HONG KONG--The Sun, a morning daily, suddenly slashed its newsstand copy price in half, to HK$3 (45 yen) in October. The company said the move was "to commemorate the paper's seventh anniversary."
But that anniversary doesn't actually arrive until March this year.
Why the price cut? Industry pundits say free tabloid newspapers that started appearing on the streets in recent years are to blame as they make sharp inroads into the circulations of paid dailies like The Sun. The old guard is fighting fire with fire.
Two free tabloids were launched in 2005: the Headline Daily in July, followed two weeks later by am730. Starting at 400,000 copies a day, Headline Daily raised its circulation to 550,000 in October, riding a growing wave of readership.
Together with a third freebie, Metropolis Daily, started in 2002, the total circulation of free dailies is nearly 900,000.
The three tabloids are now seen as powerful new kids on the block in Hong Kong's newspaper market, which has a total readership of 2 million.
There are more than 10 newspapers in the market, from pro- and anti-China papers to general-interest and English-language newspapers--all competing for fickle readers.
The Headline Daily is owned by the publisher of the Sing Tao Daily, an established newspaper that charges its subscribers. The free Headline Daily features about 30 pages, all printed in color. It is distributed in new residential areas and at subway stations.
Like any other newspaper, Headline Daily covers broad topics such as crime, politics, entertainment and sports, all in short, succinct articles. Half of each page is filled with advertisements.
The other two free tabloids feature similar content and layouts.
Observers say competition in the Hong Kong market is becoming excessive, with many papers fighting for scoops, running sensational headlines and big photos of scantily clad young women.
In addition to its half-price campaign, The Sun is also giving away presents, like instant noodles or gift certificates, to its readers.
Rival newspapers, meanwhile, are more cautious about lowering their newsstand prices.
"We don't have the strength to absorb a cut in the price per copy," noted an employee in the business department of one paper.
Among paid newspapers in Hong Kong, the Oriental Daily News boasts the largest circulation at 470,000 copies, followed by Apple Daily with 340,000 copies. Apple Daily leans toward criticism of the Chinese government.
Ming Pao, a paid newspaper that aims for a more high-brow readership, claims a circulation of 106,000 copies, while the pro-China daily Ta Kung Pao has 92,000 issues. Publishing in English, the paid South China Morning Post has a circulation of 100,000.
Free tabloids are also gaining readers in cities worldwide, such as in Britain and Canada.
