Comments on: Bogus numbers and weird plans in Germany

By: Piet Bakker

Piet Bakker — Tue, 09 Dec 2008 11:42:15 +0000

It’s €400m according to FTD. But as I read it, it would involve launching costs and the losses of the first six years as they don’t expect to break even before that.

By: Andreas

Andreas — Tue, 09 Dec 2008 11:11:24 +0000

So the €400 m only refer to launching costs? Maybe it’s the money needed to get profitable what would make the number more realistic …

By: Piet Bakker

Piet Bakker — Tue, 09 Dec 2008 11:04:03 +0000

Launching costs are only made once, and mostly before the launch. Break-even means for most companies that the costs for running the operation during a month, quarter or year are at least equal to the revenues in the period.

By: Andreas

Andreas — Tue, 09 Dec 2008 10:56:40 +0000

Just to get it right: Launching costs means cost till break even?

By: tkerper

tkerper — Fri, 01 Aug 2008 14:36:53 +0000

I think nobody want´s to share the own market with new competitors.

By: Piet Bakker

Piet Bakker — Fri, 01 Aug 2008 14:20:48 +0000

and when you launch a free daily in Germany you will find yourself without any friends?

By: tkerper

tkerper — Fri, 01 Aug 2008 14:18:51 +0000

You´ll know the most of local free dailies are distibuted after a launch of a national paper to protect the own market. (Exception Spain, Austria)
In Germany the local publisher are very strong in business with paid dailies and free weekly papers with home delivery. In agglomerations the title BILD of germans biggest player is distributed in single sale in high frequented areas. To overcome the local barriers you should have many good friends.

By: Piet Bakker

Piet Bakker — Fri, 01 Aug 2008 13:08:23 +0000

True, but is also raises the barrier for any party to launch. In particular if local editions need to have their own content as well. The ‘national’ model is not the only one as can be seen in almost any European country.

By: tkerper

tkerper — Fri, 01 Aug 2008 13:04:28 +0000

“Why a free daily ‘must’ be launched in several markets at the same time is also not clear”. *** May be to give the advertiser a national reach? ***