Sun Eases Price War

The Sun has from today increased its cover price by 2p to 22p, just over a year after the initial price cut from 25p started the price war. News International stressed that there were no immediate plans to increase the price of any other of their papers. This latest move means that the Times, at 20p, is the cheapest of any national newspaper.

It is understood that the 5p price cut has achieved most of what it can in terms of increasing market share, with an average circulation now of well over 4 million for the Sun. The latest newspaper ABCs showed the Sun’s circulation levelling off, increasing circulation month on month by only 0.3%, with more expensive rivals like the Mirror faring better, up 1.3%.

It is thought that Murdoch will wait for the Times’ circulation to rise further before the price will be increased again, in a bid to attract more advertising.

The effect of the Independent’s price cut to 30p, on 1 August, has been an increase of 30-40,000 copies daily. According to Independent’s own estimates, the first week of the cut saw sales increase from 247,000 to 289,000. Sales of the paper have also been boosted in Edinburgh where there is a price cut to 20p as a Festival promotion.