Battle cry sounded as regional titles fight for supremacy

<p>The battle for supremacy among the three regional newspaper titles </p><p>has turned into all-out warfare, with the three players - The Asian Wall </p><p>Street Journal (AWSJ), The Financial Times (FT) and The International </p><p>Herald Tribune (IHT) - launching major ad campaigns, rolling out new </p><p>print sites, initiating redesigns and, in one case, even slashing the </p><p>cover price. </p><p><BR><BR> </p><p>The three dailies have been spurred into action because the ranks of the </p><p>elite business class are growing, and all are positioning themselves to </p><p>try to capture as large a portion of this growth as possible. </p><p><BR><BR> </p><p>The battle is made all the more intense because the three papers are </p><p>courting roughly the same group of advertisers. </p><p><BR><BR> </p><p>Market leader AWSJ has introduced a more user-friendly design and added </p><p>colour for the first time, including on its masthead. It is also </p><p>printing three hours earlier in order to make home and office deliveries </p><p>before 7am and 9am respectively. </p><p><BR><BR> </p><p>AWSJ publisher and executive editor Urban Lehner said the earlier </p><p>delivery times were made possible because closing New York stock prices </p><p>and other late US news could be sent to subscribers via email in the </p><p>early morning from WSJ.com. </p><p><BR><BR> </p><p>However, it stunned the market by slashing its cover price in four </p><p>markets - Hong Kong, Singapore, the Philippines and Thailand - by </p><p>varying margins; in Hong Kong, it was reduced to HK$9 per issue </p><p>from HK$15. </p><p><BR><BR> </p><p>Media analysts said that any time prices for top-end products are cut, </p><p>it generates a negative perception, but Mr Lehner said the decision was </p><p>strategic and carefully thought out. </p><p><BR><BR> </p><p>"We are very strong in reaching the top executive level of companies," </p><p>he said. </p><p><BR><BR> </p><p>"But we think there are a lot of people out there at the next level down </p><p>who ought to be reading the paper and who would benefit from reading the </p><p>paper, but are frightened away by the price. </p><p><BR><BR> </p><p>"The reduction is a way to court the next level down - the upper middle </p><p>management down to middle managers - by offering the paper at a premium </p><p>price.". </p><p><BR><BR> </p><p>The changes at the paper are being supported by regional and </p><p>country-specific ad campaigns, both print, TV and outdoor ads. </p><p><BR><BR> </p><p>The AWSJ currently has a circulation of 68,000, and with the </p><p>improvements is hoping to boost this figure to 100,000 by the end of </p><p>next year. </p><p><BR><BR> </p><p>Dow Jones & Company international president Karen Elliott House said, </p><p>"We are number one and we don't intend to lose (this position)." </p><p><BR><BR> </p><p>The AWSJ's two regional rivals said they had no plans as yet to bring </p><p>down their cover prices. </p><p><BR><BR> </p><p>Analysts speculated that the AWSJ appeared to have been spooked by the </p><p>fact that advertising revenue at FT, its direct competition, soared by </p><p>almost 50 per cent in 1999 compared with the year before, according to </p><p>the CMR Report. </p><p><BR><BR> </p><p>While the FT's 1999 revenue of US$7.1 million was still far </p><p>behind the AWSJ's US$46 million, the rate of increase was </p><p>substantial especially when seen in light of the fact that the FT's </p><p>revenue languished below the US$5 million level for several years </p><p>prior to 1999. </p><p><BR><BR> </p><p>At the same time, the FT is poised to open print sites in Singapore and </p><p>Malaysia this year to add to its facilities in Hong Kong and Tokyo. </p><p><BR><BR> </p><p>It plans to roll out more sites over the next few years. However, it </p><p>still has the fewest print sites; the AWSJ has nine and, by June, the </p><p>IHT will have eight when it opens its Manila plant. </p><p><BR><BR> </p><p>The FT is also planning to add more journalists on the ground in the </p><p>region to bolster its Asia-Pacific content. </p><p><BR><BR> </p><p>The FT's regional director for Southeast Asia and Australasia, Deirdre </p><p>Ball, said: "We're moving up and we want to ensure the momentum </p><p>continues over the foreseeable future." </p><p><BR><BR> </p><p>The IHT - the second-largest in terms of ad revenue among the three </p><p>papers - does not consider itself as a direct competitor to either the </p><p>AWSJ or the FT because it is not an exclusively business paper. </p><p><BR><BR> </p><p>But despite this, even the IHT has launched its own ad campaign to </p><p>protect itself from the battle now unfolding between the AWSJ and the </p><p>FT. </p><p><BR><BR> </p><p>IHT chairman and CEO Peter Goldmark said: "There are two stately </p><p>dreadnoughts out there with 16-inch guns firing at each other because </p><p>they know only one of them in 10 years can lay claim to being the </p><p>world's financial newspaper. </p><p><BR><BR> </p><p>"And we are shooting from the general interest market because this </p><p>AWSJ-FT battle can be dangerous for us. A few stray shells can hurt us </p><p>so we're going in too to protect our interests." </p><p><BR><BR> </p><p>On the Internet side, the AWSJ has moved to bundle the print and </p><p>electronic product to provide readers with the opportunity to access as </p><p>much information as they need. The FT recently relaunched its website, </p><p>while the IHT is focusing more attention on its cyberspace business. </p><p><BR><BR> </p><p>The IHT's Mr Goldmark said: "We've been slow with our Website (but) we </p><p>are now investing in it to modernise it." </p><p><BR><BR> </p><p>Meanwhile, the Far Eastern Economic Review (FEER) and Asiaweek have both </p><p>redesigned their publication, following revenue drops of 17.6 per cent </p><p>and 5.3 per cent respectively as recorded by CMR. </p><p><BR><BR> </p><p>FEER editor and publisher Philip Revzin said the overall look has been </p><p>made more modern, but in terms of the CMR report, he said: "We want to </p><p>approach it by making the content as best as it can be ... we hope then </p><p>that the circulation and the advertising will follow." </p><p><BR><BR> </p><p>Both publications denied following the other's lead. </p><p><BR><BR> </p><p>Asiaweek publisher and managing director Peter Brack said: "It's purely </p><p>coincidence ... I don't think there is any more competition between the </p><p>regionals, certainly no more than there ever has been. </p><p><BR><BR> </p><p>"What I see basically is that the market is just evolving. In fact, </p><p>there is still room for new titles to enter the market, although I don't </p><p>think that will happen any time soon." </p><p><BR><BR> </p><p>- Asiaweek revamps; increases frequency of 'Net supplement: see story on </p><p>page 14. </p><p><BR><BR> </p>