative. Advertising for the game will continue throughout the two-month period,
and publicity around the weekly winners is also expected to capture the public’s attention -
the winners receive print, radio and television time to talk about their experience. �Since 45
per cent of the newspaper’s revenue comes from newspaper sales, and the other 55 per cent

from advertising, increasing sales is as important as attracting advertising. Advertising
increased by 10 per cent during last year’s “New Vision” Bingo competition. Wasswa expects
a similar increase for “Bukedde”. �World Association of Newspapers, RAP 21 Newsletter No
2/2004
Direct Mail / Direct Marketing / Database Marketing
International
Consumers prefer mail for receiving documents, letters, new product announcements and
offerings and confidential communications such as bank statements and financial reports…
…according to a survey released yesterday. The study by International Communications
Research is the third mail preference survey commissioned since March 1999 by Pitney
Bowes, Stamford, CT, a vendor of mail solutions for businesses. The study found that despite
the rise in households with access to e-mail -- from 34 percent in 1999 to 62 percent in 2003 -
- 66 percent of respondents prefer regular mail for documents, letters and messages, up from
62 percent in 2001. The survey asked respondents what communications method -- mail, email
or telemarketing -- was their least preferred. More than 60 percent chose telemarketing.
www.dmnews.com; January�27,�2004
United States of America
St. Louis Post-Dispatch LLC is expanding its advertising reach with a direct-mail venture that
will handle circulars for two St. Louis-area grocery chains. The publishing company has won
the business away from ADVO Inc., whose weekly mailings feature pre-printed
advertisements for Schnuck Markets Inc., Dierbergs Markets Inc., Shop 'n Save Warehouse
Foods Inc. and other stores. Dierbergs and Shop 'n Save have made firm commitments to the
Post-Dispatch's venture, called Local Values. "We're really excited about it," said John
Muckerman, vice president of marketing at Dierbergs. He said the new service offers more
flexibility than the ADVO service the grocery chain has used for about 15 years. The Local
Values program will begin March 1 and will allow participants to target specific geographic
zones through the Post-Dispatch's carrier network and the U.S. mail, said Matthew G. Kraner,
the newspaper's general manager. Subscribers in the targeted areas will get circulars in their
Monday papers, and non-subscribers will receive them in the mail, Kraner said. ADVO,
which distributes its direct-mail packages Mondays, took the defections of Dierbergs and
Shop 'n Save in stride. "In the course of doing business, we see fluctuations in any given
market, resulting in business won or lost for ADVO," said Mary Lou Dlugolenski, director of
corporate communications. "We measure the success of our business in year-over-year
performance, and we continue to see steady growth for our company." ADVO is based in
Windsor, Conn. It has annual revenue of nearly $1.2 billion. Its targeted mailings reach 67
million U.S. households each week. Pulitzer Inc., the parent of the Post-Dispatch, had $422.7
million in revenue last year. Pulitzer's operations in St. Louis, including the Suburban
Journals of Greater St. Louis, accounted for $303.9 million of that total. The Post-Dispatch
hopes to lure additional customers to the direct-mail service through cost savings and other
advantages, such as the ability to target recipients and the chance to piggyback on the
popularity of the grocery circulars. The Post-Dispatch is a relative latecomer to the direct-mail
business, said Bob Brinkmann, executive director of the Newspaper Target Marketing
Coalition, an industry group in Washington. Probably 90 percent to 95 percent of daily
newspapers are doing some kind of direct mail in an effort to give advertisers total market
coverage, he said. "It's the newspaper industry responding to the needs of advertisers," he
said. Starting a program that can target specific demographic groups requires detailed,
accurate mailing lists, Brinkmann said. "It's really difficult to do unless you have a database,"

he said. The Post-Dispatch long had relied on independent agents to deliver many of its
newspapers and to bill customers for their subscriptions. The company has been buying out
those agents in recent years, and it now owns 75 percent of home-delivery and single-copy
distribution. It also has taken over customer billing, giving it access to much more
information about its customers, Kraner said. Executives of Pulitzer Inc. said in a conference
call with analysts last week that start-up costs associated with the direct-mail venture probably
would be a drain on earnings in the first and second quarters. The point at which the directmail
initiative breaks even depends on the amount of additional business it attracts, said
Robert C. Woodworth, president and chief executive. www.stltoday.com; January 26, 2004
Audit Bureaux of Circulation / Standards
India
Why is The Times of India not part of the Audit Bureau of Circulations? To answer that
question, let’s go deeper into the newspaper business. The newspaper once printed, is sold to
the vendors who then deliver the newspaper to the readers. The difference between the price
charged by the company from the vendor and the price charged by the vendor from the reader
is the vendor’s margin for selling/delivering the newspaper. The Delhi market has been in a
state of flux over the last two years. To begin with, in June 2002, Times of India and
Hindustan Times were retailing at Rs. 56 and Rs. 59 per month respectively and we were
paying a margin of 34% to the vendors, well within ABC mandated ceiling of 40% on the
margins. We were planning a price cut of about Rs. 10 per month when ABC lowered the
ceiling on margins to 35%. We then had two options- one: to abandon the cover price drop
and give the vendors the same margin to meet the 35% rule or two: go ahead with the
reduction in price and protect the vendors’ margin, which is what we chose to do. Thus, we
did not meet the ABC norm of maximum of 35% margin. In June 2003, the combo was
launched where one month’s subscription of Times of India and Navbharat Times that would
ordinarily cost Rs. 129 was available at Rs. 75 per month as was Hindustan Times and Hindi
Hindustan. Again confronted with the same choice as before, we decided that there would be
no reduction in the margin given to the vendors. These again did not meet the ABC statute of
maximum of 35% margin. Why have we chosen to consciously not follow the ABC
guidelines? We have always believed in offering more to the reader- be it the innovative
content or tempting price offers. Today, newspapers are cheaper than a bar of soap, a cigarette
or a cup of coffee enabling them to be accessed by many more. The TOI-NBT Combo was an
incentive to the readers to read more by offering them a price advantage. At the same time, we
had to compensate the vendors at the same level per copy. Why? In the last fifteen years,
prices of most items have doubled with inflation being 4-5% per annum. Newspaper prices,
on the other hand, have fallen by one third. The vendor’s margin per paper has however
remained static despite the rising costs.� Add to that more supplements being given, making
the paper weightier and requiring more beat boys to deliver the same number of copies.
Therefore, at the very least we must ensure that the vendors are not worse-off with any
marketing initiative that we undertake and so our margins end up being more than the
prescribed 35% on the cover price. Net of net there is a three way trade-off between ABC,
reader and vendor. Protect the interests of one at the cost of the other two. Reduce prices for
readers and safeguard the vendors’ interests and you lose out in ABC because you must not
give a margin greater than 35%. In mature markets like USA and UK, the ABC has much
higher ceilings of up to 50% on the margins that can be given. They also have special rules to
deal with combo schemes like the one in Delhi.�An ABC certificate is a testimony to the fact
that XYZ copies of the newspaper were sold, as per certain norms that ABC has specified.
What follows is that a publisher has a choice to sell newspaper copies to the readers in a

manner different from the norms- like TOI at lower prices and at a margin higher than 35% to
the vendors- but runs the risk of not being certified by the ABC. An ABC certificate,
therefore, does not reflect the true, overall sale of publication in a market. In the present
scenario, we have chosen to protect the readers’ and the vendors’ interests, even if in the
process we do not get certified by ABC.�We have established leadership in terms of
readership (i.e. number of people who read the paper) and are clear that we are leaders in
circulation (i.e. number of copies sold) if the overall sale in the market is to be accounted for,
and not just sale as per certain ABC rules. An indirect evidence of that is that in terms of
readership we have shown growth period after period whereas our worthy competitor has
declined.� Now readership is a derivative of circulation and hence growth in one goes hand in
hand with growth in the other. Our worthy competitor grows in ABC period after period
despite fall in readership, a fact we find hard to digest. At the same time, if we have shown
growth as well as leadership in readership, we must have grown and be leaders in true
circulation as well. We believe that obscurantist norms must give way to norms that reflect
market realities and that give greater freedom to publishers to price and incentivise, as is the
case in mature markets like US and UK. Once that is done, we are confident that we will, redemonstrate
our No.1 status in the city of Delhi. http://economictimes.indiatimes.com;
January 14, 2004
Pricing Policy
Singapore
Singapore Press Holdings Ltd. said January 13 it will raise the newsstand prices for nine of its
newspapers… …from January 16. For home and office subscribers, the price increases will be
lower and will take effect on Feb. 1, 2004, the publisher said. The newsstand price of the
publisher's flagship 158-year old Straits Times newspaper will be raised by 20 Singapore
cents (US$1=S$1.6943) to 80 cents, while subscribers to the newspaper will pay 70 cents, the
publisher said. The current price of the newspaper is at 60 cents. The move is the first time the
publisher has raised newspaper prices since 1995, and will help the company overcome rising
costs, it said. "Despite our concerted efforts to contain cost, particularly in tightening
manpower, our newspaper production costs have gone up significantly over the years," said
Singapore Press Holdings' Chief Executive Alan Chan. "We can no longer fully absorb the
rising cost." The cover price for the English language Sunday Times will be raised by 15
cents to 80 cents from 65 cents now, while subscribers will pay five cents more, or 70 cents,
the publisher said. For the other newspapers - Lianhe Zaobao, Lianhe Wanbao, Shin Min
Daily News, The New Paper, The New Paper on Sunday, Berita Harian and Berita Minggu -
the newsstand price will go up by 10 cents, while the subscription price will go up five cents.
The financial impact would be minimal, the publisher said, since most of its revenue comes
from print advertising rather than newspaper prices. "We do not expect the price increases to
have any material impact on the bottom line," Singapore Press spokeswoman Irene Ngoo told
Dow Jones Newswires Tuesday. The price hikes come two weeks after Singapore raised
goods and services tax to 5% from 4% on Jan. 1. A year earlier, the GST was raised to 4%
from 3%. The latest rise in the goods and services tax would have cost the publisher S$9
million annually, it said. Dow Jones; http://sg.biz.yahoo.com; January 13, 2004
Singapore
Following criticism from the Consumers Association of Singapore (Case) that raising the
cover prices of SPH newspapers was too sudden and unjustified… …Singapore Press
Holdings elaborated on the reasons. Case president Yeo Guat Kwang said the association has
received 'numerous complaints', mostly from people unhappy that news-stand buyers have to

pay more for the same paper than readers who subscribe. They found that differential pricing
'unreasonable', he said. Prices of nine newspapers - The Straits Times, The Sunday Times,
Lianhe Zaobao, Lianhe Wanbao, Shin Min Daily News, The New Paper, The New Paper on
Sunday, Berita Harian and Berita Minggu - went up by between five and 10 cents for
subscription copies, and between 10 and 20 cents for news-stand copies. Case said that raising
the news-stand prices three days after SPH announced the changes was too sudden. Mr Yeo
felt SPH should have taken into account the fact that the economy is just recovering and many
people are still feeling the impact of the downturn. He noted that the company had reported a
23 per cent increase in its net profits of $378 million last year, and there were 'no compelling
reasons for SPH to push prices up at this point in time'. He said the increases seemed aimed at
encouraging readers to subscribe rather than buy their papers at news-stands, and if that were
so, SPH should look at incentives other than differential pricing. While urging SPH to
reconsider its decision, he suggested that consumers turn to other sources of information,
including online newspapers, freesheets, television and radio. Responding to Case, SPH chief
executive officer Alan Chan said that SPH has received 1,100 hotline calls in the last three
days but more than 95 per cent were inquiries on subscription details. There were only 56
complaints, and some of these callers were persuaded by the reasons why regular subscribers
pay less. He said: 'The price differentials between news-stand and subscriber copies are meant
to favour daily subscribers who comprise the majority of those who buy our papers. 'This is a
common international practice to reward loyal subscribers who form a consistent readership
base and reduce wastage in unsold copies.' He said SPH has not raised prices since 1995 and
has held off increases through difficult economic conditions since the 1997 Asian crisis, even
as prices of most consumer items went up - bus fares by 40 per cent, taxi fares (50 per cent),
white bread (47 per cent) and a cup of coffee (40 per cent). 'Despite concerted efforts to
contain costs, our newspaper production costs have gone up significantly. We can no longer
continue to fully absorb the rising cost,' said Mr Chan. He explained that the company's profit
last year included a one-time exceptional gain of $188 million from the partial sale of its stake
in telecommunications company MobileOne. For its core newspaper operations, profits had in
fact been declining in line with difficult market conditions. Its latest first-quarter results
registered a net profit of $83.8 million because contributions from its property arm made up
for the weak showing from its newspaper operations. He noted that SPH not only produces
paid newspapers, but also provides free alternatives, such as the online editions of several of
its publications including The Straits Times. It puts out a free morning daily, Streats, and
daily news bulletins on Channel i and Channel U, its two free-to-air television channels. 'SPH
strongly believes that our paid products continue to provide value for money, even at the
higher prices.' http://straitstimes.asia1.com.sg; January 17, 2004
Newspaper Wars
United States of America
Spanish-language press battles for booming audience. “We're here to fight.” Ninety years ago,
that feisty mission statement launched the U.S. publishing career of Ignacio E. Lozano,
founder of Los Angeles newspaper La Opinión, the country's largest Spanish-language daily.
This month, those same words launched a newspaper war -- a national contest for Spanishspeaking
audiences pitting La Opinión and allies against the powerful Chicago-based Tribune
Co. The outcome will have important implications for Spanish-speaking communities because
it will help shape the kind of journalism that will serve these booming populations. In a Jan.
16 editorial that repeated its founder's pugnacious motto, La Opinión announced the Lozano
family had dissolved its 50-50 partnership with Tribune Co. The paper said it was joining
with private investment group CPK Media, which already owns New York City daily El

Diario/La Prensa, to start the country's first-ever national chain dedicated to Spanish-language
newspapers: Impremedia. The Tribune Co., which established commercially successful
editions of the Spanish-language tabloid daily Hoy in New York City and Chicago, had long
been eager to expand this chain to Los Angeles. The investment in La Opinión interfered,
since the two papers would compete. That's no longer a problem: just days after La Opinión's
announcement of the break, Tribune Co. announced L.A.'s Hoy edition would launch in
March. The 130,000-circulation La Opinión says that its purpose will remain the same:
providing its mainly immigrant readership with tools to "advance in this society." The paper
says it will not bend on its commitment to community and service-oriented journalism.
Instead, it envisions these "principles" spreading coast-to-coast through Impremedia, which
plans more acquisitions. (La Opinión is a member of the New California Media ethnic media
association, a project of Pacific News Service). With the Lozanos' support, La Opinión frames
news coverage with a focus on immigrants' rights and Latinos' participation in U.S. civic life.
But with CPK Media investors no doubt desiring a decent return on their money, it may
become more difficult for La Opinión to maintain its proclaimed vision of combative, but
serious journalism. Competition with Tribune Co. will at least create pressure for the same
kind of tight-fisted spending and resource pooling (like the "Hoy model" of multi-city
editions) common to chains. The risk-averse cultures of corporatized media and its "business
efficiencies" are often blamed for many newspapers' bland editorial stances and homogenized
feel. A recent misstep at El Diario/La Prensa shows high-minded editorial ideals are not
always a priority for skittish investors. Shortly after CPK Media bought El Diario/La Prensa
in 2003, the new owners forced editor Gerson Borrero to cancel a column on education
penned by Cuban President Fidel Castro. Borrero resigned in protest. Then, El Diario/La
Prensa was embarrassed when two competitors, New York-Hoy and the New York Daily
News (which plans to launch its own Spanish-language weekly) published the column.
Vicky Pelaez, an El Diario/La Prensa columnist, said the new ownership should not have
meddled with editorial freedom. But she wrote that the competing publications had a
commercial motive for "wrapping themselves in the flag of press freedom." The Lozanos may
use their clout on the Impremedia board to head off attempts to meddle with editorial
autonomy. They strongly maintained that each paper would remain "independent" and, unlike
the Hoy model, each would preserve its separate identity. In Los Angeles, 78-year-old Ignacio
E. Lozano Jr., who led La Opinión between 1953 and 1986, acknowledged in the paper that
merging into a chain was "a different step than others taken during the newspaper's history."
Recently, Ignacio Lozano Jr. went on a kind of family pilgrimage with his daughters,
including Mónica Lozano, who will now run La Opinión, to San Antonio, Texas. There, they
combed through library archives and found the first copy of the newspaper that Lozano Jr.'s
father published in the Texas city in 1913 before moving to Los Angeles. La Opinión "will
absolutely not change," Lozano Jr. says. La Opinión enjoys a towering reputation in "Latino
L.A." and is the paper of record among the nearly 5 million Latinos who make the city the top
Spanish-language media market. Similar are El Diario/La Prensa's historic ties to New York's
Puerto Rican community. People have poked fun at the paper for its frequent stories on banal
subjects such as leaky roofs in housing projects, but it is acknowledged as a community
institution. Still, New York's Hoy, launched in 1998, eclipsed the 90-year-old El Diario/La
Prensa's numbers and now has a circulation of 94,000. La Opinión, which is a broadsheet,
must fear that L.A. readers will become enamored of Hoy's tabloid format, slick design and
often-sensational front-page photos and headlines. The cover of Hoy-New York on Jan. 23,
for example, showed a woman awaiting deportation with an electronic monitoring device
strapped to her ankle. The headline: "Like an Animal." On the same day, La Opinión's more
sober main headline was: "New Mexican Consuls Presented." Regarding Impremedia, La
Opinión's José I. Lozano, now vice chairman, told industry journal Editor & Publisher: "It

was about as perfect an alignment of stars as you could get." But Tribune Co. clouds the
picture. http://news.pacificnews.org; Pacific News Service, January 26, 2004
Distribution Ways & Channels
Belarus
Belarus state institutions refuse to deliver independent paper. Belposhta, Belarus' national
postal service, has unilaterally cancelled a contract to distribute subscriptions to the prominent
independent newspaper "Belorusskaya delovaya gazeta" in the first half of 2004. Belposhta
will return subscription money to subscribers. Belsayuzdruk, the Belarusian national press's
retail sales network, has meanwhile refused to distribute "Belorusskaya delovaya gazeta"
through its kiosks in Minsk, Brest, and Vitebsk. According to the paper's publisher, the
moves to curb his paper's distribution originated within the presidential administration. Last
year, the authorities suspended the publication of "Belorusskaya delovaya gazeta" for three
months. www.rferl.org; Belapan; The EJC Media News Digest of 14 January 2004
Kenya
State clampdown forces Kenya's "alternative" press off newsstands. Most of the Kenyan
newspapers widely referred to as the "alternative press" have vanished from newsstands
following a government clampdown on the allegedly illegal publications, journalists and
publishers said. "The newspapers are not being published at all because police are still
confiscating copies from vendors all over the country," Kenya Union of Journalist (KUJ)
Secretary General Ezekiel Mutua, told AFP. "The government said it would not lift the ban on
those publications until it is satisfied that KUJ can effectively regulate them," he added.
Police on January 10 started seizing thousands of copies of newspapers said to have been
published illegally and arresting vendors who were selling them. At least 25 news vendors
have been charged in court and fined up to 20,000 shillings (260 dollars). Mburu Muchoki,
the publisher of the Independent Weekly, has been charged with publishing an illegal
publication and has been released on 10,000 shillings (130 dollars) bail pending trial. "We
will still fight on until the government lifts the ban," said Balmuel Njururi, the publisher of
Kenya Confidential, which has not come out since the police crackdown on the newspapers
started. Mikewa Ogada, a programme officer with the Kenya Human Rights Commission
(KHRC), urged the government to review its "draconian (press) law", which he said would
drive small newspapers out of business. Some of Kenya's so-called "alternative press" carry
sensational stories, mostly about alleged indiscretions of senior government figures or
well-known politicians. Parliament in 2002 passed a series of laws which, among other issues,
raised bonds for publishing from 10,000 Kenyan shillings (130 dollars) to one million
shillings (13,000 dollars), and were seen as aimed at forcing the newspapers and leaflets out
of circulation. AFP, January 22, 2004
Printing Kiosks / Satellite Delivery
United States of America
New sign-ups bring 141 major newspapers into Satellite Enterprises Corp. newspaper kiosk
network. Satellite Enterprises Corp. has recently signed the following Newspapers for
distribution around the world through its Satellite Newspapers Direct Kiosk: Kathimerini,
both in Greek and English versions, from Greece. The National Business Review from New
Zealand, Allgemeine of Frankfurt, and Handelsblatt of Germany, Ad Dustour of Jordan,
Expresso of Portugal, Indian Express of India, Toronto Star of Canada, and Gazeta Prawna of
Poland. Almost every nation in the world is represented and its newspapers are available on

an instant use basis. Recently, the signing of Satellite Newspapers Suisse, brought the World
Wide Rights of all of the 141 Newspapers into the Public Company, Satellite Enterprises
Corp. The Company is adding additional major world wide newspaper coverage weekly with
new expansion in Asia and Australia. Satellite Enterprises Corp. is a NASDAQ OTCBB
Company. With the acquisition of Satellite Newspapers Suisse, it has now added World Wide
Rights to its previously held North, Central and South American rights for Automated Digital
Kiosks. The Satellite Newspaper Kiosk prints on demand, the latest edition of 141 (and
growing) major syndicated newspaper titles from around the World. After selection of the
desired newspaper through the user friendly touch screen, the user will be entertained by
targeted advertising videos displayed on the Kiosk screen, while the Digital Kiosk quickly
prints and delivers through the slot, the complete newspaper. The Private Securities Litigation
Reform Act of 1995 provides a "safe harbour" for forward-looking statements. Certain
information included in this press release contains statements that are forward-looking, such
as statements relating to results of operations and financial condition and business
development activities, as well as capital spending and financial sources. Such forwardlooking
information involves important risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, such results may differ materially from those
expressed in any forward-looking statements made by or on behalf of Satellite Enterprise
Corp. For more information regarding these risks and uncertainties, review Satellite
Enterprise Corp. filings with the Securities and Exchange Commission.
Press Release by Satellite Enterprises Corp.;
http://biz.yahoo.com/prnews/040114/ca263_1.html; January 14, 2004
United States of America
Players from Russia, Switzerland, Columbia, France, Argentina, Spain and the USA are able
to get home city newspapers daily at their fingertips while waiting for tennis matches.
Satellite Enterprises Corp's Australian Distributor, Adam Watt, President of Newspoint, Inc.,
has put Satellite Newspaper Kiosks at the Australian Open Tennis Tournament in Melbourne,
and has met with resounding success and comments from players and visitors alike, who wish
to get an instant daily edition of their home city's newspaper on demand. Mr. Watt has
purchased the rights to the Satellite Newspaper Kiosk for all of Australia and New Zealand
from Satellite Newspapers Suisse and is rolling out the Kiosks to major sites in those
countries. Adam Watt stated: "Once the tennis players at the Open saw that they could obtain
over 141 Major Newspapers, instantaneously and complete, they no longer felt homesick. All
the news is as if you were at home. The lines are long and full of whoops and hollers. It is
quite impressive. The spectrum of interest is vast. Even Royalty uses the Satellite Newspaper
Kiosk. Dutch Queen Beatrix purchased 15 copies of her favourite newspapers at her recent
stop over at the Singapore Airport." Satellite Enterprises Corp. is a NASDAQ OTCBB
Company. With the acquisition of Satellite Newspapers Suisse, it now has added World Wide
Rights to its previously held, North, Central, and South American rights for Automated
Digital Kiosks. The Satellite Newspaper Kiosk prints on demand the latest edition of 141 (and
growing) major syndicated newspaper titles from around the world. After selection of the
desired newspaper through the user friendly touch screen, the user will be entertained by
targeted advertising videos displayed on the Kiosk screen, while the Digital Kiosk quickly
prints and delivers through a slot, the completed newspaper. The Private Securities Litigation
Reform Act of 1995 provides a "safe harbour" for forward-looking statements. Certain
information included in this press release contains statements that are forward-looking, such
as statements relating to results of operations and financial condition and business
development activities, as well as capital spending and financial sources. Such forwardlooking
information involves important risks and uncertainties that could significantly affect

anticipated results in the future and, accordingly, such results may differ materially from those
expressed in any forward-looking statements made by or on behalf of Satellite Enterprise
Corp. For more information regarding these risks and uncertainties, review Satellite
Enterprise Corp. filings with the Securities and Exchange Commission. Press Release;
Satellite Enterprises Corp.; http://biz.yahoo.com; January 27, 2004
� PRINTING & PRODUCTION SYSTEMS
Printing Market
Germany
Heidelberger Druckmaschinen AG presents nine-month figures for fiscal year 2003/2004;
measures to enhance efficiency are beginning to take effect in all sectors. * Incoming orders
received in third quarter on par with previous quarter. * Sales in third quarter well above
previous quarters. * Cost-cutting measures are beginning to take hold -- positive operating
profit in third quarter. * Restructuring proceeding well, total of Euro 525 million set aside. *
Net loss of Euro 725 million. * During the first nine months (April 1 to December 31, 2003)
of fiscal year 2003/2004, Heidelberger Druckmaschinen AG recorded incoming orders of
Euro 2.8 billion (previous year: Euro 3.1 billion). Incoming orders in the third quarter were
just short of Euro 1 billion. They thus matched the previous quarter and, after adjustments for
currency fluctuations, were on a par with the previous year. Sales in the period under review
were Euro 2.5 billion (previous year: Euro 2.9 billion). Adjusted for currency effects, this
represents a fall of 9 percent compared with the previous year. Sales in the third quarter were
just below Euro 1 billion and as such were well above sales in the previous quarters. After
adjustments for currency fluctuations, sales matched those for the third quarter of the previous
year. "The slow signs of recovery in the global economy are now also being paralleled by the
first positive trends in the graphic arts industry," stated Bernhard Schreier, Chief Executive
Officer of Heidelberger Druckmaschinen AG. "We believe that, after three years of strongly
negative trends, we are beginning to see the turnaround. Slight increases in advertising
budgets give reason for hope. The course for the restructuring operations already announced
by the company will have been set by the end of the fiscal year in March 2004." As of
December 31, 2003 the Heidelberg Group had a workforce of some 23,400 worldwide
(previous year: 24,700). By the end of fiscal year 2004/2005, Heidelberg will have reduced its
worldwide workforce by a total of some 4,200 jobs compared to April 1, 2002, of which
3,000 jobs (adjusted) have already been reduced. 300 of these were reduced in the third
quarter of the current fiscal year alone. * Prospects for Fiscal Year 2003/2004 -- Drop in Sales
of Around 10 Percent Expected; Target is Still to Achieve Break-Even Operating Result
Before Restructuring. Heidelberger Druckmaschinen AG; http://biz.yahoo.com; January 27,
2004
Broadsheet / Tabloid Formats
Global
INMA launches new report on newspaper formats, examines advantages and disadvantages of
compact editions. The International Newspaper Marketing Association (INMA) has published
a new report titled “Does Size Matter For Newspapers? The Trend Toward Compact
Formats.” The 8,000-word, 34-page digital report is written by Dawn McMullan and Earl J.
Wilkinson, project manager and executive director of INMA, respectively. The report comes

from: * Exclusive interviews with more than a dozen top newspaper executives, researchers,
and designers from around the world. *�Bringing together secondary sources from trade
magazines, business newspapers, and INMA conference speeches and archives. *�And,
INMA’s extensive global reach that extends to North America, Europe, Latin America, and
the Asia-Pacific regions. The report attempts to answer the question: Is there truly a global
trend toward more compact editions? INMA finds that while there is an underlying theme of
consumer research favouring compact newspapers worldwide, there are pervasive reasons
within many countries that prevent conversions from larger to smaller formats. Such reasons
don’t exist with new products, and INMA believes that it is no coincidence that the vast
majority of new newspaper, supplement, and section launches in the past decade have been in
compact formats. INMA uses the moves by The Times and The Independent in the hypercompetitive
U.K. market as a comparison point for other national markets that have converted
to compact formats or are in the process. The association brings together in one report the
thinking behind compact and broadsheet formats in the South Pacific, Latin America, Europe,
and North America, and finds surprisingly similar thought processes – even as national
newspaper industries draw different conclusions. In examining the trend toward compact
formats, the report examines the merger of format and style, the research community’s
consensus on format, what happens when newspapers make the conversion, the long-term
effects of newspapers that convert, the broadsheet-compact “hybrid” solutions that involve
dual re-packaged daily products, and the tendency of first-movers to influence national
markets in format changes. The report also looks specifically at the moves by The Times and
The Independent, inherent advantages and disadvantages of broadsheet and compact formats,
and the impact on advertising of the different formats. “Does Size Matter For Newspapers?
The Trend Toward Compact Formats” includes colourful displays of newspaper front pages
from around the world that indicate the broadsheet, Berliner, tabloid, and micro formats that
are most popular. The report is based on a January 2004 Ideas Magazine cover story written
by McMullan and Wilkinson. The digital report is available to INMA members for US$10
and to non-members for US$75. Orders may be placed at the INMA.org bookstore. For more
information on this report, please contact INMA Membership Director Angela Rodriguez by
telephone at +1 214 373-9111 or by e-mail at rodriguez@inma.org. News release, January 8,
2004
United Kingdom
More broadsheets to follow tabloid path? Industry attention has returned to The Independent
this week as speculation increases that the Sunday title will be next to offer a tabloid edition.
Independent News and Media bosses have admitted this week to considering the option of
downsizing on the remaining two days that do not offer a tabloid version, but stressed a
decision “was not imminent”. The speculation came as other industry sources suggested both
The Guardian and The Daily Telegraph would launch compact editions next month, in the
first and third weeks of February respectively. However both camps have continued to
maintain the position of watching developments closely with decisions to be made shortly. A
radical format makeover on The Independent on Sunday will still be a big shock to the
industry, which hasn’t seen a weekend broadsheet slimdown since the ill-fated Sunday
Correspondent in 1990. Unlike the compact edition of The Times, the tabloid Independent has
avoided styling itself as a commuter-based product in its marketing since the launch in
October, potentially paving the way for the entire Independent operation to downsize if the
daily was a success. However, the long-term strategy of The Independent on Sunday could
also come into question, as executives will once again be accused of playing their final hand
as the paper faces falling circulation. Figures from the Audit Bureau of Circulations revealed
the IoS had lost 4.4% sales year on year to just over 205,000 copies an issue in December.

Despite being the smallest Sunday broadsheet newspaper in terms of size, apart from The
Business, a tabloid IoS would still be a hefty package, with its Sport, Business, Life Etc,
Sunday Review and Talk of the Town (London only) sections. INM managing director Terry
Grote played down the recent gossip, but added: “This is still very much speculation – but,
having said that, every one of our competitors and every publisher is looking at their strategy
going forward.” Sales of the Indy have been made away from the commuting market,
indicating there is a demand for broadsheet quality in a compact style, said Grote. Mark
Gallagher, head of press at Manning Gottlieb OMD, said: “Once again, perhaps, they’re
trying to be first in the market and reaffirming their position as an innovative newspaper.
“Also, readers are more used to a tabloid Independent already from the product being offered
during the week.” Meanwhile the new-look International Herald Tribune will be unveiled this
morning (Thursday). The 117-year-old Paris-based newspaper is also planning a massive
marketing campaign. Asked to comment on rumours that the paper might be appearing in a
tabloid format, following the new “compact” versions of The Times and the Independent, a
spokesman said: “I don’t know the answer to that. This will be very much an unveiling
ceremony, so there’s very little we can say in advance of the event.” www.mediaweek.co.uk,
January 15, 2004
United Kingdom
Telegraph holds fire on tabloid switch. The Daily Telegraph has insisted it has yet to decide
whether to join the headlong rush towards launching tabloid editions, despite strong rumours
it was readying a launch for next month. As the Times announced earlier this week it was to
go nationwide with its compact twin, rumours swept the industry that the Telegraph was
planning to launch its own tabloid edition at the beginning of February. The Telegraph joint
managing director, Kim Fletcher, admitted the paper was "ready to go" with a tabloid version,
but said it was still weighing up the pros and cons. He said the plans remained on ice until the
group was absolutely convinced that printing a smaller edition alongside the main paper
would work economically. "We can run a tabloid, but we want to be absolutely convinced of
the business case in doing so," said Mr Fletcher. He said the paper would not be rushed into a
hasty decision and while conceding it was "frustrating" to see the Times and the Independent
taking the initiative, he counselled that cost implications had to be taken into account.
Telegraph insiders said two dummy issues of the tabloid were produced last year by designers
- one following the Independent and Times model of cramming all the broadsheet's content
into a tabloid format, and another that took a more revolutionary, design-led approach. Some
sources said there was a division between the editorial side of the operation, overseen by
Fletcher, which was keen to press ahead with a tabloid version, and the business side, headed
up by the co-managing director, Hugo Drayton, which remained unconvinced it could be
made to pay. Some also say the hold-up has as much to do with technical issues as with
financial considerations. The Telegraph has been slowly introducing a new computer system
staff say would be unable to handle the simultaneous production of a tabloid. Both the
Independent, which was the first broadsheet to produce a compact companion edition last
September, and the Times, which followed suit in November, have enjoyed increased sales as
a result of their decision to go tabloid. The latest figures available for the Independent's
circulation - for November, when the tabloid was available only in the south-east - show the
paper has put on around 22,000 extra sales since going tabloid, taking it over the 240,000
mark. And industry estimates suggest the Times has put on around 35,000 net sales a day in
December on a compact print run of around 150,000 - and sources suggest it is selling around
70,000 copies of the tabloid a day. It has now increased the print run to 250,000 and expanded
distribution to cover most of the rest of the country. But the increased sales have come at a
heavy price, particularly for the Times. It is continuing to print the same number of
broadsheets per day despite selling around 40,000 fewer copies, and at present is left with

around 80,000 unsold tabloids per day. Both papers have also had to absorb the increased
production and distribution costs involved. http://media.guardian.co.uk; January 8, 2004
United Kingdom
In the UK, the headlines remain for the new tabloid format expansion. Following The
Independent, Murdoch's venerable Times has followed the same route. After tests in the
Southeast of the country, both are now going national. The Independent will even sell only a
"compact" version for its Sunday issue as of January 31st. The conclusion is clear: a tabloid
format was not only an expectation from the commuters. It is yet too soon to get detailed
growth data, but it is for sure, that the tabloid version has generated extra sales. Still the
decisions by The Guardian and The Daily Telegraph are awaited. Now that this latter knows
more about its stock holding, the decision could be in the pipeline. The tabloid route has been
followed as well in many Nordic countries and in the Netherlands. All of that sounds pretty
exiting. But it must be noted that the sales of the traditional tabloid papers are at their lowest,
with The Sun at its worst in 30 years. It could well be that the format switch is only a shortterm
breath of fresh air for the up-market as well. Thus, some threats arise concerning a new
price war, Murdoch would be ready to launch, by the new tabloid Times, for instance.
A.N.I.M.A.’s Newsletter, January 26, 2004
United States
Will London's Tab Experiment Affect U.S. Broadsheets? The global newspaper industry is
watching to see what's going to happen next in Merry Old England. Last September in
London, the 17-year-old broadsheet The Independent launched a same-day tabloid twin of
itself. Two months later the 218-year-old Times of London followed suit with its own
downsized clone. But are tabloid-sized papers really necessary in all markets? Newspaper
veteran Stuart Garner -- who has held publishing posts in the United States, Canada and the
United Kingdom -- doesn't think so. For him it's all about the content. "Anyone who has
ridden on a Metro North railroad train into Manhattan in the morning sees thousands of
people who can quite happily handle the broadsheet New York Times despite the lack of
space," he told INMA. "The point is they read The New York Times for the content, and they
seem to find it just right for them." The International Newspaper Marketing Association
(INMA) late last week released an 8,000-word, 34-digital-page tome titled "Does Size Matter
For Newspapers? The Trend Toward Compact Formats." The report -- written by Dawn
McMullan and Earl J. Wilkinson, project manager and executive director of INMA,
respectively -- is an exhaustive take on an issue that is becoming sexier by the day as the
traditional broadsheet dynamics are holding less sway with publishers and readers alike. In
newspaper markets around the world where broadsheets are the norm -- like many cities in the
U.S. -- the term "tabloid" stirs up images of bombastic headlines and sensational reporting.
But in other parts of the globe, tabloids, or compacts, are the standard, according to the INMA
report. In Scandinavia, Latin America, Central Europe and South Africa, tabloids dominate.
Of the free commuter newspapers and upscale young adult newspapers launched in Europe,
Latin America, North America, Asia, and the South Pacific since 1995, all are tabs or smaller.
And in Austria, newspapers have been published in compact formats for decades. Conversely,
in the United States, less than 1% of the nearly 1,500 paid dailies are tabloid. Those that exist
-- papers like the Denver Rocky Mountain News, Chicago Sun-Times, New York Post, New
York Daily News, Newsday, Philadelphia Daily News and the Boston Herald -- are in
markets with more than one paper. But for the majority of publishers and newspaper analysts
outside America, recent moves by The Times and The Independent make a world of sense. "It
is difficult to think of any other mass-market product that is not produced in all shapes and
sizes, in recognition of the fact that consumers come in all shapes and sizes," Ally Palmer,

director of Palmer Watson Design, an Edinburgh, Scotland-based design consulting firm, told
INMA. Editor and Publisher; January 13, 2004
United States
Experts in the field of newspaper design say the days of the broadsheet newspaper such as
The News & Observer or The Wall Street Journal are coming to an end… …- to be replaced
by the tabloid format. Mario Garcia, the nation's most respected newspaper designer, has
emerged as a strong advocate of the switch. He recently spent 13 months redesigning The
Miami Herald, though he failed in his plea to the editors to make the switch to tabloid.
Garcia predicts that most U.S. newspapers will be tabloids within 20 years. Why? "Less is
best. Smaller is better," he told one interviewer. "Readers everywhere prefer the small format.
So, in my opinion, it is a good thing." The movement already has taken hold in Great Britain,
where the newspaper industry is dominated by a handful of national publications. One of
those, The Independent, last fall began offering its readers a choice - tabloid or broadsheet -
and set them side by side on newsstands. Readers chose the tabloid by a wide margin, reports
Rick Edmonds in an article at Poynteronline, a newspaper industry Web site. And, "total
circulation in the test markets rose 40 percent." But what about a British paper that really
matters - say The Times of London, viewed as Great Britain's version of The New York
Times? In December, The Times rolled out its own tabloid edition - again as an option.
Rupert Murdoch, owner of The Times, is reported to have expressed relief that a competitor
tested the market, "lest he be accused of desecrating the venerable broadsheet," wrote
Edmonds. Daily newspapers have been likened to elephants or battleships. Sometimes it's
hard to get them to move and, when you do, it's hard to get them to change direction. But they
ultimately do move, as did The N&O a few years ago with a redesign that was accompanied
by a reduction in the size of the broadsheet by about 7 percent. Orage Quarles, publisher of
The N&O, sees the advantage of a smaller format. "I've always believed that long-term, in 20
to 30 years, the switch to tabloid might occur as readers demand a more portable and easier to
handle format." For now, though, he says The N&O is not even looking into the possibility,
nor is the newspaper's parent company. Redesigning a newspaper can be a rewarding but
challenging exercise. Based on what I've read in the trade press, the redesign of The Wall
Street Journal a couple of years ago was a painful experience, with traditionalists fighting to
maintain the look of the grey lady as the agents of change advocated the inclusion of more art
and color. The result is newspaper by committee. The Journal ended up with a blob of color
on its front page that not only is unappealing but also does nothing to benefit the reader.
An old saw among newspaper designers has it that USA Today taught editors to use color,
The New York Times taught them how to use it, and The Wall Street Journal taught them
how not to use it. Loyal readers will recall that we rolled out our own redesign about this time
last year. Guiding that effort was Ed Henninger, a newspaper design consultant based out of
Rock Hill, S.C. Henninger doesn't argue with Garcia's belief that the movement to tabloid will
occur over the next couple of decades. "It's a morphing that you will see more in Europe than
in the States for awhile," he says. "Here, I'd look for it first in larger markets - those where
people commute a lot." New York and Chicago already boast successful daily newspapers
that are published in tabloid format. They're a favorite of mass-transit travelers who find them
convenient to read while commuting. Daily newspaper publishers and editors might remain
reticent to consider the tabloid format because of its association with incredible and unserious
publications such as those found at grocery checkouts. That perception has changed as
specialty publications such as business journals have hit the streets. Ultimately, Garcia
believes, tabloid will be the format of choice for all newspapers. The reason is simple:
"Design is all about making stories easy to find, easy to read, attractive to the eye. The size of
the publication does not really affect these factors."

http://triangle.bizjournals.com; January 19, 2004
Newsprint
Global
UPM-Kymmene becomes UPM. Some employees have clamoured for dropping the difficultto-pronounce
"Kymmene" as long as customers and suppliers have stumbled over it, which is
one of the reasons UPM-Kymmene is now known commercially as "UPM." The name change
for the world's largest producer of magazine and catalog papers is occurring in conjunction
with a global re-branding campaign the Company is undertaking. "UPM" will be used in all
commercial communication (including sales and marketing, media relations, customer
communications, etc.). The Company, however, will continue to use "UPM-Kymmene" in
legal and financial transactions and communications, as well as in its Website and e- mail
addresses. The Company's Griffin logo also will continue to be used, accompanied by the
"UPM" lettering. The second half of the Company's unusual name (pronounced "Kim-Mea4-
Knee" by most North Americans and "Que4-Ma-Kna" by many Europeans) was formed when
the Finland-headquartered corporation was created in 1995 by a merger of Kymmene Corp.
and Repola Ltd. and its subsidiary, United Paper Mills Ltd. (UPM). Although the current
corporate entity is relatively new, its origins extend to the early 1870s when the Kymi (short
for "Kymijoki," or "mighty river" in Finnish) paper mill was founded along the banks of
Finland's well- known Kymi River. "Kymmene" is the Swedish language version of
"Kymijoki." Swedish enters into the Company's legacy because, in earlier times, much of
Finland's paper industry was run by its Swedish-speaking minority. (Sweden and Finland are
separated only by the Baltic Sea's narrow Gulf of Bothnia, and to this day, many Finns learn
to speak Swedish, in addition to Finnish and English.) This change applies to the Company's
Corporate, Paper and Wood Products divisions and their respective units and functions
throughout the 17 countries -- including the United States and Canada -- in which UPM has
operations. http://members.whattheythink.com ; January 20, 2004
Newsprint Pricing
Global
Abitibi ups newsprint price but resistance seen. Abitibi-Consolidated Inc., the world's largest
newsprint producer, will raise its newsprint price on Feb. 1 by $50 a tonne to try to return its
mills to profit, a company spokesman said on Tuesday. Analysts expected some client
resistance to the higher price and were divided on whether Montreal-based Abitibi would be
able to overcome it. "We are confident that the price hike will take hold in the market,"
Abitibi spokesman Marc Osborne said. "Prices must come back to reasonable levels," he said,
adding Abitibi itself had shown discipline by beginning the year with nearly a fifth of its
newsprint capacity curtailed. A spokesman of Gannett Co. , publisher of USA Today,
declined comment on the price hike. Gannett executives said last month they expected a small
increase in newsprint prices in 2004, but warned they would resist paying higher prices if
there was not "meaningful demand recovery". Newsprint producers have tried three $50 price
increases over the last year and half, but the price hikes only succeeded partially because of
the weak demand plaguing the newsprint market. Newsprint list prices were at $530 a tonne at
the end of 2003. D.A. Davidson analyst Steven Chercover expects newsprint demand to rise
slightly in 2004 because of the Olympic Games and the U.S. presidential elections, but he is
concerned with the long-term fate of the industry because of the rise of Internet publishing
and advertising. "We believe that newsprint has emerged as the poster child for a paper grade

in secular decline," he said in a recent research report. Deutsche Bank Securities analyst Mark
Wilde expects Abitibi's price hike to have partial success by mid-year. "What this hike doesn't
have is demand side support," he said in a research note. "There isn't any sign of a demand
pick-up yet." Richard Kelertas, analyst for Desjardins Securities in Montreal, disagrees and
said he thinks Abitibi will succeed in implementing the full $50 price hike by April, in part
because of possible strike in Eastern Canadian mills over labour contract renewals. In
Abitibi's case, labour contracts at half of its Canadian mills will expire in the coming months.
"Abitibi's timing is brilliant in that by announcing the price increase earlier rather than later, it
virtually ensures that this hike goes through," Kelertas said in a research note. Newsprint
markets have been suffering from weak economic growth of the last three years, and Abitibi
found itself in a tighter spot because of the sharp rise of the Canadian dollar over the past 12
months.
Newsprint is sold in U.S. dollars, but nearly two-thirds of Abitibi's production comes from
Canadian mills so its costs increase when the Canadian dollar rises. The Canadian dollar has
shot up nearly 20 percent against the U.S. dollar since the beginning of last year, while prices
have risen by only 12 percent. Abitibi stock ended down 22 Canadian cents at C$10.16 on the
Toronto Stock Exchange on Tuesday and down 14 cents at $8 in New York. The stock has
lost 20 percent over the last 12 months, while the stock of its closest U.S. rival, Bowater Inc.,
has gained 6 percent over the same period. ($1=$1.27 Canadian); Reuters,
http://biz.yahoo.com; January 13, 2004
� ONLINE / DIGITAL PUBLISHING
Electronic / Digital Publishing Generally
Europe
.eu domain names to be launched in November 2004. The European Commission has
announced that companies and individuals in the European Union will be able to start using
.eu domain names with effect from November 2004. A 'sunrise period' will be launched in
September 2004 to allow trademark holders to register domain names. From November 2004,
the .eu domain names will be offered on a first come, first served basis. Telecom.paper -
January 15, 2004; http://infonomics.nl; ICT Weekly of January 16, 2004
E-newspapers
United States of America
Paper or plastic? By next year, Philips Electronics and E Ink Corp. believe the answer will be
plastic - a flexible sheet of "paper" that displays electronic text… …and can be rolled up and
slipped into your pocket. Except for the lack of ink-stained hands, "it will look and feel just
like paper," said Darren Bischoff, senior marketing manager for Cambridge, Mass.-based E
Ink. E Ink, a private company with about 60 employees, has developed an electronic ink
system consisting of thousands of tiny capsules the diameter of a human hair. Those capsules
each contain small particles, some white, some black. An electric current can separate those
particles. "Like a Magic 8 Ball, one of those colours rises to the top," Bischoff said. Based on
the data fed to each capsule, the pixelated display can reproduce text or gray-scaled
photographs. This year, Philips and E Ink plan to introduce small, rigid screens made of glass
that use the electronic ink technology. But by 2005, Philips announced yesterday, a flexible
plastic model will be ready for commercial sales. The device itself may be very cheap - only

$10 a sheet. But consumers would pay to download the latest issue of a magazine, a
newspaper or perhaps even this story, using a cell phone hook-up. www.nypost.com;
January 27, 2004
Online Newspapers
United Kingdom
American Internet group Yahoo! is planning to increase the journalistic content of its UK
websites… …in a bid to use its famous brand name to supply rival newspapers with news and
comment. The company has poached the Daily Express comment editor, Simon Hinde, to
implement a strategy of producing original news and feature content across its sites. "The idea
is that Yahoo! wants to focus on content with a journalistic dimension to it, which has been
lacking in the past," said Hinde, who was with the Express for eight years. "There is a feeling
that there is an enormous opportunity to deliver content on the Internet... and that Yahoo! has
one of the best known names in the business." He said Yahoo!'s sites, which include news,
finance, sport, motoring and travel, will still use copy from news agencies, but will boost the
amount of stories produced by in-house journalists. And he is considering introducing feature
and comment pieces - a strategy that has been successful for Yahoo!'s sports site in the US,
according to Hinde. He said the opportunity to do "something challenging and new"
persuaded him to jump from newspaper to Internet journalism. "Newspapers are fairly static
beasts, and in the end there is not a lot of opportunity to build new ideas." Hinde's
appointment comes after the Internet giant hired Peter Grimsdale, Channel 4's former head of
broadband and cross-platform development, as its European editorial director.
http://media.guardian.co.uk; January 14, 2004
Redesigning / Restructuring Websites
International
International Herald Tribune to augment web site. The International Herald Tribune will
enhance their Web and print editions, reports dotJournalism. After conducting extensive
research during 2003, the international publication decided to improve its Web design and
update their site with more content and breaking news. "This is really a review of everything
on the site - the look and the functionality," said Web site editor Meredith Artley. Almost one
third of the content published is already exclusive to their Web site. The site is currently free
to access, although Senior Vice-President Didier Brun said they eventually "might consider a
paid element to certain sections of the site." The OnlineJournalism.com Newsletter for
January 20, 2004
Weblogs
United States of America
Reporters are finding themselves being reported on this campaign season… …reports Wired
News. A handful of keenly observant bloggers are engaging in "adopt a journalist" where they
follow one specific political reporter's coverage, analyze and report on it for any potential bias
or mistakes. One of the first to "adopt" was Tim Withers who runs The Wilgoren Watch -- a
chronicle of New York Times' reporter Jodi Wilgoren's coverage of the Howard Dean
campaign. He started the blog after becoming dissatisfied with her articles on his favourite
candidate. But Wilgoren isn't the only one being watched -- the Washington Post's Ceci
Connolly and the Associated Press' Calvin Woodward are just two of many journalists who

have become the subject of blogs. Robin Stelly, who's tracking Woodward, said: "The point
here is not to skewer. It's watching to make sure (the reporters) are on target." What do
the reporters think of having the tables turned on them? "It's always great to have people
reading my work and discussing it," said Wilgoren, but added that some of the posters seem to
be looking for "evidence to make a particular argument from a particular point of view."
www.wired.com; The OnlineJournalism.com newsletter for January 28, 2004
United States of America
The New York Times launched its first weblog January 28. "Times on the Trail" is a new
"continuously updated report from the campaign trail reported and edited by the Washington
bureau of The Times and produced by NYTimes.com." "On the Trail" includes an excellent
collection of well-organized links in the right column, including "a selective guide to today's
campaign coverage on the Web" -- the first time we've seen The Times link so extensively to
competitors' sites. And editor's note on the first Political Points post says, "This is the first
edition of a new web-exclusive feature by Carl Hulse and other Times reporters that will be
added to and updated throughout the day. " The Times' has been weighing using Weblogs for
some time now, so this is not really a surprise. Regular readers of CyberJournalist.net know
The Times has already been experimenting with the format in "Kristoff Responds," a
Webloggish forum in which Nicholas D. Kristof, Op-Ed columnist for The Times, answers
reader e-mail and gives "the story behind the column." www.cyberjournalist.net; January 28,
2004
Photoblogs
Argentina
Argentine radio show 'La Cornisa' has established what is believed to be the first photoblog
offered by a radio or TV programme. Designed to provide extended news coverage for its
audience, the site works in the same way as a traditional blog, but with images taken by a
camera on a mobile phone. La Cornisa broadcasts politics and general interest on weekday
mornings from Buenos Aires, Argentina's capital. The photoblog was launched on 8
December by La Cornisa sports columnist Fabián Tetelboim, who flew to Tokyo to cover the
Intercontinental Cup football match between Boca Jrs and Milan. Images are emailed from
the phone and uploaded straight to the textamerica.com, a community web site for mobile
phone bloggers or 'mobloggers'. The site is completely free to use. La Cornisa’s project was
directed by Julián Gallo, professor of new media journalism at the Universidad de San Andrés
in Buenos Aires. "For us, it is an impressive development in the production and distribution of
news," said Mr Gallo, former creative director at clarin.com, one of Argentina’s biggest
media organisations. "We haven't seen any other radio or TV channel which is using
photoblogs, but we believe it will soon become general practice." Technology has always had
a significant impact on journalistic practice, says Mr Gallo, and photoblogs offer the chance
to present some unique and intimate images. He says that mobile phone cameras can create
the style of candid photography typified by Erich Salomon, the 20th century German
photojournalist who became known for his portraits of politicians and public figures caught
off-guard. “The fact that they are low quality photos does not pose a problem. They are
opportunistic photos whose interest goes beyond resolution," he told dotJournalism.
"Anyway, the technological capacity of phones will soon allow a quality that will be more
than enough for online photography." From February, La Cornisa's photoblog project will be
sponsored by one of the country’s mobile phone operators, giving the station a new income
stream. The team also wants to extend the coverage to include video clips on the blog.
http://www.journalism.co.uk; January 13, 2004 ��

PR in News Content
United States of America
PR Newswire and The Arizona Republic, the nation's 11th largest daily newspaper,
announced a strategic relationship… …in which PR Newswire will provide direct access to
news releases issued by its members on www.azcentral.com, the newspaper's affiliated
website. The largest and most-visited local site in Arizona accessed by more than 2.8 million
visitors each month, AZCentral.com combines news and information from The Arizona
Republic and KPNX-NBC TV News, and is a member of the Real Cities Network, a national
collection of sites in major cities. Launched in 1995, AZCentral.com is one of the first online
sites created by a U.S. daily metropolitan newspaper. "The Southwest represents one of the
more rapidly growing regions in the United States, and PR Newswire is very excited to be
able to offer our members direct communication channels to that area through a site visited by
so many local residents," said PR Newswire Managing Director, Targeting Services, Ken
Dowell. Access to PR Newswire content will be available at
http://www.azcentral.com/business/, the "Money" page of AZCentral.com. Visitors can
choose to view news releases from Arizona businesses and institutions or they can retrieve
releases from PR Newswire's entire database by searching under specific industry and subject
headings. In either instance, users will have access to news releases the moment they are
disseminated by PR Newswire. Now in its 50th year, PR Newswire Association LLC
(www.prnewswire.com) provides electronic distribution, targeting, measurement, translation
and broadcast services on behalf of some 40,000 customers worldwide who seek to reach the
news media, the investment community and the general public with their up-to-the-minute,
full-text news developments. http://biz.yahoo.com; January 28, 2004
Selling Online Content / Payment Channels
United States of America
USA Today's digital edition offered free to travellers. Guests of more than 700 U.S. hotels,
airports and restaurants can receive a free trial of USA Today's digital edition, reports Poynter
Online. Travellers will be offered a three-day trial subscription to the paper's digital edition
and are eligible to receive additional discounts if they become permanent subscribers.
Wireless access to the Internet will be provided by the Wayport company. Hosting
participants include the Dallas Fort/Worth International Airport, Hilton Hotels and over 100
McDonald's fast-food restaurant chains. USA Today joins The New York Times as the second
newspaper to offer the promotion to travellers. http://www.usatoday.com; The
OnlineJournalism.com Newsletter for January 7, 2004
Online Advertising Statistics / Forecasts
Global
Internet advertising grows: are habits changing ? Against the background of almost
continuous consumer confidence in the UK, advertising and the attendant revenue generating
opportunities have, since the beginning of the decade, maintained a important role for owners
of most commercial web sites. Despite the absence of much detailed statistical information,
the presence of advertising revenue of the web continues to grow compared with other media
outlets. Internet advertising continues to take two forms. There is niche advertising for
products and services for specialist sites, with a community with demonstrable potential
interest in the products and services provided by the advertiser. Secondly transaction related

advertising continues to grow. Greater access combined with penetration of ownership of
access devices has helped. Transaction security has improved exponentially encouraging and
increasing confidence in the integrity of on line transactions. Increased availability of product
and services and the immediacy of price discovery and transparency have encouraged the
growth of consumer advertising where a spontaneous and immediate decision is likely.
Fulfilment servicing has improved immeasurably over the past 4 years and there is empirical
evidence that advertisers can fulfil high volume demand. Ironically, weakening exchange rate
of the US$ against the Euro has stimulated the growth of purchases by European consumers
from the USA locations through commercial web sites. How much of this evades requisite
import taxes and duties is a matter of conjecture. How temporary this is will, of course,
depend on exchange rate movements between the US$ and Euro over the next year to 18
months. Decline in other areas of advertising continues to help the growth of Internet
advertising revenues. Television and newspaper advertising continue to decline against a
background of continuing consumer confidence in the UK. The reasons are primarily
domestic. The decline in newspaper circulation continues both amongst the tabloids and broad
sheet newspapers. Increasingly broad choice of news, analysis and commentary from the
multiplicity of radio and television stations. No longer the immediate channel to new and
commentary for those except the over 60's, it is hard to see such revenues doing more than
maintain an imperceptible decline. However, heavy spending continues by advertisers on
specific brand promotions and advertising by the retail sectors in the television and newspaper
media. Television continues to attract increasingly lower viewing figures. This can be
attributed to the wider selection of channels. The more important reason may be found in the
poor quality and populist programming for those of limited education. The traditional loyal
middle aged viewer is particularly offended by much of the quality of material on commercial
television. Global issues continue to affect television advertising. US Companies, though
global in aspiration veer to parochial sentiments. If the economy is experiencing difficulties in
the USA, there is a presumption that the rest of the world suffers. That is true only to a very
limited extent. In practice US Companies maintain control of advertising budgets and buying
power centrally. As the US economy resumes growth, US Corporates should not assume the
same is happening elsewhere, particularly in most of Europe, which is suffering from the
effects of strong Euro and weak US $. In Europe and the Middle East the brand "USA" may
be starting to suffer growing hostility, through its extra national role in Iraq and deteriorating
relations with Europe. www.it-director.com; January 27, 2004
Online Classifieds – Jobs / Recruitment
United States of America
Over 800 newspapers hosted by TownNews.com will be able to post their employment
classifieds into The Job Network at no charge. Newspapers will be able to have co-branded
Job Network sites for as little as $75 a month. The companies announced the joint venture at
the Newspaper Association of America’s new media Connections conference in San Diego.
"Newspapers have suffered huge losses in employment recruitment advertising since 2000.
We think The Job Network will help reverse that ominous trend," said Marc Wilson, chief
executive officer of TownNews.com, a Moline, Ill., based company that is 80 percent owned
by Lee Enterprises. In 2000, newspaper classified advertising totalled more than $19.6 billion.
That total fell to $15.9 billion in 2002, with almost all the losses attributable to losses in
recruitment/employment advertising. In 2000, newspaper recruitment advertising totalled $8.7
billion, but dropped to $4.3 billion in 2002 and an estimated $3.75 billion in 2003, according
to the NAA. "Mega job sites such as Monster.com and HotJobs.com are continuously taking
market share away from newspapers," said Gal Almog, chief executive officer of Redmatch, a

world leader in online employment solutions based in Tel Aviv, Israel. "Linking your
newspaper to this network will help papers create new and significant revenue opportunities,
while protecting your current installed customer base." Newspapers participating in The Job
Network will be able to port their display ads into the network at no charge. They also will be
able to offer their customers a number of up-sells that will make it easier for employers to find
employees, and job-seekers to find jobs. "Newspapers will be able to compete better," Almog
said. "They will be able to promote to their community that all their employment ads will be
published in a national recruitment system that is promoted by many other newspapers across
the nation." This technology, Wilson added, will enable community newspapers to reinforce
and regain their position as the best medium to look for jobs and employees. "Many
newspapers no longer attract the recruitment advertising that is done by local hospitals,
colleges and industry because this type of advertising has steadily moved to the Internet,"
Wilson said. "Now, the local newspaper can offer the best of all worlds -- print, local online
and national online advertising. Advertisers can find no better value!" Once a newspaper
agrees, TownNews.com will link the paper’s website to The Job Network, and provide you
with the necessary information and training to start generating additional revenue. All future
employment/recruitment ads automatically will be posted onto the network. The Redmatch
technology provides employment features and content, including job searching, real-time job
matching, online application, resume management and more. Your website’s visitors will gain
access to the largest interactive salary survey in the United States. These services will be
provided to participating newspapers at no cost. Participating newspapers will be able to offer
job advertisers the opportunity to upgrade their ads. Upgrades include greater exposure, better
screening and higher visibility. www.onrec.com; January 21, 2004
Online Classifieds – Automobiles
United States of America
The 1,400 local automotive sites run by daily newspapers in the Unites States are pulling in
US$150 million among them… …according to “Local and National Automotive Advertising
Online: Review and Outlook,” the latest instalment from Borrell Associates’ Classifieds
Research series. Cumulatively, this is the largest amount being made online from automotive
advertising. By means of comparison, Autotrader.com, the next largest player, brings in
US$120 million. The newspapers’ US$150 million represents 17 percent of all their online
revenue. Online advertising currently captures 4.5 percent of all automotive ad spending.
While this is sizeable, it falls short of the 60 percent portion of car buyers who check out at
least one Internet site during their automotive research. One can easily imagine that online’s
share of the US$31.8 billion spent on auto ads will inevitably grow. Newspapers are in a
strong position to leverage their position in the community with online auto advertising. To be
certain, they face stiff competition from the likes of Yahoo!, AOL, and MSN on the portal
front; from Autotrader.com, Autobytel, AutoConnect on the vertical front; and from eBay
Motors on the specialty front. Ideas magazine, November 2003
Online Auctions
United States of America
CityXpress reports increasing adoption of online newspaper auctions. The Houston Chronicle
and St. Louis Post-Dispatch lead more than 60 newspapers already contracted for auctions in
next six months. CityXpress Corp., the leading supplier of event auctions for newspapers,
today announced it has signed agreements with 65 newspapers to stage event auctions in the
first six months of 2004. The newspapers slated for auctions include those owned by Knight

Ridder, MediaNews Group, McClatchy Company, Hearst Newspapers, Lee Enterprises,
CanWest Global Communications, as well as other major chains and independents. "The
number of newspapers contracted to run auctions has more than doubled over last year at this
time," said Phil Dubois, president and CEO of CityXpress. "This increasing and widespread
adoption is a clear indicator that newspapers, with their unique local focus, will play a
significant role in the online auction world." Dubois cites the proven success of CityXpress
auctions as a driver behind the growth in newspaper auction numbers. CityXpress reports that
of the auctions scheduled in 2004, half are repeat auctions for existing clients. The company
has staged more than 130 auctions that have generated more than $27 million in revenue and a
significant increase in new advertisers for its newspaper clients. Newspapers scheduled to
launch their first XpressAuction events in the next six months include: The Houston
Chronicle, The Commercial Appeal in Memphis, Tenn., Charlotte Observer, Pittsburgh Post-
Gazette, Fort Worth Star-Telegram, and The Sacramento Bee. Following successful event
auctions in 2003, newspapers slated to stage repeat XpressAuction events in 2004 include: St.
Louis Post-Dispatch, Omaha World-Herald, Raleigh News & Observer, Vancouver Sun/The
Province in Vancouver, British Columbia, and the Star Tribune which serves the
Minneapolis/St. Paul area. The company also recently expanded its auction offerings to
include ongoing or "continuous" auctions for both business-to-consumer and consumer-toconsumer
segments, and expects continued growth of both new clients and expansion of
services to existing clients in 2004. CityXpress (www.cityxpress.com), the leading supplier of
event auctions and online special sections for the newspaper industry, has pioneered event
auctions for newspapers since 2001. http://home.businesswire.com; January 20, 2004
Audience Research
Global
Adult Internet user from any device or location - past 30 days
% Million Growth 03 vs. 02
Canada 71% 16 +15%
South Korea 70% 23 +32%
U.S. 68% 128 -6%
Japan 65% 56 +38%
Germany 60% 39 +40%
U.K. 54% 23 +8%
France 43% 18 +14%
Source: IPSOS-Insight, The Face Of the Web; A.N.I.M.A.’s Newsletter, January 26, 2004
End-User Behaviour
International
Study: Net users watch less television. The average Web surfer maintains a more active
social life and watches up to five hours less television per week than non-surfers, according to
a 14-country survey including residents of the United States, Great Britain, Hungary, Chile,
South Korea and Macao. "Use of the Internet is reducing television viewing around the world
while having little impact on positive aspects of social life," said Jeffrey Cole, director of the
Centre for Communication Policy at the University of California at Los Angeles, which
organized the study. Internet users, the study says, also read a lot of books and most believe

that most online sources are trustworthy information sources. The Internet as a social medium
was most popular in China, connecting users with similar political and religious opinions in a
country where religion is banned. Although the study confirmed that the Internet is more
frequently used by the wealthy, in seven of the countries surveyed, more than 20% of the
poorest residents go online. http://reuters.com; www.cnn.com; The OnlineJournalism.com
Newsletter for January 14, 2004
Digital Delivery of Newspapers
United States of America
New service to provide libraries with same-day print-on-demand and online editions of the
world's newspapers. NewspaperDirect (www.newspaperdirect.com), a technology company
specializing in the digital delivery of same-day editions of newspapers from around the world,
will be launching a digital newspaper service for libraries at the American Library
Association's Midwinter Meeting. This service enables libraries to provide their patrons with
same-day editions of out-of-state and international newspapers. The company's technology
provides the flexibility to print on industry standard laser printers or view replicas online in a
web browser. NewspaperDirect's catalogue of titles includes more than 185 newspapers from
around the world. Publishers send files electronically to the company daily, and
NewspaperDirect optimizes them for laser printing and online viewing. Titles available on the
system include: Los Angeles Times, Boston Herald, Chicago Tribune, Washington Post,
Sydney Morning Herald, La Stampa, Le Monde, Folha De S. Paulo, and Yomiuri Shimbun.
"The selection, cost-effectiveness and timeliness of our new service surpass traditional
delivery," said NewspaperDirect Vice President of Sales & Marketing Richard K. Miller.
"Our pilot at the Vancouver Public Library demonstrates that libraries can cut costs, reduce
waste and offer a wider selection of newspapers with our service." NewspaperDirect will be
demonstrating its print and online systems at the ALA Midwinter Conference January 9-12,
2004 in San Diego, CA. In addition, NewspaperDirect will be raffling off a free contract for
the service to eligible U.S. libraries at the conference. NewspaperDirect extends the reach of
newspaper distribution. The combination of proprietary technology, local printing, and
PressDisplay.com, deliver same-day editions of newspapers from around the world to readers
everywhere. With over 185 newspaper titles and distribution outlets in 66 countries,
NewspaperDirect delivers to corporate offices, hotels, cruise ships, retail outlets, home
subscribers, and web browsers everywhere. http://home.businesswire.com; January 6, 2004
Spam
Global
The scourge of junk email reached new proportions at the end of 2003 with nearly two out of
every three messages sent worldwide being an unwanted advertisement. The latest statistics
from UK-based email filtering company MessageLabs indicate that 62.7 per cent of all global
emails sent during December were spam. The company scanned over 463 million messages.
In November the figure was 55.1 per cent and in October 50.5 per cent. In some countries, for
example Australia, more than two thirds of all December messages were junk. The majority
of spam comes from computers running unsecured mail servers, known as an 'open proxy'.
Furthermore, a number of recent computer viruses have been designed to convert infected
machines into open proxies. The seemingly inexorable rise in spam suggests recent legislation
introduced in the US and Europe aimed at curbing the problem has had little effect.
New Scientist - January 13, 2004; http://infonomics.nl; ICT Weekly of January 16, 2004

Europe
A survey by a software publisher says European businesses are sceptical about the EU's
recently adopted anti-spam directive. According to a survey conducted by US software
publisher Syberi, nearly half of the respondents from 130 ICT companies in 15 European
countries believed legislation attempting to stop spam would have "no effect" on the amount
of junk e-mails they receive. In addition, 48% thought their governments would be
"completely ineffective" at enforcing the spam laws once they were in place. Only 5%
believed legal efforts at trying to curb spamming would completely stop the phenomenon. But
the study also suggests scepticism about legislative attempts at reducing spam may derive
from ignorance and lack of a clear definition of what spam actually is. When asked if they
knew the maximum penalty incurred in their country for sending unsolicited e-mail, nearly
80% said they did not know or were not sure. And nearly 70% stated that their company had
not produced a written document in which they define spam. The survey was published
alongside a preliminary study by the Institute of information law (IViR) in Amsterdam on the
EU's anti-spam directive. The study says data protection laws are "very appropriate to tackle
at least the fundamental problem of harvesting and selling e-mail addresses" but that
spamming itself would probably remain difficult to eradicate completely.
http://www.euractiv.com; December 16, 2003
Broadband
United Kingdom
The telecommunications company, BT, is installing equipment that allows customers with a
laptop computer to access the internet without wires in 500 McDonald's outlets across the
UK. BT intends to aggressively push the benefits of public access to broadband without wires
- or wi-fi - this year. There are already 1,700 locations across the country, from train stations
to pubs, where customers can log on with a subscription to BT's Openzone product. BT has
plans to have a total of 4,000 so-called wi-fi hotspots by the summer. But BT has so far
provided little information about how many people are using the service. Many new
laptops have the technology to access wi-fi built-in, but anecdotal evidence suggests
consumers have been slow to surf using their own kit while in public. All BT will say is that it
has 100 corporate customers signed up to its wi-fi product. http://media.guardian.co.uk;
The EJC Media News Digest of 8 January 2004
United States of America
Study reports soaring U.S. broadband usage. About 50 million home Internet users in the U.S.
connect through high-speed broadband, reports a new Nielsen/NetRatings study. That
means over one-third of all home Internet users have broadband. The new figure
shows a 27% growth in high-speed connectivity since May 2003. Yet, the number of people
connecting through lower-speed connections, or narrowband, stayed the same at 69.6 million
within the same period. This increased broadband usage triggers a domino effect; the use of
high-speed applications like on-demand video and flash-based content in advertising is also
up. Nielsen/NetRatings noted that 17% of all online ad impressions were rich media
ads, up 10 percentage points from a year earlier. www.nielsen-netratings.com; The
OnlineJournalism.com Newsletter for January 11, 2004

� EDITORIAL CONTENT
Image & Credibility & Perception of Newspapers
United States of America
The newspaper USA Today disclosed its own Jayson Blair-style scandal January 13. The
national newspaper printed a half-page mea culpa, admitting that its star foreign
correspondent, Jack Kelley, had "repeatedly misled editors" during an internal investigation
into the veracity of his work. Mr Kelley, 43, had been with the paper since its launch in 1982
and was a Pulitzer Prize finalist in 2002. He was forced to resign last week. On one occasion,
Mr Kelley invented a witness to corroborate a story he reported from Belgrade in 1999. He
confessed to the hoax two months later, but only after the paper had found he had convinced a
Russian translator to pretend she had been at the interview in question. The paper also
published Mr Kelley's rebuttal, stating he was the victim of professional jealousy.
http://media.guardian.co.uk; The EJC Media News Digest of 14 January 2004
Journalist’s Craft
Global
The increasing numbers of cross-media news gatherers are more often referred to as backpack
journalists. The term imagines a reporter trekking to a remote news event, unslinging a
backpack of high-tech gear including laptop, digital cameras, voice recorder and
communications devices, and then dispatching all manner of text, photos, video, audio,
graphics and Web updates to a variety of waiting editors and news consumers. This is the
scenario around which Ifra based this year's cycle of its Advanced Journalist Technology
Project. The project annually evaluates hundreds of hardware and software products for their
application to the news industry's evolving multiple-media editorial environment. The most
innovative and practical earn Ifra's NewsGear designation and are combined into a
demonstration suite as a model for news organizations and news technology vendors
worldwide. The 2004 NewsGear suite has been dubbed the Backpack Edition and would be of
particular interest to those original journalistic platypuses because it features one of the first
digital cameras on the market able to produce both newspaper-quality still photos and
broadcast-quality video – the Sony DCR-PC330. Its 3.3-megapixel digital imager
has more than twice the resolution of normal video cameras, giving it enough detail for still
image reproduction at common print sizes and normal quality standards in newspapers. As a
result of the DCR-PC330 and its certain-to-follow competitors, convergent photographers will
increasingly start to carry one camera instead of two and cross-media newsrooms will start
rewriting their image workflows. Another innovation in NewsGear 2004 is the Nokia 6600
Imaging Phone. This is a second-generation mobile camera phone suitable for real-time
newsgathering via VGA JPEGs, Web-resolution video with audio, and even low-res
streaming video. Mobiles are becoming indispensable for connecting increasingly distributed
news staffs, plus extremely viable for transmitting acceptable-quality first-on-scene images
and audio from a live news event. Also receiving the NewsGear designation for 2004: * The
Toshiba Portégé M200 second-generation tablet PC able to record reporters' handwriting and
convert it to text. * The Apple iSight firewire-based, high-resolution video-chat system. *
Serious Magic Visual Communicator Pro, the upgraded broadcast-quality version of unique
software that simplifies production of video news content so that even print-oriented

newspaper staffs can do it well. * Archos' AV320 digital media recorder and 3.3-megapixel
AVCam 300 attachment, creating an all-in-one digital media newsgathering tool for
Web-quality video, print-quality stills & broadcast-quality audio. * The Emergecore IT-100
Network Appliance combining all the connectivity and network management required for
a bureau or small newsroom into a laptop-size box with almost no support demands.
Newsplex Trends Report, No. 4; January 2004
Hungary
The conservative daily, Magyar Nemzet, lost three lawsuits in the Metropolitan Appeals
Court, all of which are related to false claims printed by the newspaper… …regarding the
K&H Equities brokerage scandal, Nepszabadsag reported. In the first case, the court ruled that
Magyar Nemzet created the false impression that Prime Minister Peter Medgyessy
was still head of the Inter-Europa Bank beyond 30 September 2001, when individuals
implicated in the K&H scandal withdrew large amounts of money. In the second ruling, the
court found that the daily falsely claimed that Medgyessy's chief of staff, Tibor Draskovics,
held a senior position in a company at which disgraced broker Attila Kulcsar also worked.
Finally, the court ruled that the daily improperly linked the coalition Free Democrats to the
K&H scandal. The court ordered the newspaper to print corrections in all three cases.
www.rferl.org; The EJC Media News Digest of 8 January 2004
Acquiring / Providing Content
Switzerland
«La Liberté» in Fribourg and «Le Nouvelliste» in Sion have signed a cooperation agreement.
The objective is to increase the editorial exchange and to cooperate in several areas to offer
more benefits to readers. The agreement focuses on the editorial production, the compatibility
of information systems, as well as marketing and distribution issues and education of coworkers.
Editorial synergy has been in place since last year, especially in the Federal Palace.
http://www.edicom.ch; January 17, 2004
Letters to the Editor
United States of America
E-mailed letters to the editor canned. Readers who submit online letters to the editor may
have a more difficult time accessing the editor's e-mail address, reports Poynter Online. For
example, in lieu of accepting letters via e-mail, the St. Petersburg Times now requires their
readers to submit their commentary using a Web-form over the Internet. Poynter Institute
Senior Editor Steve Outing said an abundance of spam mail forced the change in policy. He
suggests that publications who follow the Times' solution create an auto-response to their
letter-writer's e-mail containing Web-form instructions. www.poynter.org; The
OnlineJournalism.com Newsletter for January 14, 2004
Redesigning / Restructuring Newspapers
International
The International Herald Tribune announced a major expansion of its coverage… …from
European business and work-force issues to technology, communications and travel, with the
aim of providing more comprehensive news for the business reader. At a news conference in
Paris, where the newspaper is based, the publisher, Michael Golden said, "Our goal is to

create a newspaper that's a truly unique blend of expertise that will enable it to speak to a
global audience on virtually every topic." The IHT was jointly owned by The New York
Times and The Washington Post in a partnership until the beginning of last year, when The
Times bought sole ownership of the paper. Golden, who is also vice chairman and senior vice
president of The New York Times Company, heralded The Times's plan to join forces with
and invest in the IHT to enhance what he called "one of the strongest brands in journalism."
"We're investing in the IHT," he said, "adding reporters to work directly for the IHT because,
as excellent as the news report of The Times is, it's not sufficient alone to serve our readers.
The IHT has to be able to cover stories critical to its readers that are of less interest on the
other side of the Atlantic." Golden declined to give specific figures on The Times's
investment or the financial situation of the IHT. Among the measures announced was the
addition of at least 12 journalists. They will provide additional coverage of Germany and
Eastern Europe, of issues affecting current and future citizens of the enlarged European
Community, technology and communications, health and the environment. Prominent among
new columns will be a twice-weekly European affairs outlook by Roger Cohen, until recently
The Times's foreign editor, and a column on international markets, inaugurated on Jan. 9, by
Floyd Norris, chief financial correspondent of The Times, who will also be covering
European business and economic issues. John Darnton, a Pulitzer-prize winning Times
reporter, will return to Poland to look at the increasingly rapid changes in Eastern Europe.
A column by IHT London correspondent Eric Pfanner will look at the advertising industry,
and Doreen Carvajal will cover changes issues in the European work force as the EU expands
its membership. Additional space will be given to the Op-Ed page, which features opinion
columns from around the world. Serge Schmemann, editor of the IHT's editorial page and a
member of The Times's editorial board, said the IHT would expand its own voice both in
editorials and Op-Ed contributions from outside the paper, "to stir up as much debate as we
can," and not represent "some specific point of view." Business travel news will expand,
appearing on the back page with weather news, tips on doing business in cities around the
world and the newest in technology as it affects frequent travellers. Golden also said that the
NYT will invest in marketing and advertising for the IHT. Editorial colour will be introduced
to the front page in the spring. Attention will be given to improving the IHT's web site. And
the IHT will continue its program of publishing partnerships with several newspapers around
the world. "With more business coverage," said Walter Wells, the executive editor, "we can
compete more robustly for all the readers - business readers or otherwise - who approach a
newspaper not just to check share prices or follow one narrow sector or another, but who
come to a newspaper with deep curiosity about what's happening in the world at large."
Asked during the press conference whether the IHT was seeking to position itself as more of a
business newspaper in order to compete with similar publications, Golden said, "We are in
competition with The Financial Times and The Wall Street Journal, but not directly." He
added that "our breadth on every subject is important," providing "the full spectrum" for IHT
readers. www.iht.com; January 15, 2004
India
Five years after setting foot in Kolhapur, Maharashtra, the Lokmat Group of Newspapers,
plans to overhaul the existing edition… …in keeping with current tastes and trends in the
marketplace. The edition will be relaunched by the middle of next month with a renewed
focus on quality and content, says Rishi Darda, executive director, Lokmat Group of
Newspapers. “We felt that the product was not up to the mark,” he says, “which is why the
relaunch.” The product rejig coincides with the setting up of a state-of-the-art production unit
at Kolhapur, implying that bulk print orders can be taken to meet increased demands from
readers in the region. Currently, the Kolhapur edition is printed at the group’s production unit

located at Sangli with the print order in the region of 82,000 copies. “We are looking at an
output in the region of 2.25-2.30 lakh copies,” says Darda about the new unit’s production
capacity. The processing unit will also be able to handle more number of pages per issue as
well as an increase in the number of colour pages. Currently, the Kolhapur edition consists of
20 pages, that is, the main issue plus supplements, which can go up to almost 28 pages with
the increase in capacity, points Darda. The group is also looking at an increase in the number
of supplements per week, which stands at three at this point in time. Incidentally, a similar
upgradation of production capacity has been undertaken by the group at its printing units
located in Mumbai, Pune and Nagpur, the total investment of which is in the region of Rs 100
crore. For the Kolhapur edition, an extensive survey of households was carried out in the
second half of last year on the back of which the group has initiated the relaunch this year.
The edition is of significance considering that it feeds the adjoining districts of Sangli and
Satara, and, with the formation of a state-of-the-art unit at Kolhapur, the group is hopeful of
extending the edition’s reach to neighbouring Goa and Karnataka as well. Located in the
south of Maharashtra, Kolhapur has traditionally been an important area with booming sugar
and cooperative (read dairy) industries as well as a thriving political culture. Print advertisers,
according to Darda, emanate from the sugar, cooperative and educational sectors with
political parties chipping in as well. Lokmat’s rivals in Kolhapur include Pudhari and Sakal,
whose circulation, according to the January-June 2003 period of ABC stands at 2.11 lakh
copies (figure for Pudhari only; Sakal not certified for this period), while Lokmat clocks
around 12,000 copies in Kolhapur, 60,000 copies in Sangli and 10,000 copies in Satara (CAcertified
figures). Alongside, the group plans to look at events in a big way with the formation
of Lokmat Community Initiatives some time ago. This division has three units – Bal Vikas
Manch, Sakhi Manch and Yuva Manch – with focused events targeted at women, children and
the youth. “This obviously helps in targeted marketing, and quite a few advertisers have
partnered with us including HLL, Cartoon Network, Navneet Publications and Camlin,” he
adds. www.agencyfaqs.com; January 28, 2004
United Kingdom
It is one year to the day since Rebekah Wade became the first woman to edit the Sun.
When her appointment was announced on January 13, 2003, the question on everyone's lips
was "What changes would she make?". Would she strike a blow for feminism and scrap Page
3? What would it mean for the Sun's relationship with Labour? Would she be consumed by
the same zeal that led her, as editor of the News of the World, to campaign for the naming and
shaming of paedophiles? While her efforts to date have earned her the respect of both her
rivals and her employees, the revolution has not yet arrived. The Sun has enjoyed some strong
front pages over the last year, but has failed to match the TV headline-grabbing royal scoops
of the Daily Mirror, while circulation has plummeted to a 30-year low. Wade promised to
inject more fun into the Sun than David Yelland - and Mirror editor Piers Morgan believes
she is a vast improvement on Yelland, with whom he famously sparred. "She is massively
better than her predecessor. Both in the hair and talent department," he quipped. But what has
Wade actually achieved in the last 12 months? Here MediaGuardian.co.uk looks at the
milestones of 2003.
1. Kept Page 3
2. Said 'no' to domestic violence
3. Turned nasty on New Labour
4. Axed "yoof" columnist Emma Jones
5. Took on the asylum seekers
6. Admitted paying police for stories
7. Beefed up showbiz and TV

8. Supported Blair in the war
9. Opposed EU constitution
10. Lost out on royal scoops
11. Branded Bruno "bonkers"
12. Sporting hurdles
13. Happy campers brainstorming session
14. Cover-up claims
15. Circulation lowest for 30 years
http://media.guardian.co.uk; January 13, 2004; please read also MEDIA MARKET DATA –
Media Markets and Newspapers
Good News Papers
Germany
Berlin daily newspaper, the Berliner Morgenpost, appeared containing almost nothing but
good news. Editor-in-chief Jan-Eric Peters said bad news would not be suppressed, but would
be confined to small boxes on the page. The newspaper will go back to the usual mix of news,
but for one day, readers are able to discover what a wonderful city they live in. Political and
sports news and features will also be positive. "We'll have a report from South America for
example that a leading Colombian rebel has been caught. A terrorist leader being caught is
good news too," said Peters. The German newspaper, which normally has 32 pages, will be
expanded to 48 pages to contain all the cheery reports. The idea had come from newspaper
staff, which pointed out there was much to praise in the city. To ensure the positive stories
were not swamped by the gloom, they were being concentrated one issue. "Fortunately,
nothing really negative happened today, but of course if a bomb were to go off, we couldn't
confine that news to a little box," said Mr Peters on Sunday afternoon, just a few hours before
the paper went to press. www.iol.co.za; The EJC Media News Digest of 5 January 2004
� YOUNG READER
Publications by Children for Children
United States of America
‘The NOISE’, a special section of the Gettysburg Times made by students. Students from all
over Adams County will make their journalistic debuts on Tuesday, when “The NOISE” hits
the streets as a special section of the Gettysburg Times. The new venture is a broadsheet
newspaper written by, for and about teens. Initially it will be published on the second Tuesday
of every month. “We start monthly and hopefully, as demand increases, we hope to increase
the section frequency,” said Times Director of Operations Tom Ford. “That depends too on
student involvement.” The student staff consists of 17 students in grades 9 to 12 from Adams
County area high schools, as well as local homeschoolers. Their mission is to provide
information that is informative and entertaining to the teen-age population in the county, as
well as provide insight for adult readers into the lifestyles and views of teens. “This is a very
time-consuming project,” said Times Features Editor and section coordinator Kami Masemer.
“There is a continuous correspondence between myself and the teens. These are not one-shot
stories. We are always writing and revising until we get to a final product.” The first edition
of “The NOISE” focuses on being “computer consumed,” and related topics. “On those first
four pages is an impressive variety of pieces written by students who are part of the wired

generation,” said Times Editor B.J. Small. “Readers will find a lot of student names and
perspectives in ‘The NOISE.’” The next edition, in February, will devote space to music
topics. “I was very impressed by the professionalism and initiative showed by the teens as
they conquered their first edition,” Masemer added. “They worked very hard and can be
proud of the product they have produced.” The teen section is a natural product for the Times.
“As a family-owned newspaper, it is a good extension of our award-winning Newspaper in
Education program,” Ford said. NIE Coordinator Donna White has played a key role in
getting “The NOISE” to, and through, the press. Ford added: “The industry has found that
today’s youth are not our traditional readers, and we have to make an effort to reach them.
This (special section) includes what they want to see. Student involvement has been great.”
http://www.gettysburgtimes.com; January 12, 2004
Marketing Projects
Japan
In fiscal 2003, the number of schools taking part in NIE activities grew by 21 to 389.
From the New Year's Message of NSK President Shinichi Hakoshima on Promoting
Newspapers In Education: “In 2003, the NSK Circulation Committee designated April 6 as
‘Newspaper Reading Day’ and the ensuing one-week period as "Springtime Newspaper
Week" to push campaigns to entice the younger generations, who constitute a large part of the
people who are not reading newspapers, to become subscribers. Through comprehensive
public relations activities aimed at non-subscribers, we can create situations that put the open
pages of current newspapers directly into the hands of prospective subscribers. In this second
year of this drive, our ad hoc sales promotion committee is set to launch a massive campaign
focusing on Newspaper Reading Day, using the experience that we have gained through our
‘Read Me.’ campaign that ran up until last year. By systematically combining the efforts of
our committees, we must generate a major industry-wide PR drive for new subscribers. At the
same time, we must continue to raise the profile of the NEWSPARK Newspaper Museum, the
Newspaper Foundation for Education & Culture and the Newspaper in Education (NIE)
program to foster future readers and supporters. In fiscal 2003, the number of schools taking
part in NIE activities grew by 21 to 389. With just the 23 more schools already designated by
our regional promotion councils, we will take the total number of schools in the program
beyond our target of 400. As for the new drive to deliver newspapers to all classrooms as
backed by the Japan Newspaper Sales Association in cooperation with the NSK Circulation
Committee, the Circulation Committee is soon due to announce its official position on
supplying the newspapers needed for the campaign. We expect that the newspapers will be
used as educational materials in as many classrooms as possible, thereby expanding NIE
activities.” NSK News Bulletin Online, January 2004; www.pressnet.or.jp/newsb/
� MANAGEMENT
Newspaper Innovations, Strategy & Visions
Canada
After surviving competitive threats over the decades from radio, television and most recently
the Internet, newspapers are primed to thrive in the fast-evolving electronic age. That was the
message yesterday from a panel of publishers gathered by the Advertising Club of Toronto for
a discussion on the future of newspapers. There's no better proof than the local explosion of

publications in recent years. "Toronto is without question the most competitive newspaper
market on the continent," said John Honderich, publisher of the Toronto Star, the country's
largest daily newspaper and the dominant newspaper in Toronto. The birth of the National
Post five years ago brought the city's tally of English-language daily newspapers to four.
Now there are two free commuter papers, with Sun Media's glossy 24 Hours recently popping
up to do battle with established player Metro, half-owned by the Star. And there are several
Chinese-language dailies plus dozens of community papers. "We're pretty overcrowded,'' said
Globe and Mail publisher Phillip Crawley. "There is a saturation point." The number of
publications has intensified competition for advertising, the lifeblood of newspapers. The
publishers made their best pitches to an audience largely made up of advertising buyers whose
job it is to place ads in newspapers, TV, radio and other media for their clients. "More and
more newspapers are becoming the sole mass medium, particularly for advertising, as
television becomes more and more fragmented," Honderich said. He noted an ad in the
Saturday Star reaches more people than watch the hit television shows Friends, ER and Law
& Order combined, or more people in southern Ontario than typically watch the Super Bowl.
Crawley mocked the "prophets of doom" in the late-1990s who said the Internet would usurp
newspapers. "How foolish their comments now look," he said. "Newspapers and online
actually complement each other." Crawley said the newspaper-Internet relationship is
growing to the point where the Globe is moving more in the direction of charging for access
to specialized Internet sites, particularly for investing but soon for the basic Globe Web site as
well. The National Post also is moving to charge more for its online content, with plans to
charge $10 monthly for an introductory subscription to an electronic replica of its daily
edition, said general manager Bob McKenzie. The next step will be a more interactive site
with embedded music and video, aimed at the youth market, possibly by late summer, said
Craig Barnard, national vice-president of reader sales and service for Post parent CanWest
Publications Inc. While the Star has a heavy presence on the Internet — it is one of the top 50
newspaper sites in the world with 30 million page views a month — readers still love their
paper copies because it's easy to take them anywhere, Honderich said. The Star is appealing to
the youth market in print as well as online, with its weekly Brand New Planet section aimed at
children in their "tweens" and the I.D. section for young adults, he added. Despite the advent
of free commuter papers like Metro and 24 Hours, Crawley said he doesn't see major
newspapers downsizing to the tabloid market, as has happened in Europe and Latin America.
For example, the prestigious London Times has taken to printing a daily tabloid edition in
addition to its regular broadsheet format to attract readers who have streamed on to crowded
public transit systems since the central London congestion tax was imposed on motorists last
year. "The costs must be pretty steep," said Crawley, who added he doesn't see the Toronto
market headed that way despite the growing influence of the commuter papers.
www.thestar.com; January 22, 2004
Germany
Concentration to be expected. In this country, where reading the local newspaper is an
essential piece of culture, the industry has been seriously hit. Here, there are no worries
concerning readership. Even if the advertising market is not buoyant, the newspaper segment
globally does slightly better than the average. (In 2003, compared to 2002, gross - Nielsen
MR: -2.1% for the "over-regional" titles but, +10.9% for the regional titles that make the
biggest part of the market, compared to +3.3% for the total advertising market). Here the main
problem concerns the small ads. During the last three years, classified advertising concerning
jobs decreased by almost 70%, from euro 320 million in 2000 to only 100 million last year,
along with -27% for home properties and services. According to a survey published mid-
December by Ernst & Young, it has declined enough to unbalance the traditional ratio: 2/3

from advertising, 1/3 from circulation. They also observed that the poor economic
background is far from being the only cause for it. The problem is deeper. It is the
consequence of the new media usage and the development of on-line offers. As a
consequence, the Süddeutsche Zeitung is facing its worst crisis, cutting jobs and pages. It is
not the only one. The survey forecasts heavy consolidation. Some up-market "over-regional"
titles will remain, together with the stronger regional groups. Most of the local sheets will be
swallowed or will disappear. Even the anti-trust law could be eased, after the hard time
Holtzbrinck is having trying to take over the Berliner Zeitung. In Germany, it is time for the
communications groups to re-consider their investment strategies. That could have direct
consequences in other countries. As we already reported, several German publishers have
given priority to their new developments in the Central European countries. That could also
have direct consequences in other media markets. Don't forget that most of the German
commercial radio stations are already in the hand of the press! A.N.I.M.A.’s Newsletter,
January 26, 2004
Japan
2004 prospects for Japan's newspaper industry by Nihon Shinbun Kyokai, the Japan
Newspaper Publishers & Editors Association. (1) Editorial affairs: Amid mounting awareness
about privacy and other human rights issues, the media will be keeping an eye on moves to
regulate its activities, starting by adequately responding to criticism from ordinary citizens. A
proposal to limit media coverage in relation to the planned introduction of a jury system is a
case in point. The government aims to introduce a bill for a jury system by March. A plan put
forward as a part of judicial reform proposed by a government study committee incorporates a
clause requiring the media to avoid implanting any bias in jurors with respect to ongoing
trials. However, the governing coalition Liberal Democratic Party and New Komeito, as well
as the opposition Democratic Party of Japan, appear to oppose that clause. The likelihood is
therefore that the government bill will not include it. Nevertheless, the possibility remains that
the government might try to set some kind of conditions on media coverage of trials. What is
known is that the LDP plan for the bill does include the study committee's proposed clauses
regulating media access to jurors and former jurors, as well as a juror obligation to keep
official secrets -- something that NSK strongly opposes. It is therefore likely that tough
restrictions will be imposed on such media coverage and NSK needs to consult more closely
with the parties concerned and continue considering what such restraints might do to newsgathering
activities. NSK must be able to make a prompt and effective response as the
controversial bill makes its way to the Diet. In response to the criticism of Japan's kisha
(press) club system by the European Union and other bodies, NSK must seek public support
for the system. NSK has been urging kisha clubs to revise their rules and regulations in line
with the NSK press club guidelines adopted in January 2002. With respect to preventing socalled
"media scrums," or oppressive pack reporting, prompt on-the-spot responses seem to
have been working so far. Through continued experience in addressing the issue as it arises,
we expect the media to be able to develop a consistent response to the problem. Despite the
fact that security in Iraq remains uncertain, the government has ordered the Self-Defence
Forces to deploy in the war-torn country. This will lead many media organizations to increase
their coverage of the area. Media organizations are likely to spend considerable time and
effort trying to ensure the safety of their reporters in a way that still lets their reporters cover
the news. (2) Circulation and Advertisement: The aggregate circulation of newspapers in
Japan has fallen for the fourth straight year. NSK is therefore aiming to get non-subscribers,
especially among the younger generations, to read newspapers. Various PR activities are
planned for the upcoming "Springtime Newspaper Week," which will be the second such
annual event. A pickup in the economy and improved corporate earnings seem to be bringing

signs of a recovery in newspaper advertising. Expectations of greater advertising are high
with respect to the Athens Olympics, the launch of terrestrial digital TV broadcasting and
expansion in the information/telecom market. In order to meet advertiser demand for more
data on the effectiveness of newspaper advertising, more colour ad copy and digital
transmission of ad materials, newspapers are developing new products, making new business
offers and collaborating with other types of media. By capitalizing on the specific strengths of
their medium, newspapers are striving to re-establish their brand image and to develop new
kinds of advertisements that better serve the needs of corporate sponsors in terms of
accountability and in helping consumers to solve problems. (3) Technology: Toward the end
of last year, Kyodo News began sending out news in the new NewsML format for managing
materials and newspaper composition that was adopted by the International Press
Telecommunications Council (IPTC). As a result, Kyodo's subscriber newspapers are
changing over their respective systems to utilize NewsML. Another attention-getter this year
will be the expansion of computer-to-plate (CTP) systems that generate plates for printing
presses directly from digital newspaper page data saved in computers. National newspapers'
new printing factories due to open this year, including the Kyoto factories of the Asahi and
Yomiuri and the Mainichi's Fukushima factory, have all adopted the CTP system. The
introduction of CTP systems is being widely considered whenever plate-making and other
equipment at existing factories come up for renewal. Using CTP systems can eliminate the
factory-based plate-making process, saving costs and labour. Even the CTP system's
performance in processing images and in sheer speed has been much improved, giving even
more momentum to its already widespread adoption. NSK News Bulletin Online, January
2004; http://www.pressnet.or.jp
Financial / Costs Management
South America
Enormous newsrooms that would by large exceed the Scripps-Howard standard of 1.2
journalists for each 1,000 copies kill the economy of Latin American newspapers. A general
norm of the costs structure of a newspaper in Latin America is 43-43-14 (newsprint,
personnel, administration). The norm of revenue is 45-25-30 (classifieds-display-circulation).
Comparing revenue per head versus costs of a newspaper in the first world and developing
countries, the difference is enormous. To buy a copy of a daily newspaper every day could
represent 10% of the minimal salary in Brazil. http://gacetadeprensa.com; January 15, 2004
� MEDIA LAWS
Internet – Access
Cuba
Cuban Internet access expanding into homes. Cubans will soon be able to surf the Internet
from the comfort of their own homes, Reuters reports. The connection, from Cuban service
provider E.net, will cost 8 cents per minute in a country where the average worker earns less
than $15 a month. Previously, only artists and employees of government offices, hospitals,
universities, research centres, state-run media, writers‚ unions and foreign companies could
legally browse the Web. While E.net‚s offering increases the number of possible connection
sites, critics say the high cost of the connection ensures that few Cubans will benefit from it.
Most Cubans wait in long lines to access the Internet at cyber cafés and the Cuban Postal

Service, where they pay $4.50 for three hours of access to e-mail and select Cuban Web sites.
Communications Minister Ignacio Gonzalez said the regulation was necessary to ensure
widespread access to technology in the developing country. The government cracked down on
unauthorized connections three weeks ago in response to the black market sale of stolen or
borrowed login names and passwords. www.reuters.com; The OnlineJournalism.com
Newsletter for January 21, 2004
Media / Press Laws
Africa
The first in-depth comparative study of media laws in four leading southern Africa countries
has been published… …as a means to help synchronize media legislation and press freedom
initiatives across the region. The new “SADC Media Law: A Handbook for Media
Practitioners” provides a comprehensive overview of media laws and practices in Malawi,
Namibia, South Africa, and Zimbabwe. The study is published at a time when the media in all
four nations are struggling to define their rights to free speech and access to information. The
156-page study, published by the German Foundation Konrad Adenauer (KAS) in
collaboration with the Mandela Institute, is intended as a reference resource for working
journalists, media lawyers, free speech activists, and others working in the media field. The
book includes a detailed analysis of the constitutional and regulatory frameworks governing
media freedom in all three countries. It also contains analysis of market structures, media
practices, and an overview of important legal precedents that shape everything from access to
public information, to defamation, rights to privacy, and freedom of expression. The study
also provides an in-depth look at the regulatory bodies governing the print and electronic
media, and bodies or legal frameworks governing the control of information. Finally, the
study explores the ethical codes used by journalists to moderate their reportage and protect
sources, including detailed interviews with journalists who talk of their everyday experience
of media freedom - or lack of freedom. To download the handbook free of charge, log onto:
http://www.kasmedia.org/PublicationsIndex.asp ; WAN, RAP 21 Newsletter No 2/2004;
www.ijnet.org; January 9, 2004
Iraq
Despite objections from the Coalition Provisional Authority, Iraq’s interim Governing
Council is calling for new regulations that would restrict some media content in post-war
Iraq… Agence France Presse (AFP) reported. The council called a meeting on January 13 to
discuss the role of the National Media Committee, a media watchdog organization that the
council plans to establish. But the event was cancelled at the last minute due to a scheduling
conflict. Ibrahim al-Zubaidi, secretary-general of the council’s panel on media issues, had
intended to distribute a “Code of Conduct for Media Work.” The code calls on journalists to
refrain from “fuelling racial or ethnic tensions and inciting hate, violence and killing.” The
document was open for “voluntary signatures” by all journalists in Iraq, Zubaidi said. “Some
media colleagues have overstepped the danger zone in their coverage at times threatening
Iraq’s national security,” Zubaidi told AFP. “We outlined these high national principles and
told them not to violate them because that would upset us.” Officials from the Coalition
Provisional Authority, however, are raising objections to the proposed regulations. Simon
Haselock, the CPA media commissioner, said that regulation should be left to the media
professionals themselves, not the government. “When it comes to the press we encourage
laissez-faire and a self-regulatory system,” Haselock said. In June, however, the CPA ordered
media to stop using language that would incite “violence and terrorism.” Order 14 states that
media organizations are prohibited from broadcasting or publishing material that incites

violence against any individual or group, encourages civil disorder, rioting or damage to
property, or violence against Coalition forces or CPA personnel. Haselock said the order was
only used once against an Iraqi newspaper. (See the CPA order in the IJNet Media Law
Library.) A provisional government is expected to take power later this June. Haselock added
that the CPA will continue to advise Iraq’s future government on the “best international
practice” when it comes to state-media relations. www.ijnet.org; January 30, 2004
Banned / Suspended Publications
Ukraine
A Ukrainian court has ordered the closure of the Silski Visti daily after accusations of anti-
Semitism by Jewish leaders… …but the opposition Socialist party charged that the move was
aimed at muzzling the press, media reported Thursday. Judges found that two articles
published by the daily, close to the Socialist party, in November 2002 and September 2003,
were "incitements to violence and to inter-ethnic divisions," media said. The judgement was
issued after Ukraine's Jewish Anti-Fascist Committee complained that the articles, entitled
"The Myth of Ukrainian anti-Semitism" and "The Jews in Ukraine today: Reality without
Myth", were anti-Semitic. The head of the Ukrainian Jewish Congress, Vadim Rabinovich, a
wealthy businessman with media interests in Ukraine and Israel, said the court order was "a
one-off decision condemning anti-Semitism and xenophobia," the website Mignews.com.ua,
which Rabinovich owns, reported. The Socialist party in a statement criticised the court order,
saying that the articles had been used as a pretext "to carry out an order by the presidential
administration." The party "condemns incitements to interethnic violence but protests
against attacks on media freedom in Ukraine," the statement said. The mass circulation daily
was temporarily shut down in October 2000 for tax reasons. Ukrainian authorities have
frequently been criticised for attacks on independent media, notably over the still unexplained
killing of an opposition journalist, Georgy Gongadze, in late 2000. President Leonid Kuchma
was accused of involvement by a former bodyguard, a charge he has insistently rejected
although the allegations triggered mass demonstrations and calls for his impeachment. AFP,
January 29, 2004
Market Abuse / Insider Information
Europe
Several European organizations of publishers of daily newspapers and journalists sent a
protest letter to the European Commission against the restrictions to freedom of the press
caused by a European directive to combat the manipulations of financial markets. The
European Federation of Journalists (EFJ) which groups together most of the syndicates of
European journalists, the European Newspaper Publishers Association (ENPA), the European
Publishers Council (EPC) namely signed the letter. The contested directive "created a
dangerous and illegal precedent, which breeds prejudices about the European media and
journalists", wrote the signatories. The directive intends to impose on journalists the
obligations of transparency similar to those of financial analysts as they make
recommendations to buy or sell, even if it is not an “implicit” recommendation.
The directive, published in the official European journal December 24, 2003 is a text of
application of a European directive on the market abuse which was definitively approved by
the Fifteen and the European Parliament January 28, 2003. As a difference from the principal
text, this text of application has not passed the legislative process, and has been revised by the
Commission only. AFP, January 20, 2004

Protection of Sources
United States of America
Investigators to press reporters to name names in CIA agent leak case. FBI agent investigating
the leaking of a CIA agent's identity to the press have asked members of the US
administration to waive confidentiality agreements with reporters, Time magazine said
Saturday. The requests, if signed, would give investigators new ammunition for
questioning reporters who so far have kept mum about the case, Time reported. Former
ambassador Joseph Wilson has alleged that his wife's professional identity was leaked in
retaliation for his high-profile opposition to the war in Iraq. In an article for The New York
Times on July 6 of this year, Wilson charged that President George W. Bush's administration
had "twisted" evidence to exaggerate the case against Iraq. He said the Bush administration
sent him to Niger in early 2002 to look into a charge that Saddam Hussein sought uranium
from Africa, and that he had reported back that it was false. Even after a warning by the US
State Department's intelligence service that the charge was "highly dubious," the accusation
wound up in Bush's "State of the Union" address in January, sourced to the British
government. A week later, conservative syndicated columnist Robert Novak cited "two
senior administration officials" as telling him that the diplomat's wife, Valerie Plame, was a
CIA agent. It is a criminal offence to name a covert CIA agent. The scandal is the biggest to
hit the administration since Bush took office in January 2001. The Justice Department opened
a formal investigation on September 30 into "possible unauthorized disclosures" of the agent's
identity by the Bush administration. Attorney General John Ashcroft withdrew from the
politically sensitive probe earlier this week, prompting authorities to name a special counsel
to head the investigation in his place. The requests could lead to the arrest of reporters who
refuse to reveal the identities of their confidential sources. "From the prosecutors' point of
view, it is likely a precursor to subpoenaing journalists to testify before a grand jury, and then
asking a judge to hold them in contempt if they refuse to do so," Lucy Dalglish, executive
director of the Reporters' Committee for Freedom of the Press, told Time. AFP, January 3
Protection & Safety of Journalists
United States of America
The Inter-American Press Association has criticized the United States for its treatment of
some foreign journalists since the September 11 terror strikes on US targets… …saying
several have been unjustly handcuffed, detained or deported. "In the United States, there has
been an increase in recent months in the number of foreign journalists arrested and refused
entry to the country for not having a valid visa. There have been cases of journalists held in
custody for more than a day, handcuffed, interrogated and prevented from making a
telephone call and, in some cases, then being deported," the Miami-based IAPA said in a
statement Wednesday. It said the freedom of the press concerns would be taken up at a
regional meeting in March in Mexico. "The IAPA expressed special concern at the situation
in Canada. There, federal police on January 21 raided the home and office of Juliet O’Neill, a
reporter for the Ottawa Citizen, seeking the identity of an anonymous U.S. official source
believed to have provided her with information regarded as 'sensitive' by the government," the
statement added. "According to the police, O’Neill might have broken the Information
Security Law, enacted following the September 11, 2001 terrorist attacks in the United
States." O’Neill could be charged and face up to 14 years imprisonment for citing
an anonymous intelligence source in an article on a Syrian-born Canadian citizen suspected of
having links to the international terrorist organization Al-Qaeda. AFP, January 29, 2004

Legal Harassment
Zimbabwe
Court bars police from interfering with the Daily News. Zimbabwe's largest private
newspaper was granted a court order Friday barring police from interfering with publishing
operations, the second to be issued in favour of the embattled paper in less than a month.
Gugulethu Moyo, legal adviser for the Daily News, said its lawyers filed an urgent application
with the Harare High Court for an order to stop police interfering with publishing operations
and to end their occupation of the paper's premises in the capital. Said Moyo: "The order was
issued today". Sipepa Nkomo, chief executive officer of the paper, told AFP the order means
the paper will be published "as of now". The Daily News is the country's most popular daily,
and had a readership of at least 900,000. It is the only alternative to the two state-run dailies,
The Herald and The Chronicle. "What was preventing us to publish was the police. We had
the right to publish from the judgment issued by the Administrative Court in Bulawayo on
19 December. "We hope they (the police) will comply," he said. Moyo said the continued
occupation by police of its premises in Harare was unlawful. "The state attorney indicated that
the position of the police was indefensible," she said. "We should be able to resume
operations, because their (the police's) action is unlawful," she told AFP. A Zimbabwe court
in the south-western city of Bulawayo ruled last month that the Daily News could resume
publishing but Jonathan Moyo, Zimbabwe's information minister, immediately opposed the
judgment, saying it had "no practical force." The Daily News was shut down by armed police
in September after the Supreme Court ruled it was operating illegally by not being registered
with the state-appointed media commission. The saga has thrown the international spotlight
on press freedom in Zimbabwe. AFP, January 9, 2004
� COPYRIGHT
Databases
United States of America
The U.S. House Judiciary Committee voted to advance a bill that would extend copyright
protection to databases, reports CNET News.com. Over the objections of the U.S. Chamber of
Commerce and tech companies, like Amazon.com, AT&T and Google, the panel voted 16-7
in favour of the Database and Collections of Information Misappropriation Act of 2003. A
letter released last week by the bill's opponents said: "Proponents of the bill have yet to offer a
convincing case that existing federal and state laws, including federal copyright law,
federal anti-hacking prohibitions, and a variety of state contract and tort laws, are insufficient
to provide database producers with adequate protection." Critics also say that the measure
goes against a U.S. Supreme Court ruling that said facts can't be copyrighted. Fee-based
database providers like Reed Elsevier, the owner of LexisNexis, and Thompson have been
strong proponents of the bill. The proposal will now likely move to the full House for a vote.
The OnlineJournalism.com Newsletter for January 21, 2004.

� OWNERSHIP
Takeover Bids
International
The US subsidiary of Conrad Black's media empire has adopted a "poison pill" shareholder
rights plan in an effort to block the sale of Black's newspaper holdings. In a statement issued
late Friday, US-based Hollinger International adopted the shareholder strategy designed to
increase takeover costs by issuing new preferred shares with heavy penalties for takeovers.
The move marked a further escalation of the battle for control of the media empire that
includes Britain's Daily Telegraph, the Jerusalem Post and Chicago Sun-Times. The move
was aimed at blocking an attempt by Black, who has been under investigation for allegedly
improper payments, to sell off the empire to Press Holdings International, a British group
controlled by the secretive and wealthy Barclay twins. The move came shortly after Black's
Canadian-based holding company, Hollinger Inc., sought to tighten control over US-based
Hollinger International, which is the operational arm of the company and which has ousted
Black as chairman. AFP, January 26, 2004
United Kingdom
The Barclay brothers' Press Holdings International launched its tender offer for shares in
Hollinger Inc. … …a deal that would give it control of the Daily Telegraph. The Barclay
twins are pushing ahead with the bid despite innumerable obstacles, including a legal action
filed on Monday by the newspaper business Hollinger International to prevent the deal. That
legal action also sought to introduce a poison pill to deter the Barclays. The C$605m (£254m)
offer for Hollinger Inc would give the Barclays a 30% equity stake in Hollinger International
but 73% of the voting rights. Hollinger Inc is based in Canada, where the law gives
shareholders 35 days to accept the offer. The Mail on Sunday meanwhile announced it would
no longer carry copies of the Business, owned by the Barclay twins, who pipped the Mail to
be first in the battle for the Daily Telegraph group. Daily Mail & General Trust said yesterday
it had ended the arrangement to include the Business as an insert in its Sunday newspaper in
certain markets, but Peter Williams, the Daily Mail's finance director, said the move was
merely coincidental. The Hollinger Inc deal is a key part in the bruising war being waged by
the press tycoon Conrad Black who controls Hollinger Inc, and the directors of Hollinger
International. The Hollinger International board has retained the investment bank Lazard to
conduct its own parallel sale of the newspaper assets, which also include the Chicago Sun-
Times and Jerusalem Post. A statement from Hollinger International reiterated the belief that
the deal was "structured in a way that does not benefit shareholders other than Lord Black"
and that the board should be free to consider all options. The two sides have been battling
since the initial findings of an internal inquiry at Hollinger International alleged that at least
$32m had been paid to a handful of executives and entities including Lord Black and
Hollinger Inc without board approval. When the findings were made public in November
Lord Black resigned as chief executive of Hollinger International and has since also been
ousted as chairman. Ten days ago Hollinger International named Lord Black in a lawsuit
demanding repayment of a much larger sum, $200m, in allegedly unapproved fees. The suit
accused Lord Black of looting the company to support his own expensive lifestyle. The latest
legal filing from Hollinger International filed earlier this week sought an injunction against
Lord Black from selling his controlling share to the Barclay brothers, arguing that he was
breaching his fiduciary duties as a director of the newspaper business where he is still on the

oard. The poison pill detailed in the filing would allow minority shareholders in Hollinger
International to participate in a rights issue in the event of a change of control, diluting the
Hollinger Inc stake to a worthless level. http://media.guardian.co.uk; January 28, 2004
United Kingdom
Daily Mail, owner Associated Newspapers is preparing a 727m-euro bid for the "Daily
Telegraph" and its Sunday sister title. The group is planning to table an offer within a
fortnight, according to sources close to the company. It aims to derail the agreed deal,
clinched dramatically last weekend, between Conrad Black and the Barclay brothers, owner
of the "Scotsman" and the "Business". Express Newspapers owner Richard Desmond
has told his executives that he will also bid. Meanwhile, Lazards, the investment bank
organising the sale of the assets, has legal advice that it can challenge the 'super shares', which
have given the Barclays control. Lazards believes it can raise over 1.5bn euros by breaking up
the group, which also includes the Chicago Sun-Times and "Jerusalem Post".
http://observer.guardian.co.uk; The EJC Media News Digest of 26 January 2004
Mergers & Acquisitions
United States of America
Two Spanish newspaper publishers merge. The publishers of the Los Angeles Hispanic daily
newspaper La Opinion and CPK Media, which publishes El Diario-La Prensa in New York,
are combining to form a national Spanish-language publishing firm, the companies said
January 15. The two privately held companies will form Impremedia LLC, which will
continue to publish the newspapers separately. Financial terms of the deal were not disclosed.
The combined circulation of the two newspapers is 725,300, the companies said. "Our vision
is to create a national group of Latino newspapers that cover issues impacting our community
nationally, regionally and locally on a hard-hitting and timely basis," Jose Ignacio Lozano,
who will serve as vice chairman of the new company, said in a statement. The Lozano family
owns La Opinion. El Diario-La Prensa was bought in July 2003 by a group led by Los
Angeles-based Clarity Partners for $19.9 million. The new company will allow the papers to
better approach national advertisers and give them a wider platform to reach a Hispanic
population that is growing both in numbers and buying power. La Opinion said it has
repurchased the equity interest owned by the Tribune Co., ending its partnership with the
company that publishes its own Spanish-language papers in New York and Chicago, as well
as the Chicago Tribune and the Los Angeles Times. The company said Monica Lozano will
succeed her brother Jose as publisher and chief executive officer of La Opinion. The new
company has enough capital to begin buying existing weekly and daily newspapers across the
country, Jose Ignacio Lozano said. Papers the company will buy or create will reflect the local
communities and will not necessarily bear the La Opinion or El Diario-La Prensa brands. "We
are well capitalized to follow our dream and vision," Lozano said at a news conference.
Lozano said that in time, as investors seek profits and the company grows, the company could
consider going public to raise capital. The number of Hispanics in this country has grown
nearly 60 percent in the past decade to 35.3 million, according to the 2000 census. Over the
next 20 years, that figure is expected to grow to 55 million. Their purchasing power could
grow at three times the rate of the rest of the country, analysts say. "I suspect these folks feel
they don't have a choice but to band together to keep the Spanish language market as much to
themselves as they can," newspaper analyst John Morton of Morton Research Inc. said.
"They've got companies like Tribune chasing them." Univision Communications Inc. last year
acquired Hispanic Broadcasting Corp., a deal that gave it the top Spanish-language broadcast
network, cable channel, record label, Internet site and radio network as well as the largest

group of television and radio stations. General Electric's NBC network acquired Univision's
chief rival, Telemundo, in 2001. Lozano said that while Impremedia may look to form
alliances and share resources with Spanish language broadcasters, it has no plans to seek
mergers with them. "We're newspaper people," he said. www.newsday.com; January 15, 2004
Foreign Ownership / Investment
Slovenia
The Styria Medien AG Company, which published two Austrian dailies, "Kleine Zeitung" and
"Presse", confirmed it is to hold a stake in Slovenian daily "Dnevnik". At first, the company
plans to purchase 19.5 per cent share of the daily from Slovenia's KD Holding, while in future
this may rise to 25 per cent. Styria Medien AG has already filed the obligatory request for
approval for future acquisitions with Slovenia's Ministry of Culture. Klaus Schweighofer, one
of the publisher's managers, said the company is focusing on markets in Slovenia and Croatia,
while other former Yugoslavian markets were not yet being considered. KD Holding also has
a stake in Bosnia's "Oslobodenje". www.apa.at; The EJC Media News Digest of 23 January
2004
� TAXES
VAT
Poland
The Polish Parliament is debating a new value added tax law that would introduce a 22
percent VAT rate for printing services and increase from 7 percent to 22 percent the VAT rate
for newspapers and magazines which are “substantially devoted to advertising matter.” The
Polish Chamber of Press Publishers has submitted a counter proposal in support of
maintaining current rates and it held a nationwide protest on 21 January. Polish newspapers
ran advertisements about the consequences of increasing the VAT rates. The Newspaper
Associations Online Forum, a bulletin for the exchange of information and ideas among
Member Associations of the World Association of Newspapers, No. 18, January 28, 2004
� COMPETITION
State Support (Other Than Subsidies)
France
Jacques Chirac defends the plans for modernisation of the press. Jean-Pierre Raffarin has
intervened, with the same determination, on the same issue. The prime minister announced
the creation of a “national commission to consider the mid-term future and to propose an
ambitious programme of initiative for the press.” http://www.lefigaro.fr; January 13, 2004
Monopoly
United States of America
Gannett Co. will not renew its newspaper joint operating agreement (JOA) in Cincinnati…
…when that contract expires on Dec. 31, 2007. Gannett owns The Enquirer, which is

published mornings and Sunday. E.W. Scripps (SSP) owns the afternoon Cincinnati Post and
The Kentucky Post. Three years' notice of cancellation is required under terms of the JOA
contract signed Sept. 23, 1977. Joint operating agreements are an exception to federal antitrust
laws. They permit a failing newspaper to combine business operations with a profitable
newspaper in order to maintain two editorial voices in a city. The Cincinnati JOA was created
after Scripps declared that the Post newspapers were in danger of financial failure. Paid
circulation of The Cincinnati Post and The Kentucky Post, about 188,000 when the JOA was
established, has fallen to 42,219 daily and 57,543 Saturday. "Deciding not to renew the
Cincinnati JOA was a sad but necessary step for Gannett to take," said Gary L. Watson,
president of Gannett's Newspaper Division. "Readership habits in Cincinnati and around the
country continue to shift away from afternoon newspapers. As profitability declines and
expenses rise, tough decisions needed to be made." Gannett is the nation's largest newspaper
publisher. It is the parent of USA TODAY and USATODAY.com. Under the Cincinnati JOA,
news/editorial operations of The Enquirer and The Post newspapers are separate. The
Enquirer-managed JOA handles all other operations of the newspapers, including advertising,
printing and circulation in exchange for a portion of the JOA's operating income.
The current business arrangement is expected to continue until the Dec. 31, 2007, termination
date of the JOA, Gannett said. There are no termination fees payable under the contract.
Scripps says it intends to continue publishing the Post newspapers Monday through Saturday
afternoons "for the duration of the joint operating agreement while actively exploring all
options for the future of The Post." "There's a lot of good work to be done in the next four
years," said Mike Philipps, editor of The Post. "The Cincinnati Post and The Kentucky Post
are going to continue to play the same important role they've played for the last 120 years..."
Scripps said it will take a $1.8 million pre-tax charge in the fourth quarter 2003 to reflect
estimated severance costs for Post editorial employees as stipulated by terms of a collective
bargaining agreement. Today's notification, however, will not result in the immediate loss of
any editorial positions at The Post, Scripps said. The Post has 78 full-time and four part-time
editorial employees, including reporters, editors, photographers and office staff. Including the
charge for severance costs, the Cincinnati JOA contributed about $12 million to Scripps' total
segment profits in 2003, the company said. Gannett publishes 100 daily newspapers in the
USA, including USA TODAY, the nation's largest-selling daily. The company also owns
almost 500 non-daily publications in the USA and USA WEEKEND, a weekly newspaper
magazine. Scripps operates 21 daily newspapers, 10 broadcast TV stations, four cable and
satellite television programming services and a television retailing network. Its brands include
Home & Garden Television, Food Network, DIY — Do It Yourself Network and Fine Living.
www.usatoday.com; January 16, 2004
Fair Competition
Belgium
Publishers of the French-speaking press in Belgium have signed an agreement with the
regional government and local television companies that will put an end to a conflict over
compensation that has raged for years. Following the introduction of commercial television
advertising in 1987, broadcasters were required by law to pay compensation to newspapers
for the advertising revenue losses that resulted. But the broadcasters challenged the law in
court. The agreement reached on 16 January puts an end to the litigation. The agreement,
which is to be submitted to the region’s Parliament, calls for 620,000 euros to be distributed
to newspapers to support citizenship initiatives, particularly Newspapers in Education
projects. The amount paid by broadcasters will be gradually reduced to zero by 2007. The
Newspaper Associations Online Forum, a bulletin for the exchange of information and ideas

among Member Associations of the World Association of Newspapers, No 18, January 28,
2004
Germany
German newspaper publishers have protested against unfair competition from
the German postal service Deutsche Post AG… …that is delivering advertising
inserts much cheaper than newspapers. Deutsche Post, whose main shareholder is the German
government, is bundling the inserts in a plastic sack and delivering them to households every
Saturday. The German newspaper publishers association BDZV, as well as the organization
of free-sheet publishers in Germany (BVDA), contend that the postal service is “price
dumping” by paying for the new service with revenues from the still highly profitable mail
delivery. Deutsche Post holds a monopoly on daily mail deliveries and its prices are set by the
government. WAN Newspaper Association Newsletter, December 23, 2003
� LABOUR & EMPLOYMENT
Job Markets
United Kingdom
The growth of digital media offers good job prospects for online journalists with solid
communication skills and work experience rather than contacts and qualification… …reports
dotJournalism. Victoria Lubbock, UK-based Recruit Media's company chair told
dotJournalism what essential qualities a reporter should possess, emphasizing the need for
technical and editorial skills. Online media have a variety of openings for journalists, but most
print writers are still averse to digital journalism, she said. "The snobbery about online
journalism is about ego -- about not feeling and seeing their byline in the same way because
it's a more transient medium," she added. She advised younger reporters to collect adequate
information about the type of job they wanted before applying to it, warning that competition
is high in the field. www.journalism.co.uk; The OnlineJournalism.com Newsletter for January
22, 2004
Wages / Salaries / Benefits / Earnings
Germany
Until this year, a job at the FAZ came with a company car. Entry-level reporters got a VW
Golf, senior editors a top-of-the-line BMW. Now, though, the cars are limited to senior
editors, and they must pay a monthly fee for them. Like most German newspapers, the FAZ
suffered during the recent recession. Its lush perquisites, and nearly a quarter of its staff, have
vanished as advertising revenue shrank. "It was a very radical cutback," said Berthold Kohler,
one of five publishers who run the Frankfurter Allgemeine in a sort of council. "We've never
had anything like it in the history of the paper." Even now, as Germany's economy rumbles
back to life, the nation's newspaper industry is in post-traumatic shock. (Please read also
MEDIA MARKET DATA – Media Markets & Newspapers – Germany). www.iht.com;
January 19, 2004

Employee Stock Ownership
United States of America
No shares for CNBC employees. CNBC, the US business-news cable channel owned by
General Electric Company, has instituted a new investment policy for its staff in an effort to
avoid potential conflicts of interest among its reporters, producers and executives. Under the
new policy, senior management, newsroom staff, on-air talent and their spouses and
dependants will be prohibited from owning individual stocks and bonds and have until
January 2005 to liquidate their holdings. Other CNBC employees will be subject to a notrading
policy, meaning their assets are frozen during their employment at the channel.
CNBC's previous policy was that employees could hold individual stocks and bonds, but with
a minimum four-month holding period. http://online.wsj.com; The EJC Media News Digest of
14 January 2004
Labour Relations / Trade Unions
France
Staff at Reuters' Paris bureau to hold one-day strike. The Paris bureau of the news agency
Reuters was to go on strike for one day Thursday to protest the firing of an employee, amid
what workers said were deteriorating working conditions at the company. Employees on
Wednesday overwhelmingly voted for the strike, to begin at 7:00 am (0600 GMT) on
Thursday and to last 24 hours, journalists at Reuters said. A general meeting of all of the
agency's staff in the country – about 400 journalists, commercial and technical employees -was
to take place on Thursday on whether to extend the strike to everyone working for
Reuters in France. The Wednesday assembly also voted for a motion warning management
over a "disturbing absence of editorial strategy (and) the absurd economic choices made in the
face of more and more aggressive competition." The journalists also bemoaned a "worsening
of working conditions" which meant they could not turn out quality work, saying they
"refused to stand by passively" as the agency gradually "deteriorated." The strike was called
to protest the firing of a 54-year-old employee after 34 years with Reuters. Reuters, the media
and financial information giant based in London, is in financial difficulties and aims to cut
costs by about 440 million pounds (810 million dollars, 640 million euros) by next year.
Some 3,000 layoffs are expected as a result of the cuts. AFP, January 14, 2004
Germany
After failed wage negotiations for some 14,000 newspaper journalists, the German dailies
may be facing their first journalist strike in the past 15 years. The trade union "ver.di" and the
German Association of Journalists (DJV) declared on Monday the negotiations as failed and
decided to start preparations for the strike. The employers criticised the move, appealing to
the trade unions to return to the table. According to them, the journalists' representatives
should show more understanding for the difficult times the publishers face at the moment.
During negotiations, the employers demanded a two-year moratorium on wages, shorter
holidays, longer working hours and a 25-per cent cut in holiday pay. "ver.di", on the other
hand, wanted a wage rise, in line with the agreements reached with printers.
www.diepresse.com; The EJC Media News Digest of 23 January 2004

Germany
For the past three months, the German newspaper association BDZV has been negotiating
wages with the two leading journalists' unions, without results. Because of the difficult
economic situation faced by newspapers in Germany, publishers want to reduce the vacation
time for journalists from 35 days per year to 30 days and to cut vacation pay -- the equivalent
of one month’s extra pay annually -- by 25 percent. While journalists have staged small-scale
strikes to back their unions, BDZV expects strikes on a bigger scale starting at the end of this
week. The Newspaper Associations Online Forum, a bulletin for the exchange of information
and ideas among Member Associations of the World Association of Newspapers, No 18,
January 28, 2004
Italy
Italy's leading newspaper Corriere della Sera will not be published January 21 because of a
strike by print employees that is also expected to affect the sports daily Gazetta dello Sport,
the two dailies announced. The strike was called in response to a wave of lay-offs affecting
about one third of print employees in Milan and Rome following the purchase of a new
printing machine, a union source said. AFP, January 20, 2004
Turkey
Employees of the Uzan family press group started a hunger strike to denounce the authorities’
decision to freeze its bank accounts. According to Mesut Bilaloglu, human resources director,
1,700 employees of the group, among them some 600 journalists, "haven’t received until
today their salary of January and I have no more excuses to present to them". All the
employees were receiving their salaries late over more than last six months, but "this time we
cannot pay them all" even if the group can dispose with sufficient cash on its bank accounts,
he explained. The Turkish agency for banking regulation and supervision (BDDK) has
recently frozen all the bank accounts of the group, including the daily Star, which was
published Tuesday on four pages only, "short of money to buy newsprint ", and four TV
channels. Hakan Uzan, owner of the Star, and the patriarch of Kemal Uzan family have been
on the run since summer, probably abroad. The authorities took hold of the Imar bank that
belonged to them due to serious irregularities. The authorities have estimated the deficit at 6
billion dollars. Accused of corruption for a long time, in Turkey as well as abroad, the Uzans
maintain that the offensive of government against them has originated in the rise of the party
run by Cem Uzan, grandson of Kemal Uzan, in opinion polls. His ultra-nationalist party
obtained 7,7% of votes in the last general elections in 2002. AFP, January 20, 2004
United Kingdom
Telegraph workers may strike amid Hollinger strife. Reporters at the Telegraph newspaper
will decide whether to go on strike next week, with their union furious about years of costcutting
while owner Conrad Black was receiving allegedly unauthorised payments. Black
agreed to sell his controlling stake in the Telegraph's parent company, Hollinger
International, to millionaire twin brothers David and Frederick Barclay on Sunday. The
Telegraph is seen as the company's most coveted asset, and a strike at the paper could affect
the complicated dealings between Black, the Barclays and the Hollinger International board.
"There is a general sense that over the last three to four years management hasn't been totally
straight about the financial state of the company," said Charlie Methven, a Telegraph editor
who is the paper's representative with the National Union of Journalists. Reporters at the
Telegraph, Britain's top-selling broadsheet paper, will vote on Monday on whether they

support a strike or industrial action short of a strike, such as work disruptions. They are
seeking an eight percent pay raise, with the paper's management offering a three percent
increase. At issue in the Hollinger scandal are some $90 million in payments from Hollinger
International to Black, his business partners and the companies they control. The mogul
stepped down as chief executive in November after the board discovered that $32 million in
payments to him and other executives were not authorised -- payments Black now says were
approved, based on new evidence he says he has found but has not released. The uncertainty
surrounding the Barclays' bid to control the paper, along with other Hollinger assets such as
the Chicago Sun-Times, has complicated the decision for Telegraph staff. "It's very difficult
to factor in something when nobody knows what will happen," Methven said. "(The
Telegraph) would be be better off with anyone who isn't under investigation for alleged bad
behaviour ... There is no great dismay over the Barclays." Telegraph editorial director Kim
Fletcher said: "If the union sees industrial action as a way of venting their anger, they should
ask if it's the right moment given the company is moving toward new management." Black
and his wife Barbara Amiel Black were the subject of less-than-friendly coverage, meanwhile,
in the current issue of The Spectator, a right-leaning political magazine that is part of Black's
erstwhile media empire. The cover story in the January 24 edition details the fall of the Blacks
from being "London's most glamorous power couple" to their current predicament as
defendants in a lawsuit filed by their own company and forced to sell out to the Barclay
brothers under a cloud of controversy. "Conrad and Barbara Black were unwise enough to try
to conquer America as well. This soaring transatlantic ambition caused their downfall," The
Spectator's Peter Oborne wrote. "The Blacks had entered a world where private jets were
commonplace, so they arranged to have two, one purchased and one leased." The
arrangements were made through Hollinger, which footed the bill for the planes. The
company also paid for servants at the Blacks' homes. Reuters News Service;
www.forbes.com; January 22, 2004
� ETHICS
Codes of Ethics & Press Councils
United Kingdom
Newspapers should not be fined for breaching the industry's self-regulatory code… …the UK
Press Complaints Commission said as a 39 per cent increase in complaints for last year was
reported. The press watchdog, which saw complaints rise from 2,630 to 3,649 in 2003,
rejected calls from the Commons culture select committee to publish league tables of
newspaper compliance with its code or to award compensation in serious cases. In its
response to proposals by the culture select committee, the commission also rejected
recommendations to prevent editors acting as commission members if their newspapers
persistently breached the code. http://news.ft.com; The EJC Media News Digest of 14 January
2004