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Celebrity magazines price war
The first week of May 2004 saw the celebrity-based weeklies fighting for
market share, with the main weapon being price:
Now cuts price to £1
N&S aggressive tactics
Effect on Hello! and OK!
Table: Celebrity magazines: details and sales

Now was
launched in 1996 to bolster IPC's ageing women's weeklies, rather
than as a celebrity title. Mel Gibson was the launch cover star |
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IPC's Now cut its cover price by 20p to
£1 in May 2004, in a bid to maintain its position as the top-selling
celebrity weekly - it was just 30,000 copies a week ahead of Emap's
Heat. It also needed to see off competition in the weekly celebrity
magazine sector, from two new, downmarket celebrity magazines from
Northern & Shell (N&S), as well as Emap's Closer.
IPC was in a weaker strategic position than its competitors in only
have a single celebrity title. It is marketed as one of the company's
group of five women's weeklies. Both Emap (with Heat and Closer)
and N&S (with OK!, New! and Star) have employed
a 'cluster publishing' strategy to protect their top title (Heat
and OK! respectively). Not only does this mean they can spread
costs, but also that they can use a variety of tactics, including
price and advertising rates, to undermine competitiors. Sales of Now
were down by 6% in the latest sales figures, against a 2% rise for
Heat.
Now was originally marketed as 'The smarter woman’s read'
with higher production values and better quality content than IPC’s
other women’s weeklies. However, it dropped that tagline and
all the celeb titles are well-produced. It has gone in for Heat-style
celebrity bashing, but retained non-celeb content with health, fashion,
cookery and cookery pages. It has never carried television listings
(all the competition, bar New! do), probably because this would
hit its listings magazines, such as TV Times (Emap and N&S
don't have any).
The IPC weekly carried ‘Now only £1’ in a large
yellow circle on its 5 May cover. In fact all the issues for the first
week of May promoted themselves on price, except Heat, which
appeared to be keeping to the high ground with its £1.50 tag
(in small type). Now’s cover (5 May) was also promoting
a ‘15% discount at Warehouse for everyone’. Its coverlines
were: ‘Beach bodies’, mainly an excuse to show unflattering
images of people such as Geri Haliwell, Jerry Hall and Gillian Taylforth;
‘'Posey Posh'’; and ’'23 real life [sic] diet success
stories'. Heat ran a similar knocking lead: ‘When surgery
goes wrong’ with Posh’s boobs, Jordan’s boobs, Jodie’s
nose and Jacko’s everything. |
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Closer
is regarded by Emap as its most successful launch yet. Its sales of
385,036
each week to January 2004 were 15% up on the previous six months |
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N&S aggressive tactics
Back to top
However, Richard Desmond, who owns the Daily Star and Express
newspapers, as well as OK! publisher Northern & Shell (N&S),
has adopted aggressive pricing strategies for his downmarket titles,
Star and New!
Star has dropped from its launch price of £1.50 to £1,
and appears to be exploiting its OK! credentials to attack
Emap’s Heat. ‘50p less than Heat’
shouted one cover flash and ‘From the OK! People’
another. New! Similarly carried two flashes promoting its price
drop from 70p and OK! link: ‘Only 60p’ and ‘From
the OK! People’.
Emap’s Closer is leading on price,
with ‘Only £1’ in a large, garish yellow flash.
N&S and Emap have been at loggerheads for a couple of years. In
February 2002, when OK! carried Hot Stars
as a supplement (which it still does), Emap warned N&S against
launching a Heat clone. Then, in March 2003, Heat carried
a gossip magazine supplement called Ooh! Scandal! as a spoiler
in the week that N&S was launching New! |
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OK! went
weekly in 1996 with Richard Barber as editor |
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Effect on Hello! and OK!
Back to top
All this activity suggests that the celeb market will be in turmoil
for some time. The original magazines, Hello! and OK!
suffered, initially at the hands of Heat. Both saw falling
sales, with Hello! down by more than a third year-on-year and
OK! down almost 10%. In contrast, New! and Closer,
had a first set of sales figures around the 340,000-mark. Heat
recorded a 2% rise.
However, OK! was able to buy its way ahead of OK! by
splashing out on exclusive access to big weddings, such as the Catherine
Zeta-Jones and Michael Douglas event that ended up in the high court
when Hello! managed to sneak in a photographer. The latter
has stuck to its royalty-based guns but even Desmond's wallet has
been stretched and OK! increasingly has had to make do with
B and C-list names from soaps and reality TV shows. Its free Hot
Stars supplement also cheapens the OK! package. |
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Celebrity magazines 2003-04 Back
to top
|
|
Title |
Publisher |
Launch date |
ABC
sales
Jul-Dec 2003* |
ABC
sales
Jul-Dec 2004* |
|
Closer |
Emap Entertainment |
28 Sep
2002 |
385,036 |
504,350 |
Guess Who!
|
Harmsworth Magazines
|
Summer 1993
|
closed
|
n/a |
| Heat |
Emap Entertainment |
6 Feb 1999 |
566,731
|
552,215
|
| Hello! |
Hello!
Ltd |
17 May
1988 |
350,374
|
382,391
|
Here!
|
Gruner
+ Jahr
|
10 Jun
1996 |
merged
with Now, 12 May 1997 |
n/a
|
| Hot Stars |
free with
OK! (N&S) |
7 Feb 2002 |
n/a |
n/a
|
| New! |
Chic Magazines
Ltd (N&S) |
3 Mar
2002 |
334,310
|
396,079
|
Now
|
IPC Media
|
24 Oct
1996
|
592,076
|
619,186
|
| Ooh! Scandal! |
free one-off
with Heat |
1 Mar 2003 |
n/a |
n/a
|
| OK! |
Northern
& Shell plc |
Apr 1993
(weekly since 20 Mar 1996) |
570,927
|
529,492
|
| Reveal |
ACP Natmag |
23 Oct
2004 |
n/a |
239,907
|
| Star |
Northern
& Shell plc |
8 Nov 2003 |
n/a |
211,551
|
| *Source:
Audit Bureau of Circulations
(ABC) |
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