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Stretching the market and politicians

FAKT, Polish version of BILD

The reactions to “FAKT” coming to the market were visible even before the first issue was distributed. Couple of month earlier “Super Express” hired new editor in chief, ambitious journalist Mariusz Ziomecki, who in the ‘80s emigrated to US and had a successful carrier in “Detroit Free Press”. Copying best foreign formats, he first introduced tabloid’s type of journalism to Polish market. Reaction of “Gazeta Wyborcza”, the market leader, for a long time was a mystery. It’s publisher, Agora, was spreading news about starting tabloid of its own, but finally the response was different. On the very day of “FAKT” premiere a free daily “Metro” was distributed in Warsaw for the first time, especially on metro stations. It was a diluted version of “Gazeta Wyborcza”, done in a cheap, but smart way. For sure it took away some of potential “FAKT” readers.



At start “FAKT” printed 700 000 copies and was selling about 450 000 of them, while its main competitors: “Gazeta Wyborcza” was selling 450 000 and “Super Express” close to 300 000. After only two months “Fakt” with 1 zloty cover price and heavy TV promotion became number one in selling copies. ”Super Express” had cover price from 1,60 to 2,10 zl, depends on a day, and “Gazeta Wyborcza” has been priced even higher, up to 2,80 zl. The tabloids direct price war started in spring 2004: at the beginning of April, when “FAKT”, satisfied with its primary position, raised the price in Warsaw to 1,20 zl daily, “Super Express” lowered the price to 1,20 zl, just making it even with its main competitor. But the place on the market was already taken: in first six months of 2004 “FAKT” achieved average selling of 550 000 copies, while “Super Express” was selling about 270 000, losing 12% of its market from the year before. “FAKT” success was also painful to local papers, which lost 17% of their share of the market. But in all, thanks to the “FAKT” introduction, in first half of 2004 dailies market in Poland has grown by 13%.

Such a “dragon’s move in” must cause hostile reactions. “Media Express”, publisher of “Super Express” (half Polish, half Swedish Bonnier capital), called Axel Springer Polska to anti-monopole court, accusing it of “overusing its monopoly position” and price dumping. According to competitor “FAKT” publisher looses o it “few million” zlotys a month. Axel was saying that it would spend 15-20 m E in first 5 quarters for promotion only and expect to be out of red in 3 to 5 years. The court case is pending, experts say it would be difficult to prove “FAKT’s” dominant position on a market, which consist only of two players.

The arrival of “FAKT” was well noticed not by competitors only. However Polish journalists got used to work for a colour press and had to agree for its requirements, very often different from communist era traditions, but still the way “FAKT” has been edited was a shock for many of them. “I don’t feel myself a small wheel in a machine - says one of “FAKT” reporters, in his ‘30s, who previously had worked for another daily, also owned by a foreign company. “There (after a year he still does not say “here”) I feel a soldier, every day going to war.”

On this war the first rule is that there is no story without picture. Picture is a king – no picture means no news. So usually a picture has to be taken first, at the door opening, before even asking for permission. If the subject says no, his or her face will be pixeled, but face is a must.

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