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Ei Samay, the Bengali newspaper from the Times of India stable, has slashed its cover prices, as it nears its first subscription renewal phase after the launch last Durga Puja.
Ei Samay is now available on the news stands for Rs 2.50, half of what market leader, Anandabazar Patrika is selling at i.e. Rs 5. Bennett, Coleman and Company Ltd BCCL's Bengali newspaper, too, was launched at a cover price of Rs 5.
There are many versions as to why Ei Samay prices were brought down.
According to TOI insiders, it hasn't met circulation projections. Currently, according to Times Group's internal figures, Ei Samay's circulation is 3,50,000 copies. “We are doing good, but the estimate was higher and that is why the cover price has been slashed so that more people would be interested to give it a shot. We are focusing more on cash sales,” he said.
However, Kaustubh Chatterjee, brand head of Ei Samay, said they have slashed prices as the Bengali news daily has got a firm foothold in the market in a very short span of time.
"We entered in October and have done well. Plans are afoot to take it to next level. We are doing away with the subscription model for Ei Samay. The revenue earned from each paper sold through vendors is higher than the ones sold through subscriptions,” he said.
A Response official told Business Standard that it was a marketing strategy to boost sales in order to stand a chance to compete with one of the oldest and strongest Bengali news daily (Anandabazar Patrike from the ABP group). Times Response handles the advertisement and branding aspects of TOI and Ei Samay.
At the time of launch last year, Ei Samay had made it very clear that its competition was with Anandabazar Patrika, even as the ABP group launched a Bengali tabloid, E Bela. However, after the drop in prices, Ei Samay is closer to E-Bela, which is priced at Rs 2.
The move from the Times group has fuelled speculation whether ABP would go the same way. But Vinod Gupta, a vendor who heads many retail points at a crucial city juncture said, there was no indication of the same.
When contacted the ABP spokesperson did not comment on whether a price cut is on cards.
"ABP does not need to do anything of that sort. It is already the leader and that too by a strong margin. The arrival of Ei Samay has not made any impact on ABP's Bengali daily readership. In fact smaller dailies like Ek din, Sangbad Pratidin and Sakalbela have felt the tremors,”
The circulation of Anandabazar Patrika is around 5,80,000 copies in Kolkata while Ei Samay, which is available only in the city has achieved 3,50,000.
According to Audit Bureau of Circulation figures, Anandabazar Patrika has a circulation of about 12,50,000 in Bengal, Other competitors in the vernacular space are Bartaman, Aajkaal, Sangbad Pratidin, Ganashakti, Sakalbela, Ekdin and NEWS Bangla.
Ei Samay was launched on 15 October 2012 at a cover price of Rs 5
Close to six months since launch, cover price slashed by 50 % to Rs 2.50
Times to do away with monthly subscription model for Ei Samay
Revenue earned on every paper sold through cash sale is higher than subscription model
Ei Samay circulation stands at 3.5 lakh according to their internal figures
The circulation of Anandabazar Patrika is around 5.8 lakh copies in Kolkata
Vendors say Ei Samay's launch had an impact only on the small Bengali dailies
E Bela, newly launched tabloid from ABP, is priced at Rs 2
