A leading media analyst has told MPs that half of the UK’s local and regional newspapers will close within the next five years.

Claire Enders, the founder and chief executive of Enders Analysis, told a hearing of the Commons culture, media and sport select committee today that “many titles” were already losing money and being sustained by beneficent publishers.

“We are expecting that up to half of all the 1,300 titles will close in the next five years,” Ms Enders told the committee.

“Many titles are loss-making and are being sustained by the good graces of their owners. That may not last.”

Ms Enders’ comments are likely to be viewed by regional publishers as somewhat contentious.

Recent half-yearly results suggest that most regional newspaper operations remain profitable, even though profit margins are dramatically down from the levels of two or three years ago.

Questioned about the future of newspapers at the same hearing, Johnston Press chairman John Fry said: “The bulk will remain but there will be casualties.”

But Trinity Mirror chief executive Sly Bailey said it was “impossible to say” whether Ms Enders’ prediction would prove correct.

The committee hearing comes on the day of the Digital Britain report due to be published this afternoon.

Ms Bailey said she hoped the report would contain recommendations on the relaxation of media merger rules, saying: “The recession will do for us if we are not allowed to consolidate.”

Comments

Cynical ex-TM journo (16/06/2009 12:44:19)
Ms Bailey said: “The recession will do for us if we are not allowed to consolidate.”
I take it she means consolidate the share price of her ailing company at the expense of further cuts in editorial staff. The quality, or, should I say, lack of quality within TM is down purely and simply to the fact that her titles have been paired down beyond the bone to pay dividends to shareholders that the business cannot support.
The sooner this harridan and her ilk are driven out of the media, the better it will be for all of us.

Bluestringer (16/06/2009 13:30:55)
What a crock of horsesh*t.
So “many titles” are already losing money and being sustained by “beneficent publishers” and the “good graces” of proprietors, are they?
Maybe in the imaginary world created by Ms Enders, they are.
And the same applies to the aptly-named Sly; constantly banging on about being allowed to “consolidate”, by which she means of course impose vast regional monopolies and close down as many newspapers as her little heart desires.
Let’s hope the MPs saw through them (fat chance).

R McGeddon (16/06/2009 16:22:53)
Why thank’ee young mistress, were it not for your benevolent kindness, me and me poor little foundlings would starve.
You keep selling off bits of yer fathers estate, an’ sending the peasants into exile and we’ll all be grateful fer the crumbs off yer table, so we will.
jus don’ sell the ol’ plantation….
How on earth do these dimwits keep their jobs….

Bluestringer (16/06/2009 16:43:25)
haha! The OFT has ruled against wholsesale changes to the merger laws.
Brace yourselves for apocalyptical wails of doom, gloom and impending catastrophe from the likes of Sly etc.
I don’t suppose it will occur to her for one second to consider selling any of her “recession-ruined” titles to local consortia, who might actually consider a million quid profit a year not bad going, will it?

dave (17/06/2009 09:16:55)
I want to be a chief executive

Northern Snapper (19/06/2009 00:10:34)
beneficent publishers – well there’s an oxymoron if ever I saw one.