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We live and work in exciting times - revolutionary times. Technology continues to recast the media industry.

The extraordinary advance of affordable personal digital technology and the stellar rise of social networks are both distrupting and transforming the media market making this a unique moment to be involved in the convergence sectors we focus on.

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Monday, 18 May 2009

thelondonpaper - unsustainable losses?

News International published results for its free London afternoon newspaper thelondonpaper last week.

Compared to the first 10 months of operation (September 2006 - June 2007) the paper lost less money in the next 12 months....

It lost ‘only’ £12.9m against £16.8m in the first 10 months.

How long can James Murdoch sustain these losses?

Well one thing is for absloutely sure, he isnt publishing out of love and a desire to entertain the commuting London public! He is prepared to sustain these losses for now in the hope and expectation that NI are successful in their bid for the lucrative and strategically critical morning distribution slot (currently held by Metro).

James wants and needs the slot to defend The Sun and The Times in London. Its a classic defence strategy. If they lose the bid (or its just too expensive) then I dont think the paper has a chance. Its toast.

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