British Newspaper Profits

London's big dailies last week took in their belts yet another notch. Since World War II their diet of newsprint has been cut two-thirds; the size of penny papers has dropped from an average 19 pages to six pages thrice a week and four pages other days, twopenny papers from 22 to ten pages. Most noteworthy is the fact that their lean diet has agreed with them.

The majority of big London dailies still make almost as much money as they ever did*--despite rationing, circulation allotment, soaring pulp prices (-L-26 IDS a ton as compared to a pre-war price of -L-11 53, a current U. S. price of $50 per ton). The reasons:

Circulation. Reader losses have been slight. The Times and Daily Telegraph ration circulation by insisting that readers register in advance with local newsstands, thereby eliminating "returns."

Staff Payrolls. News staffs have been cut about 25% by conscription since no exemptions are now allowed except for oldsters and key men. But salary savings are partly offset because most dailies pay conscriptees up to one-half their pre-war salaries.

Advertising. The key to the continuing profits of London dailies is that the scarcity of their space has made it more t valuable to advertisers. Ad rates have been upped to an average -L-9 per column inch (as compared to a pre-war average of about -L-5). But this average does not take into account such premium rates as -L-10 to -L-15 charged for "special position," i.e., front-page corners, space bordering editorials, etc. For a two-column ad eleven inches deep--the maximum allowed--an advertiser may pay the same price as formerly for a half-page. Penny papers last week changed from seven columns to eight, thereby reducing size of column inches, but they did not reduce rates. With advertising demand bigger than supply, most papers require advertisers to take turns.

Says Daily Express Editor Arthur Christiansen: "I empty my own wastebasket. Those of us who don't get called up have to do everybody's jobs. We are working like dogs."

Not the least of the benefits which war rationing has bestowed on London's big dailies is the limitation on their editorial space. Cramped for word room, they are more sharply edited, more succinctly written. Even editorials get to the point. Out of such enforced discipline has come a more readable British press.

*Exceptions are the leftist Daily Herald and News Chronicle, whose working-class subscribers have been remiss in renewing from evacuee addresses.

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