154th Media SPH Increase Price to Offset Ad Revenue Drop

[Pinkieslut]

Will higher cover prices finally alleviate SPH’s ad woes?

Analysts fear a knee-jerk reaction from consumers.

After applying measures to cut its costs to the bones, rising its cover prices might be the final ace in Singapore Press Holdings’ sleeve to numb the effects of its cascading advertising revenue.

But the first few months might hurt, according to analysts from UOB Kay Hian, saying while an increase of 20% would imply an additional $32m in revenue, an initial knee-jerk cutback in consumption would dampen the revenue impact.

“Assuming a 10% fall in circulation, the net impact to revenue would be an increase of S$16m. Net profit would increase by S$13m, or 4% of our FY17 S$312m forecast. As people get used to higher cover prices over time, circulation volume should recover but operating costs are always rising,” UOB Kay Hian said.

Despite this, UOB Kay Hian said higher cover charges are the right move, and are more likely to offset rising costs.

“We see the cover price increase as a measure to mitigate rising operating costs as SPH has already cut its media-related costs to the bones. Further cuts will likely affect the quality of its newspapers,” UOB Kay Hian said.


- See more at: http://sbr.com.sg/media-marketing/n...-alleviate-sph’s-ad-woes#sthash.V9SzpYEb.dpuf

 

[scroobal]

It will be interesting how the PAP handles losing the penetration of their favourite mouthpiece. SPH was wonderful as it did not cost PAP a penny. Now to maintain similar levels of penetration they must either use a government agency to take the slack or pay thru their party.

 

[3_M]

The relevance of any media to the advertisers is dependent on it outreach and number of readership. Increasing price of newspaper will only decrease it viewership and further reduce it appeal to the advertisers. And this could result in a vicious cycle.

I don't think it going to help sph in the long run.

 

[Narong Wongwan]

Gong cheebyes will still buy to read.
It's not a newpaper but a newsletter
The only things that's irrefutably true that's printed on it is the date.
Now they force the schools to buy it for their students....
All the govt dept and glcs can also be force to subscribe for the staff to pick up the slack. There's many ways to boost sales.

 

[Reddog]

The last time I bought ST was a Saturday about 3 months ago when I ran out of newsprint for my doggie. Who will read SPH "news", when the same can be obtained from the internet 2 to 3 days earlier ?

 

[blueRad]

Adblocker for the win.

 

[congo9]

It will be interesting how the PAP handles losing the penetration of their favourite mouthpiece. SPH was wonderful as it did not cost PAP a penny. Now to maintain similar levels of penetration they must either use a government agency to take the slack or pay thru their party.

They should drop the advertising fee a bit more.

 

[Brightkid]

As in typical SG style, the loyal subscribers gets screwed the longer they stay with one provider, just like in telco contracts.

 

[borom]

I'm surprised people still pay for the Straits Times when you can get free news on the internet.

If really cannot do without hardcopy, can always read the free "TODAY" from another mouthpiece mediacorp

 

[frenchbriefs]

does sph think their newspapers are a staple like petrol or water or electricity or public transportation that u have to fork out money no matter what lol?

this is the first time i heard in market forces that when demand or popularity for ur product or services is dieing u jack up prices....they must think sinkies are the biggest bunch of fools in the world,i hope SPH crash and burns like NOL shipping lines and other failing GLCs.

 

[congo9]

does sph think their newspapers are a staple like petrol or water or electricity or public transportation that u have to fork out money no matter what lol?

this is the first time i heard in market forces that when demand or popularity for ur product or services is dieing u jack up prices....they must think sinkies are the biggest bunch of fools in the world,i hope SPH crash and burns like NOL shipping lines and other failing GLCs.

With rising population and they are making lesser profit from publishing, i think it speaks volume of their business model, leadership. Then come jack up the price to shore up the profit because of diminishing demand despite increase in population, i think that's a master stroke for CEO to implement such a business decision.

I clap for these CEOs.

 

[halsey02]

The last time I bought ST was a Saturday about 3 months ago when I ran out of newsprint for my doggie. Who will read SPH "news", when the same can be obtained from the internet 2 to 3 days earlier ?

We can get HONEST NEWS from the Internet, why would we want to read a 'honest' newspaper like the Shit Times?. Honestly, I am a die hard newsprint reader.....I read most of my news etc from the Internet ever since the Internet started, I have stopped buying the "nude" paper for 20 years & I have missed nothing.

I buy the Shit Times on Wednesday, Thursday & Saturday....Saturday for the bulk of papers I get, the papers are for lining the floor so that my pooch will pee & shit on it.....previously before the increase to $1.10 for weekdays, $1.20 for weekends....I buy Weds, Thurs Fri & Sat....

When I was young I use to read the Straits Times, the predecessor of The Shit Times, from page to page, for it has informative write ups & well written articles & you would not believe it...the Horse Racing Section too. The horse racing section was written by this guy, forgot his name was so well written I know all the terms in horse racing etc...but till this day I have not wagered on it or step into the Race course...the point is....you get quality write ups....

not like today Shit Times....more for lining bird cages, pet's disposal system & live up to the name THE SHIT TIMES