The hard choices facing newspaper owners are illustrated by Alexander Lebedev's decision to forgo £14m in circulation revenue in the hope of recouping the money from increased advertising ratesaccording to Salamander Davoudi and Ben Fenton writing in the FT this morning.
The paper currently sells for 50p and shifts around 250,000 copies.Its management believe that free distribution will increase that figure to around 600,000.
The question of course for the paper now is whether the revenue it will lose from its cover price will be adequately replaced by the increased advertising from its greater catchment area
As Ian Burrel writes in the Independent this morning
The Standard's move to a free model will be watched with interest from across the regional and national press, where circulations are in widespread decline but advertising revenues are also in recession. Sources at the Standard say advertising income has improved in recent weeks to levels above those of last year.
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