Sun, 8 November 2009
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The failing Spanish economy claims its first press victim as advertising revenues continue to plunge.MADRID – The Spanish edition of free newspaper Metro on Friday ceased publishing, becoming the first victim of a sharp economic slowdown in Spain that is just starting to impact the nation's press due to plummeting advertising revenues.
Per Mikael Jensen, the head of Metro International, the Swedish media group which runs the paper, announced the move late on Thursday, saying it was due to falling revenues and the stiff competition it faced in Spain where there are three other highly popular free dailies.
"Even though Metro in Spain has been losing less money than its Spanish free competitors, the worsening Spanish economic downturn, which during the beginning of 2009 has resulted in a collapsing advertising market, has now resulted in unsustainable losses," he said in a statement.
He said Metro, which is published in 17 countries, would concentrate on more lucrative markets.
Metro was the fifth most read daily newspaper in Spain with more than 1.8 million daily readers.
The newspaper, which employed 80 people, was launched in 2001 and by 2004 had achieved profitability but had been posting losses in recent years.
Spain's three other free dailies - 20 minutos, Que! and ADN - have a daily circulation each of nearly one million copies meaning the country's four free dailies had a readership that was equivalent of that of the country's paid papers.
Analysts had long warned that this situation was unsustainable during a sharp economic contraction that has led to a 35 percent drop in advertising revenues.
In January, Pedro J. Ramirez, the director of El Mundo, Spain's second-most sold newspaper after El Pais, said Spain's daily newspapers were in "a state of shock" because of the economic slowdown and the drop in advertising revenues.
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This in-depth profile of Spain includes geography, people, government, economy and transnational issues.
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