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PR Newswire
24-05-2012, 10:17 AM
There are a few days in the year where there is no print, so this has to be deducted from the costs of buying from newsstand. Also, if buying ad hoc, it is highly unlikely that one will buy every single day. Sure to have a few days where one missed buying.
However, the important point is not whether SPH gets more revenue from selling papers through newsstand or through subscription. SPH don't make profit (or make little profit) from selling papers; it makes profit from selling advertising space. And how well they can sell their advertising space is directly depending on how many people read their papers, ie, the paper circulation rate. Imaging if everyone buys paper through subscription, the circulation rate will be certain and it is easy for them to plan and sell their advertising space.
In the ideal world of SPH, they would hope that everyone sign up the subscription. In that case;
1. They can collect significant sum of money in advance. Revenue is locked in long term.
2. They can be certain of the circulation rate. No issue of over or under printing papers
3. They can reduce their selling and distribution costs significantly. Their distribution channels will be steamlined. No need so many delivery trucks, delivery men, middle men etc. Can consider outsourcing delivery services to those retirees or part timers, just like what Singpost is doing.
But of course, SPH ideal world is very far from the actual situation.
However, the important point is not whether SPH gets more revenue from selling papers through newsstand or through subscription. SPH don't make profit (or make little profit) from selling papers; it makes profit from selling advertising space. And how well they can sell their advertising space is directly depending on how many people read their papers, ie, the paper circulation rate. Imaging if everyone buys paper through subscription, the circulation rate will be certain and it is easy for them to plan and sell their advertising space.
In the ideal world of SPH, they would hope that everyone sign up the subscription. In that case;
1. They can collect significant sum of money in advance. Revenue is locked in long term.
2. They can be certain of the circulation rate. No issue of over or under printing papers
3. They can reduce their selling and distribution costs significantly. Their distribution channels will be steamlined. No need so many delivery trucks, delivery men, middle men etc. Can consider outsourcing delivery services to those retirees or part timers, just like what Singpost is doing.
But of course, SPH ideal world is very far from the actual situation.