Romanian Daily Newspapers Market, 2006 versus 2005: a fall of 7 %

The daily newspaper market in 2006 changed compared to 2005. The launch of a free of charge daily newspaper, and the dramatic changes to the editorial team and owner gave the daily printed press a brand new form. Drawing an inference and calculating, this means a total circulation lower by 7 percentages. This fall foresees a rearrangement of the reference segment.

The seven percentages refer to the average number of the sold circulations per day for the nationally distributed daily newspapers. The information recently disclosed by the Romanian Circulation Audit Office (BRAT) shows that the number of the sold copies fell by 57,901 copies, from an average of 820,190 in 2005 to 762,289 in 2006.

The Quality Press Fallings Foreshadow A Rearrangement

A large amount of those seven percentages comes from quality press segment, also called serious or reference press. It’s a natural trend having in view that the major investments aimed at the mass publications in the recent years. The second and third places in the generalist daily newspapers top – Jurnalul naţional and Evenimentul Zilei – recorded decreases of 31% and 8%, respectively, with relatively steady teams and the same owner (Voiculescu and Ringier). The higher percentage recorded by Jurnalul naţional is also a result of the powerful promoting campaigns (Logan prizes) that at a certain point ceased to be offered. As absolute values, the newspapers fell from 120,000 copies to 85,000 for Jurnalul, and from 75,000 copies to 68,000 for Evenimentul.

As for the other titles, România liberă recorded a fall of 8% with no dramatic changes. Adevărul suffered two drastic changes both to the editorial team, and owner of the publication leading to a fall of the circulation of 60%, although in 2007, the publication has started to record a revival, and just a few days ago it was radically redesigned. The new-born Gândul, in 2005, fell in 2006 by 27% compared to the average recorded within the first 10 months from its launching, to approximate 31,000 copies. Ziua is even lower by 36%, falling to almost 21,000 copies.

Fallings Can Also Mean Consolidation

Both the above-mentioned numbers, and the changes to ownership, formula and team many of the above-mentioned titles passed through show that the quality segment of the daily newspapers tends toward a rearrangement, during which it is going to better adjust to the public’s expectations. The publications with financial power, belonging to powerful groups, have good chances to grow and survive, and in this respect, Adevărul’s transfer of ownership to Dinu Patriciu and Gândul’s takeover by the printed press owned by Adrian Sârbu should be taken into account. Cotidianul, a newspaper that was not audited by BRAT in 2005 and 2006 can compel recognition on its turn due to the fact that it is owned by the group under Sorin Ovidiu Vîntu’s control. In other words, the grounds for the quality segment internal fights have just been given the occasion, while the interesting news are about to be disclosed.

Sports, Tabloids and Business Publications Are On The Increase

The titles recording growth have steady editorial teams and editors. Pro Sport and Gazeta Sporturilor have each won 14%, meaning that in 2006 they recorded an average of 76,000 copies, and 73,000 copies, respectively. Libertatea, the leader of the market by far grew from 164,000 by 5%. Averea recorded a spectacular growth of 1738% up to 22,000 copies. In 2007, Averea turned into Click!, and off-record numbers suggest its ascending trend in the future. The future will shad a light on what’s going to happen to this title with over 50,000 sold copies.

The interval taken into consideration means also consolidation of Ziarul financiar, a super-quality economic daily newspaper. Adrian Sârbu’s title has grown by 10% (16,500 copies in 2006), and its poor circulation means at the same time a 2.5 RON price for the cover, twice and a half higher compared to the other newspapers.

In management circles pretty good income from advertising is a discussion topic in relation with the economic daily newspaper owned by Adrian Sârbu, which eventually led to the decision made by Realitatea-Caţavencu Group to bring a competitive title called Business Standard to be launched these weeks.

Non-Audited Titles, Free Newspapers

By half of 2006, Ringier, the most powerful printed press group in Romania, launched Compact, our first free newspaper. Its success was fast expressed in 150,000 distributed copies through its own distribution network in the subway stations and other crowded place in Bucharest. Recently, the editor has announced a supplementation by few percentage of the printed circulation. Even the numbers recorded by Compact cannot be compared with those of other titles mentioned above given the fact that the readers don’t have to pay for a copy, it seems to announce the coming into being of a new daily printed press market. Curentul, an insignificant title, also started to be distributed free of charge. Cotidianul, the above-mentioned title, was transferred to Sorin Ovidiu Vântu and has been re-launched just a few days ago, with Mihnea Măruţă in the position of editor in chief. Gardianul, 7 plus or Sport Total provided no BRAT updated information at the moment at processing the information presented.

Group Strategies Getting A Good Hand

During 2005-2007 characterized by concentration of the media ownership in the hands of few critical players controlling at this moment the most part of the market, not only the daily newspaper segment, but also the audio-visual one. The powerful groups in Romania in 2007 is represented by Ringier, Swiss publisher holding over 50% of the daily newspaper market, without infringing the competitiveness regulations, with a total of 556 thousand distributed copies including Compact. The reason: the market shares owned on specific segments (daily newspapers the buyer is paying for, sports newspaper and so on) are under the legal threshold, and Ringier’s power, in terms of printed press, is by cumulating the circulations on this market. The second publisher as importance in terms of daily printed press, the trust controlled by Voiculescus, sold an average of approximate 168,000 copies with Jurnalul and Gazeta Sporturilor. They are followed by Publimedia, the print company owned by Adrian Sârbu, with approximate 48,000 copies. Adevărul Holding, owned by Dinu Particiu, has started the offensive in 2006 and was amounting less than 47,000 sold copies. The last powerful publish in the daily newspaper field, Realitatea-Caţavencu Group, controlled by Sorin Ovidiu Vântu, provides no information for 2006, but the investment, the managers and the classifications are rather interesting. Cotidianul and the announced Business Standard are in question.

From the economic point of view, this kind of concentration leads to clearing up the market, first of all because each publisher has to harmonize its strategies for the higher number of the title portfolio. A more powerful media group structure also presents a series of other advantages as distribution of some related expenses, meaning administrative common structures related to distribution, marketing, advertising and so on. Cross-promotion is one of the weapons the new born groups make use of, meaning the advertising in the other titles owned by the same group. In spite of such business related approaches, there are reasons for worries formulated by civil society in relation with ownership concentration. They refer to opinion pluralism and freedom of expression and not to business related issues. Agglutination of the Romanian medial groups, in spite of all the criticism, is still the phenomenon ordering the market logics for the years to come. The press managers and the editors in chief though would have to take advantage of the publishers’ power and respect journalistic ethics principles.

Market Shares of National Newspapers

Market Shares of the Owners

BRAT (Romanian ABC) data for average sold circulation in 2006

COMMENT: The Trends and the Ideal Market (by Iulian Comanescu)

On the mass-media blogs a popular exercise was involving different specialists that were supposed to design an ideal daily newspapers market in Romania for a future expressed in years. Although the exercise is also of an entertaining nature, it comes with an interesting pattern. Most of the voices agreed that in the future we can talk about the launching of a mighty tabloid in line with Libertatea, and the most current promising title is Click!. The free daily newspapers, opened by Compact, shall consist of two-three significant players, representing different nuances, from relaxed-popular to consumption-useful. Evenimentul zilei and Jurnalul naţional shall carry on their successful carrier and, in spite of the expressed position as reference quality publications shall become the so-called mid-markets, newspapers combining critical information with slightly entertaining kind of information. The quality segment is lacking of a public interest daily newspaper with 40-50,000 copies for a price lower than 2 RON and of a super quality publication for 2.5-3 RON with a circulation of 20-25,000 copies. The products to come to these positions are going to be really different from the newspapers called now in Romania quality papers, in terms of format, approach of the issues, layout. Of course, the above-mentioned description assumes a level of subjectivism, but the media markets shall reorganize according to a pattern as logic as the one described above. Some titles shall disappear due to the confusion on some segments.

The transition to small sizes shall be a success as in the case of the titles in Great Britain. Elite titles as The Times or The Guardian launched compact editions during 2005 in parallel with the big formats. The success was so fast that the editors were given the occasion to give up the classic format after few months.

The Internet editions shall also affect the printed press market structure in a way one can only imagine today. The publishers investing on-line and approving courageous deviations from the printed edition structures shall benefit of important scores.

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