Highfield talks about his plans to to take the regional newspaper group upmarket. The company will increase the number of ABC1 readers from 2.5 million to nearly 3 million with his acquisition of i. He says he won’t increase to cover price (the paper cost 40p and sells 270,000 copies/day).
Two numbers keep sticking in my head. We have got 9 per cent of daily newspaper circulation and 3 per cent share of national advertising revenues in print. I think the pendulum will swing back to quality. Advertisers want quality audiences in print and online, and that is what we can deliver. Our strategy of moving ever-more upmarket has got to be the right one.
Highfield also dismisses the suggestion that quality is suffering because of cuts to Johnston Press journalists.
If you ask them ‘Do they produce better content than they’ve ever done?’, I’d hope they’d say yes. [Social media, reader-generated content and real-time analytics mean the editorial product has] probably never been of a higher quality. [But] the economics do not allow you to employ the same number of people as 20 or 30 years ago.
Highfield says of the £24.4m acquisition of the i newspaper from Evgeny Lebedev. He intends to build the brand’s digital presence, increase the distribution of the print edition, targeting small- and medium-sized retailers like post offices and newsagents, and expand to all areas of the UK, including Northern Ireland, where the paper is not currently sold. He will improve editorial by taking 17 existing members of staff and hiring others to form a team of 50. The paper will also draw content from Lebedev’s The Independent’s website and the Evening Standard for £850,000 a year, as well as from Johnston Group’s regional papers. Highfield says that the purchase is about building scale for Johnston Press and attracting bigger advertising. He says scaling by acquiring small regional media groups would have taken a long time and been very expensive.
We are in one quarter of the country and we want to be in all of it, not least because this is a scale game and we wanted to go after more national advertising revenue and have a bigger train set across which to offer our digital services. I’ve always had a fundamental belief that video didn’t kill the radio star. New technology comes along, but it rarely wipes out what came before it. I think people will still want print for many years to come.
Highfield is interviewed by MediaBriefing’s Thackray about how Johnston Press has been addressing the structural challenges facing the business, how it is adapting to digital, and how it plans to tackle mobile. Highfield:
People do not buy a local paper to turn to the small ads and sell a push bike. With that having migrated… you can argue it was a major missed opportunity for the regional press not to make more of those verticals like motoring or property… but that’s the past, and now we have a much more stable environment, and our audience numbers… have never been bigger.
Highfield is interviewed by Douglas at Media Playground 2014 conference. They talk about the death of print, going mobile-first, the long-running spat between the regional press and the BBC and the future of local journalism.
You need to get digital growing pretty rapidly to make up for print decline. We are getting to that digital tipping point.