Reach PLC's economies of scale
Curran and Seaton
Ownership of national titles like The Daily Star and The Daily Express also enables the paper to repurpose content for different audience segments: the Mirror catering for a C2DE male heavy readership, with the Express refashioning the same output for a more upmarket female audience.
Reach PLCs ownership of national sister publications like the Daily express and the Daily star also enable the company to affect huge cost savings across the conglomerate. Reach Printing Services, for example, offers a centralised printing facility for the conglomerate’s papers - rationalising traditional news publications production costs, while ownership of the Reach Solutions subsidiary offers advertisers a comprehensive ad placement service that no single paper could afford to run by itself.
The sharing of conglomerate assets, Curran and Seaton argue, enables contemporary news brands like the Mirror to provide services that a rival independent publication would struggle to reproduce. This generates significant entrance barriers to new providers who might want to enter the highly competitive UK newspaper market and explains why the number of available national titles is declining instead of increasing.
The ownership of subsidiaries that produce similar products or services. Reach PLC for instance is horizontally integrated as a result of its owning both The Daily Mirror and The Star.
Media terminology used
A media market dominated by a small number of companies. UK print news, for example, consists of only twelve national papers that are controlled by just five media conglomerates.
Economies of scale
Achieved when two or more subsidiaries are owned by a media company, allowing conglomerates to make savings through bulk buying or by sharing resources.