The entry of the exiles
20 Minuten and Metropol are gaining an additional distribution channel: Kiosk AG
20 Minuten and Metropol can also be purchased at selected Kiosk AG kiosks. The latter wants to break through its monopolist image and hopes to attract more young customers.
The idea of (also) distributing commuter newspapers via kiosks is nothing new. Around a year ago, both 20 Minuten and Metropol knocked on the door of Kiosk AG, which belongs to the Valora Group. At that time, however, Kiosk AG gave a clear "no", "to protect the existing publishing houses", as Valora press spokeswoman Stefania Misteli explains today.
But this bastion of the publishers is crumbling. From February 5, Kiosk AG will also provide the two commuter newspapers with a dispenser space at selected kiosks and licensees (tobacconists, major distributors) - on a trial basis and for six months. According to Managing Director Urs Zeier, Metropol will be available at 30 locations each in Basel and St. Gallen, while 20 Minuten will be available at 60 kiosks each in Basel, Bern and Zurich, according to Publishing Director Rolf Bollmann. However, station kiosks are not an issue for either free newspaper for the time being.
But why this U-turn at the Valora subsidiary? "Since 20 Minuten and Metropol are also printed by Swiss publishing houses, we no longer have to be considerate," says Misteli firmly.
Selling more newspapers with commuter newspapers
According to the Valora press spokeswoman, however, a number of other considerations also played a role in the decision. Firstly, Kiosk AG wants to break through its monopolist image. Misteli says that it is often said that Kiosk AG is hindering the market with its powerful position. "But now we are showing that as a press distributor we want to guarantee freedom of the press."
Secondly, the commuter newspapers will make better use of the company's own sales organization. And thirdly, according to Misteli, Kiosk AG hopes to attract more young people to its sales outlets, a customer segment that is still underrepresented there, but definitely has purchasing power.
Another important point is that the already declining retail sales of daily newspapers have become more pronounced because of the commuter newspapers, which Kiosk AG has also felt (see WW 31/00). Misteli also confirms this. "We don't give out any figures", she says and emphasizes that the commuter newspapers have hardly any influence on the sales of magazines and other kiosk products. "Overall, newsstand sales have actually increased in the last year."
The expectations that the two commuter newspapers have of the trial are completely different. "We have currently reached our target circulation and are not looking for an additional distribution channel. With Kiosk AG, we are therefore simply testing whether we can reach our target audience better and more cheaply via the kiosks than with the means we have used so far," says Zeier from Metropol. And emphasizes: "We don't want to reach just anyone."
In contrast, Bollmann sees distribution via kiosks as a "supplement to traditional distribution". As the selected kiosks are all in well-frequented locations, but not at train stations, "we have the opportunity to reach more non-commuters such as housewives, internal commuters (pedestrians) or car commuters."
Both also assume that the newsstand presence of their titles is likely to cause a stir among publishers. Misteli takes a different view. "We don't expect emotions to run high."
And how will they react if other publishers get a taste for it and want to distribute their free titles via newsstands? "We are certainly open to this," says Misteli - and refers to the freedom of the press.
Comment
Revolution in the kiosk display
By Markus Knöpfli
Imagine that in the coffee aisle at Migros or Coop, alongside various types of coffee in half-kilo packs (five to seven francs), you now find a new variety - in smaller packs, but free of charge and with regular supplies.
Unimaginable. But Kiosk AG dares to do what Coop and Migros would never do. It is the first Swiss "wholesaler" to offer two products - daily newspapers - free of charge in over 200 "stores". Regular and fresh every day.
Seen in this light, this move by Kiosk AG is revolutionary. On the other hand, the expected protest from the united publishers is understandable.
But wait! Can coffee be compared to a free newspaper? Aren't commuter newspapers and their content more like an item of clothing that is only available in a child's size? If it's too short or skimpy for you, you'll leave it behind even if it's free. Everyone grows out of it.
Seen in this light, the move by Kiosk AG is "only" pioneering, while the expected protest by the united publishers seems somewhat overanxious.
But the comparison with the item of clothing also falls short. Because reading the newspaper and digesting information is work. And I don't always have the same amount of time or desire to do it. So, depending on the situation, I choose the menu that suits my available time, my hunger and my wallet. In other words: Kiosk AG is most comparable to a restaurant that also offers a small free sandwich on its menu - which would most likely appeal to children and young people. This is precisely the audience that Kiosk AG wants to appeal to more and more.
In this respect, Kiosk AG's move is innovative, but overdue. After all, why hasn't it already been offering even more youth-specific free titles (Junior, MEX or whatever they're all called)? Seen in this light, the expected protest from the united publishers sounds hollow and hypocritical. After all, they could have come up with this idea a long time ago. What's more, they're all eyeing the commuter newspapers' print jobs anyway.
So nobody should protest!
