Tough Test Ahead For Independent

The scale of the problems facing the new owners of the Independent titles is clearly evident from the large drop in sales both newspapers have faced during the 1990s. ABC figures from 1990 to 1998 for the Independent reveal a drop in sales from 411,378 for July-December 1990 to 255,324 for August-January 1998. The Independent On Sunday has fared no better, with sales of 352,335 in 1990 compared to 287,562 for August-January 1998.

The new management at the titles has now set its sights on a modest increase in circulation for both titles within three years. They hope to increase sales of the papers by 25,000 and 30,000 for the daily and Sunday titles respectively.

A key part of the titles’ future success will, of course, depend on investment. While Independent Newspapers has made much of pumping money into their editorial resources, no figures have yet been mentioned. What is beyond doubt is that any financial “rescue-package” will need to involve hefty sums. Two packages were put together in 1996 by the Mirror Group and Independent Newspapers – £23m raised in April of that year and another, undisclosed figure, eight months later – yet these were unable to pull the title out of its sales dip.

The upshot of this is that O’Reilly’s buyout has provided hope among advertisers and agencies that the Independent and Independent On Sunday may, at last, be on the road to recovery. It does mean, however, that the industry may become frustrated if signs of a recovery are slow.

For commments from the industry on the takeover of the Independent titles, click Industry Reacts With Cautious Optimism Over Independent Move.