Livingstone Seeks Increased Newspaper Revenue From Tube
London mayor Ken Livingstone has told a radio station in the capital that the value of an exclusive distribution deal for newspapers on London’s underground train network could be worth up to £4 million, a massive 400% increase on the value of the Metro‘s current distribution deal.
Furthermore, Livingstone is confident that a second deal, worth the same amount, for distribution of an afternoon newspaper could be brokered following approaches by several publishers, including News International.
Speaking on London’s LBC radio station the mayor spelled out the current agreement with Associated Newspapers for distribution of the Metro, stating that an increased cost to publishers would result in around £10 million less investment required by council tax to pay for the Tube’s operation.
Livingstone’s revelations follow news last week that the London mayor would soon end the exclusive distribution deal between Metro and the Capital’s underground railway stations, paving the way for rivals to launch titles aimed squarely at the lucrative commuter market (see Livingstone Opens Tube To Afternoon Freesheet).
The announcement sparked a flurry of speculation over which companies could operate a rival freesheet across the network, with Desmond’s Express Newspapers and Associated Newspapers well placed to create afternoon offerings.
Desmond is understood to be awaiting clearance from the Office of Fair Trading for the launch of his London i title, which is otherwise ready to run (see Desmond Eyes New Name For Planned London Free-Sheet). Elsewhere, rumours have circulated that Associated will extend the reach of its Evening Standard Lite title, or merge it with the Metro to create an afternoon edition (see Evening Standard May Drop Price To Boost Circulation).
Associated Newspapers: 020 7938 6000 www.associatednewspapers.com Northern & Shell: 020 7308 5090 Transport for London: 020 7941 4500 www.tfl.gov.uk
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