'BOSTON GLOBE' CUTS PRICE IN RESPONSE TO 'METRO'

Posted
By: Lucia Moses Free Newspaper Had Debut This Week


The Boston Globe said it isn't worried about competition
from Boston's newest daily, but nonetheless halved its single-
copy price to 25 cents and added hawkers in areas where the free
Metro is distributed.

Globe spokesman Richard Gulla said the price cut effective
Wednesday is a temporary response to Metro, which launched
Thursday. Metro plans to distribute 175,000 copies daily
through hawkers and boxes.

"We are aware that in the first few weeks there will be interest
in Metro, but we think it will dissipate over time," Gulla
said. "Our content and quality and presentation is very, very
different, and we think it is far superior to Metro."

Metro, with 19 editions in 14 countries, is a colorful,
quick-read tabloid geared toward young, non-newspaper readers. In
Boston, its second U.S. launch after Philadelphia, it enters a
crowded newspaper market with two major local dailies, the
Globe and Boston Herald; national papers; and
several community and weekly papers.

The Herald said it has made no change in strategy in
response to Metro. The Herald said it continues an
ongoing program of discounting single copies from 50 cents to 25
cents in selected high-traffic areas.

Metro's launch got off to a rough start. State transit
officials took 14 of its boxes out of subway stations four days
before the launch, saying Metro failed to ask permission
first. A transit spokesman also said that the day of the launch,
commuters complained of overly aggressive Metro hawkers.

Metro contended there was no official permission process
and said it was intent on distributing in subway stations
alongside other papers. "We are absolutely determined that any
place there's another newspaper inside the subway system, we are
going to be there," Publisher Russel Pergament said.

Metro had originally sought exclusive distribution rights
in the stations, but transit authorities rejected such a deal.

Metro International has run into trouble with other launches. In
Philadelphia, the established dailies sued over an exclusive
distribution agreement the paper reached with that city's transit
system. The case is pending.



Lucia Moses (lmoses@editorandpublisher.com) is an associate editor covering business for E&P.



Related story:
'METRO' TAKES ON BOSTON THIS WEEK (04/30/01)



Copyright 2001, Editor & Publisher.

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