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But what? Economies of scale in the newspaper market are best achieved with the local and regional press. The ideal business model, says Peter Kreisky of Mercer Management Consulting, is a geographical cluster of regional titles. With local monopoly power, this can bring down the cost of paper and ink, of printing and distribution, and of marketing. Hollinger enjoys many of these benefits in the Chicago area, where it has 97 papers.
But it is far harder to achieve cost-sharing across international borders. Most national papers are still run from and owned in their home country. Those that belong to an international owner, such as Hollinger, Tony O'Reilly's Independent News and Media and Rupert Murdoch's NewsCorp, concentrate on English-speaking markets.
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