'Tabloid freebie going national'. The Australian, on Mark Day and Lara Sinclair, said:
THE free Melbourne commuter newspaper MX is to be transformed into a national brand with local editions in Sydney and Brisbane before the end of this year.
MX, which targets commuters aged 18 to 34 with an edgy, celebrity-led mix of news, sport and entertainment content, is published by the Herald and Weekly Times, a subsidiary of News Limited, publisher of The Australian.
The new editions are expected to launch in Sydney soon, using the editorial production resources of the Melbourne paper.
Media buyers were told two weeks ago that the launch was planned for next Monday, July 4, but it is understood last-minute distribution issues could delay the date. Talks were being held late yesterday between News Limited, Sydney City Council and City Rail representatives and further discussions are likely before the issues are resolved.
According to sources briefed on the top-secret project, each city's edition will share some content, with each having a strong local entertainment component.
News Limited management expects the greater economies of scale resulting from using Melbourne production and content resources, plus a national advertising budget that is tipped to triple with the new editions, will put the paper permanently into the black more than four years after it first launched.
The Melbourne edition is profitable most weeks after posting a 40per cent year-on-year increase in advertising revenue in the financial year ending today.
MX will be distributed at Sydney bus, train and ferry commuter locations used by more than 250,000 people a day. It is understood the Sydney City Council has been consulting representatives of the Melbourne City Council about distribution issues and approaches have been made to City Rail for exclusive access to railway platforms.
Brisbane MX is expected to launch with a similar strategy later in the year.
A big obstacle facing the launch was concern that MX would cannibalise the afternoon circulation of paid Sydney tabloid newspaper The Daily Telegraph.
"The real worry is that The Daily Telegraph still has a very strong core audience of former Daily Mirror readers," a source said. This was also an issue at the time of the Melbourne launch, but it did not affect the Herald Sun. Nevertheless, The Daily Telegraph has been moving to shore-up support among media buyers and this week launched its biggest trade advertising campaign in years.
The Sydney MX is aiming to pull in national advertising revenue of about $4 million a year with a further $3 million annually coming from local retail and entertainment advertising. Sydney media agencies have been briefed on the project.
National bookings, spearheaded by big budgets allocated by telecommunications companies such as Telstra, Optus and Vodafone, have been the main generators of growth for MX. The paper delivers a large hard-to-reach audience in the 18-34 demographic.
"The success of MX vindicates our early bold decisions to target the age demographic rather than commuters and to make it an afternoon, after-work pick-me-up, rather than follow the global model for metro papers, which is morning distribution," a source close to the project said.
News Limited chief executive John Hartigan would not confirm the project yesterday. "We have been updating our business plans since MX was launched in Melbourne," he said. "It has been a great success, well received by a community segment which did not have a newspaper reading habit. They have a high disposable income, are young and therefore highly desirable to advertisers."
The head of HWT, Julian Clarke, would not comment on expansion plans for MX but he has previously said the model was transferable to other cities. He described the product as "a brand for a young market".
MX launched in February 2001 in a pitched battle against Fairfax's early morning free commuter giveaway Melbourne Express, which closed seven months later after failing to stem its losses.
Fairfax has been considering its options in the face of the imminent launch. It has reportedly been in talks with the Swedish Metro Group, pioneers of free commuter papers, about a possible joint venture. But any large-scale investment by Fairfax would bleed the company of millions of dollars when management has been demanding a $100 million turnaround to its bottom line.
MX reported a Melbourne readership of 144,000, up 4.3 per cent, in May, and is reportedly planning an initial print run of 70,000 in Sydney, to be increased as more distribution points are established.
MX, which targets commuters aged 18 to 34 with an edgy, celebrity-led mix of news, sport and entertainment content, is published by the Herald and Weekly Times, a subsidiary of News Limited, publisher of The Australian.
The new editions are expected to launch in Sydney soon, using the editorial production resources of the Melbourne paper.
Media buyers were told two weeks ago that the launch was planned for next Monday, July 4, but it is understood last-minute distribution issues could delay the date. Talks were being held late yesterday between News Limited, Sydney City Council and City Rail representatives and further discussions are likely before the issues are resolved.
According to sources briefed on the top-secret project, each city's edition will share some content, with each having a strong local entertainment component.
News Limited management expects the greater economies of scale resulting from using Melbourne production and content resources, plus a national advertising budget that is tipped to triple with the new editions, will put the paper permanently into the black more than four years after it first launched.
The Melbourne edition is profitable most weeks after posting a 40per cent year-on-year increase in advertising revenue in the financial year ending today.
MX will be distributed at Sydney bus, train and ferry commuter locations used by more than 250,000 people a day. It is understood the Sydney City Council has been consulting representatives of the Melbourne City Council about distribution issues and approaches have been made to City Rail for exclusive access to railway platforms.
Brisbane MX is expected to launch with a similar strategy later in the year.
A big obstacle facing the launch was concern that MX would cannibalise the afternoon circulation of paid Sydney tabloid newspaper The Daily Telegraph.
"The real worry is that The Daily Telegraph still has a very strong core audience of former Daily Mirror readers," a source said. This was also an issue at the time of the Melbourne launch, but it did not affect the Herald Sun. Nevertheless, The Daily Telegraph has been moving to shore-up support among media buyers and this week launched its biggest trade advertising campaign in years.
The Sydney MX is aiming to pull in national advertising revenue of about $4 million a year with a further $3 million annually coming from local retail and entertainment advertising. Sydney media agencies have been briefed on the project.
National bookings, spearheaded by big budgets allocated by telecommunications companies such as Telstra, Optus and Vodafone, have been the main generators of growth for MX. The paper delivers a large hard-to-reach audience in the 18-34 demographic.
"The success of MX vindicates our early bold decisions to target the age demographic rather than commuters and to make it an afternoon, after-work pick-me-up, rather than follow the global model for metro papers, which is morning distribution," a source close to the project said.
News Limited chief executive John Hartigan would not confirm the project yesterday. "We have been updating our business plans since MX was launched in Melbourne," he said. "It has been a great success, well received by a community segment which did not have a newspaper reading habit. They have a high disposable income, are young and therefore highly desirable to advertisers."
The head of HWT, Julian Clarke, would not comment on expansion plans for MX but he has previously said the model was transferable to other cities. He described the product as "a brand for a young market".
MX launched in February 2001 in a pitched battle against Fairfax's early morning free commuter giveaway Melbourne Express, which closed seven months later after failing to stem its losses.
Fairfax has been considering its options in the face of the imminent launch. It has reportedly been in talks with the Swedish Metro Group, pioneers of free commuter papers, about a possible joint venture. But any large-scale investment by Fairfax would bleed the company of millions of dollars when management has been demanding a $100 million turnaround to its bottom line.
MX reported a Melbourne readership of 144,000, up 4.3 per cent, in May, and is reportedly planning an initial print run of 70,000 in Sydney, to be increased as more distribution points are established.
This certainly is an interesting way to do things. I have noticed many more papers available around and about the place, it must be growing in popularity. I can remember times at Flinders St Station where there isn't a paper to be seen, though many do get left on train seats.
I suppose it's better than sticking your feet up there... 
I guess advertising is the primary revenue, but it probably would be used to slowly sway readers onto buying the Herald Sun.
