Pelle Tornberg: Free vs Paid Newspapers
Nov 17, 2008
Pelle Tornberg, former CEO of the Sweden-based free newspaper giant Metro International, argues that free and paid newspapers both have a role moving forward. Paid newspapers, however, need to radically change their business model.
Metro has lately come under much financial pressure and the whole advertising-based model of free newspapers has been put into question with the advertising downturn.
Free newpapers, Pelle argues in this video, will survive the downturn and eventually thrive again. The market leaders will do best since launching a new publication has high barriers to entry in terms of capital.
Paid newspapers, for Pelle, must change their model radically to include exclusive information, increase the cover price and reduce circulation.
“Free TV and free newspapers are used Monday to Friday while the pay TV, paid newspapers and paid magazine become the weekend reading. When I say paid, they might be sponsored, your company or an advertiser paying for it.”