By Richard Scarlett
So, with the high profile (and conveniently synchronised) launches of thelondonpaper and London Lite, the tabloid armies of Rothermere and Murdoch have well and truly thrown down the gauntlet and declared all-out war on the streets of London. Roll on the dirty tricks, cheap stunts and consumer harassment, as both papers try to survive in the already overcrowded freesheet market.
But nowadays, it seems that it’s not just the newspapers that have resorted to dangling the idea of something for nothing under our noses. As I flicked through my giveaway newspaper and read about the flurry of companies launching their own ‘gratis’ services left, right and centre, I realised that 'free' is just the latest strategy to win consumer loyalty and sustain precious advertising revenue.
But in the midst of all this excitement, I have to ask myself - is ad-driven revenue really a sustainable model for the freesheet business or just the latest example of ‘dotcom denial’? Probably the latter.
Ad spend for many companies is extremely sporadic, and one of the first things to be cut whenever corporate savings need to be made. Add to that the crowded and competitive market space that these companies operate in and the whole thing begins to take a different shape. As more companies jump onto the ‘freebie’ wagon with hopes of monopolising their particular market, I’m sure it’s not only me who can hear the faint but worryingly familiar sound of a bubble bursting?
But why worry? For consumers in the meantime, it looks like the offer of a free lunch has generously been extended to breakfast and dinner too!
Of course, it's not that simple. A primary goal of the free products and services rush is to force down prices and ruthlessly drive competition into the ground. In true ‘party-pooper’ mode, I believe that while we’re downloading our free music, watching our free films and reading our free papers, it may be worth sparing a thought for the people who are being dealt the losing hand in this cutthroat game.
No, I’m not on about the industry big shots who can afford to give things away in the hope of long-term gain, nor the increasingly agitated and outspoken record companies who can no longer overcharge us with ridiculously marked up CDs. I’m talking about the workers who could easily find themselves out of a job simply because their company can't compete in this emerging ‘freebie’ culture.
A little dramatic maybe, but just remember that the next time we take up the offer of a free product or service, we may well be helping to destroy another business run by hard working people just like you and I.
So, about that free lunch? No thanks - I’m feeling quite nauseous now.
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