The Era of Amalgamations

insurance, newspapers, readers, newspaper, competitions, sales, pay and prizes

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More revolutionary than long distance wireless was the intro duction of receiving illustrations by wire. The chief London newspapers began in 1928 reproducing wireless pictures of events which took place thousands of miles away and it is expected that this development will become a regular feature of the press in a few years' time. The use of wireless telephony will also become more general. The effect of all these developments will be to widen the scope of newspapers and bring the people of the world closer together.

The Future of British Newspapers.

The revolution which took place in English journalism immediately preceding, during, and after the World War was characterised not by improvements in the traditional features of newspapers, but by the introduction of extraneous elements. These extraneous elements and methods were intended to force sales by making people buy more than one paper and several copies of the same paper. They were also in tended to keep readers once secured by non-journalistic attractions and thus permanently increase and stabilise sales. As sales were made the basis of advertising rates, after Lord Northcliffe had set the example of issuing sales certificates, it became imperative to maintain a ratio between sales and advertising rates.

The chief feature adopted to capture new readers and attach them to a newspaper was insurance. Newspaper insurance, begin ning modestly both as regards the accidents covered and the amounts recoverable, increased enormously until many subjects besides accidents to registered readers were covered, and the pay ments reached £12,500 on death by a railway accident. By the middle of 1928 the Daily Mail had paid over I r,000,000 under its insurance scheme. From the readers' point of view newspaper insurance is a good investment. No premium beyond the price of the paper is necessary. The system suits newsagents too, as they add to their list of permanent purchasers. Some newspapers carry their own insurance, while others pay premiums to insurance companies in proportion to their sales. In every case insurance companies investigate and settle claims. It does not seem that newspaper insurance has been inimical to normal in surance business. It is supplementary, not competitive.

Newspaper insurance has become a tremendous factor in the life of the people. Every year it is extended through its adoption by more newspapers and through the increase in payments. The newspaper which possesses the greatest financial resources will always lead in insurance. Heavy expenditure is incurred in the attempts to make insurance pay. An army of canvassers are

employed, going from house to house in order to secure new readers ; and poster and other advertising campaigns are carried on regardless of expense.

Newspaper insurance differs from company insurance. A com pany takes premiums from clients, but hopes that they may es cape accidents and prolong their lives. Newspapers on the other hand seem to rejoice—in headlines—over fatal accidents which befall their readers and boast about the amount of money they pay out. One reader killed in a railway accident brings a hundred new readers into the net. Newspaper insurance has come to stay.

In addition to insurance many newspapers resort to a variety of competitions to capture readers. These competitions, some of which require little skill or knowledge, carry big prizes. The coupon system, which usually accompanies prize competitions, induced readers to buy many copies of the same issue for the sake of the coupon, as entries are not limited. This kind of coupon competition was declared by the High Court in October 1928 to be illegal and was stopped. There are many other competitions, including beauty contests and competitions referring to all kinds of sport. The cross-word puzzle competition has become almost universal and handsome prizes are offered for correct results. This is a competition which requires a certain amount of knowledge to solve. The general knowledge examination which has been adopted by all kinds of newspapers and periodicals demands greater intelli gence, but in this case few prizes are offered.

The same comment applies to all competitions carrying prizes as to insurance—success depends on the amount of money spent in pushing schemes, and not so much on the merits of the schemes.

Other extraneous features have been introduced into journalism in the race for sales, or to stimulate advertisements, including devices by which readers may receive presents of various articles or beneficial considerations,—free trips, free entertainments, etc., —State events are organized and exhibitions held. Newspapers which do not resort to these expedients to foster business find themselves at a disadvantage. There are examples of newspapers which contain more news and better reading matter than their contemporaries, but which, because they decline to adopt insur ance, or competitions, or puzzles,—as undignified or incompatible with their conception of the mission of the press,—fall behind, become unprofitable, and unless subsidized for political reasons, cease to exist.

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