Free daily newspapers ‐ business models and strategies

Free daily newspapers, first introduced in Sweden in 1995, have proved to be much more than a passing phenomenon. By 2002, 80 free daily newspapers were introduced in 26 countries, 60 of them still exist. In thirteen countries free papers are responsible for more than ten percent of the total daily weekday circulation. The total circulation of the 60 free papers is almost 10 million copies, every day more than 20 million people read these papers. The success of the free papers is the result of their efficient cost structure and their ability to reach a new and relatively young audience. When looking more closely at the firms that publish these free newspapers two different models emerge; first, the entrepreneur entering a new market, and second the local or national newspaper firm. In the second model, free papers are launched to prevent other firms entering the market or to counter new firms already in the market. In the long run these obstructive tactics may develop into more positive strategies. Most readers are former ‘non‐readers’ or people who read paid and free newspapers Existing firms are developing strategies to benefit from the growing readership of newspapers created by free papers.