Daily Mail publisher turns to price rise to counter advertising slump
This article from the telegraph tells us that early last year the Daily Mail were set to increase the price of their newspaper by 5p. Since then Newspaper sales have gone into further decline and the Daily Mail has decreased it's circulation of newspapers meaning the price increase wasn't necessary because a fall in newspaper sales was inevitable the price increase just sped things up. A reason why prices were increased was because of a 12% fall in advertising revenues, therefore they needed to make up the lost revenue somewhere.
I don't think increasing the price of a newspaper will do much to cover any costs or lost revenues, however newspapers are a necessity so in business terms it makes the product price insensitive so people may buy newspapers regardless of the price and a price increase of only 5p may not even be noticeable to some people. A Paywall may have been a better option for the daily mail as it has millions of daily viewings and people for the right price would pay to see their news.
I don't think increasing the price of a newspaper will do much to cover any costs or lost revenues, however newspapers are a necessity so in business terms it makes the product price insensitive so people may buy newspapers regardless of the price and a price increase of only 5p may not even be noticeable to some people. A Paywall may have been a better option for the daily mail as it has millions of daily viewings and people for the right price would pay to see their news.
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