Sarkozy intervenes in French newspaper industry

Nick | 24 Jan 2009, 08:40

The New York Times reports that French President Sarkozy has announced a package of measures designed to support the domestic newspaper industry, which is in crisis:

““It is the state’s primary responsibility to respond to an emergency,” he said, “and there is an emergency caused by the impact of the collapse of advertising revenue.” The French government’s support, which totals about 280 million euros, or $362 million, a year, would be increased by about 200 million euros a year for three years under Mr. Sarkozy’s plan.“

While the decline of ad revenues has prompted the short-term crisis, the industry has been in long-term decline as a result of structural challenges, such as poor distribution and expensive print costs - the result of a highly-unionised system. Already heavily subsidised, the product simply isn’t popular. According to the World Association of Newspapers, newspaper readership levels are half that of Germany or the UK, a trend which dates back to the Second World War.  Since then, French newspapers have done little to shake off their elitist image among the French public.  Titles like L’Equipe and Paris Match have filled a hole that the “popular press” occupy in other markets.

In this context, the other plank of Sarkozy’s strategy - subsidising a year’s free newspaper subscription for every 18 year old - seems unlikely to kick-start paper publishing, particularly at a time when the trend across the industry is towards free, ad-funded models and digital-only publishing.

As Chris Matyszczyk writes on CNET:

“But isn’t the habit of getting all your information online beginning when kids are 3 or 4? Isn’t waiting until kids are 18 before they can be blessed with a free copy of Le Monde a little like waiting to lose your virginity at 40? Or marrying your first rock chick at 53?

“Mr. Sarkozy is rightfully concerned that he must fight for an “independent, free and pluralistic” press. Does this mean, though, that such a thing is not possible online? Let me Google that and get back to you.“