London Mayor Ken Livingstone has pledged to end the exclusive distribution deal between Metro and the Capital’s underground railway stations, paving the way for rivals such as Richard Desmond to launch titles aimed squarely at the lucrative commuter market.
Stating that the current deal with Associated Newspapers does not allow for free evening newspapers to be distributed via the London Underground network, Livingstone explained that several rival publishers would relish the opportunity to reach the 19 million passengers which use the network each year.
He said: “The contract entered into by London Underground six years ago with Associated Newspapers for the exclusive distribution of the Metro does not allow Londoners to get the additional benefit of a free afternoon newspaper. It is a matter of public record that other newspaper businesses would be willing to distribute a free afternoon paper and might even pay more than we are getting for the Metro deal.”
He added: “Transport for London therefore will be taking appropriate action to bring about the distribution of a free afternoon newspaper on the Tube, including resolving the long running Office of Fair Trading investigation negotiating appropriate changes to the agreement with Associated and preparing an advertisement inviting bids from newspaper organisations. The additional money from a new deal would of course be invested in further improvements to the Tube.”
One of Associated Newspapers’ rivals which are almost certain to make a bid for distribution rights on the tube network is Richard Desmond’s Express Newspapers group, which has made no secret of its desire to launch a free newspaper to rival the Capital’s Evening Standard, registering the name London i in anticipation of clearance from the Office of Fair Trading last year (see Desmond Eyes New Name For Planned London Free-Sheet).
However, Associated may also use the relaxed distribution agreement to make its recently launched Evening Standard Lite available to underground passengers, extending its availability beyond the current confines of central London and utilising the same infrastructure as the Metro (see Evening Standard Lite To Launch Next Week).
Associated Newspapers: 020 7938 6000 www.associatednewspapers.com Transport for London: 020 7941 4500 www.tfl.gov.uk
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