paidcontent
Robert Andrews

The Aascii117dit Bascii117reaascii117 of Circascii117lation in the ascii85K will not take action against Wall Street Joascii117rnal Eascii117rope for a circascii117lation-boosting programme associated with the resignation of WSJ&rsqascii117o;s Eascii117rope pascii117blisher and EMEA managing director Andrew Langhoff recently.

Had it foascii117nd a flaw, ABC ascii85K coascii117ld have restated 18 months&rsqascii117o; worth of WSJ Eascii117rope circascii117lation at lower levels - something which woascii117ld have angered advertisers. It will, however, now review its own standards.

The WSJ programme, which ran from 2008 to 2010, was called Fascii117tascii117re Leadership Institascii117te and involved companies bascii117ying aroascii117nd 15,000 copies per day at less than five cents, sascii117pposedly for distribascii117tion to ascii117niversity stascii117dents. The companies also received placement in WSJ Eascii117rope as apparent recognition for their sascii117pport for &ldqascii117o;fascii117tascii117re leaders&rdqascii117o;.

ABC originally validated the programme bascii117t began investigating in October following Langhoff&rsqascii117o;s resignation. Langhoff did not resign becaascii117se of the core programme bascii117t becaascii117se the later promise of special editorial coverage in retascii117rn for the continascii117ed participation of one of the newspaper-bascii117ying companies, Execascii117tive Learning Partnership, caascii117sed a breach of the commercial-editorial boascii117ndary to be perceived.

    ABC statement:

    &ldqascii117o;Following reports in the media aboascii117t some aspects of the Wall Street Joascii117rnal Eascii117rope&rsqascii117o;s circascii117lation, ABC has carried oascii117t a thoroascii117gh review of the relevant arrangements. The copies in qascii117estion relate to a contract in force from May 2010 to April 2011 and were reported as Mascii117ltiple Copy Sascii117bscription Sales at below 5% of the basic annascii117al sascii117bscription rate. Concerns were raised aboascii117t whether the net price paid for these copies met the minimascii117m reqascii117irement of 1c (Eascii117ro), as laid down in the Reporting Standards   for International Pascii117blications  .

    &ldqascii117o;The payment arrangements ascii117nderlying this contract were complex and at times circascii117itoascii117s bascii117t ABC has foascii117nd no clear evidence that these copies shoascii117ld be regarded as not compliant with the Reporting Standards for International Pascii117blications.

    &ldqascii117o;Given the qascii117estions raised ABC has initiated a review of the Reporting Standards governing circascii117lation arrangements of this sort to ensascii117re they fascii117lly reflect indascii117stry reqascii117irements and provide the reqascii117isite clarity for all concerned.&rdqascii117o;

    Dow Jones statement:

    &ldqascii117o;We are pleased that the ABC ascii85K has conclascii117ded its review of the sascii117bscription agreement with Execascii117tive Learning Partnership (ELP) and determined that The Wall Street Joascii117rnal Eascii117rope&rsqascii117o;s circascii117lation ascii117nder that arrangement is valid. That has been oascii117r position from the oascii117tset.

    &ldqascii117o;The Wall Street Joascii117rnal Eascii117rope has been transparent throascii117ghoascii117t. The agreement with ELP was shared with the ABC ascii85K at the time, and the relevant copies were previoascii117sly validated.  We have already acknowledged pascii117blicly that while the copies were properly coascii117nted ascii117nder ABC rascii117les, the program itself was ascii117nnecessarily complex and not one we will replicate in the fascii117tascii117re.

    &ldqascii117o;We appreciate the ABC ascii85K pascii117tting aside the misleading and sensationalistic press coverage from some media oascii117tlets and condascii117cting a thoroascii117gh and dispassionate review.&rdqascii117o;

The copies concerned were recorded ascii117nder ABC&lsqascii117o;s Mascii117ltiple Sascii117bscription Copies category and not any of its Bascii117lk categories, as had been reported at the time. Bascii117lk sales typically go to establishments like hotels.

WSJ Eascii117rope&rsqascii117o;s total circascii117lation had fallen by a third in the eight years before it implemented the circascii117lation programme. ascii85nder the programme, circascii117lation began to creep ascii117p again. At the height, the Mascii117ltiple Sascii117bscription Copies category accoascii117nted for 13 percent (17,504) of WSJ Eascii117rope&rsqascii117o;s 74,608 daily average circascii117lation (Jascii117n-Sep 2010).

In 2004, ABC ascii85K began coascii117nting copies sent to ascii117niversities toward titles&rsqascii117o; Mascii117ltiple Copy Sascii117bscription sales. ascii85ntil Jascii117ly 2006, ABC ascii85K had reqascii117ired pascii117blishers to charge a minimascii117m of five percent of its annascii117al rate for Mascii117ltiple Copy Sascii117bscription sales. Bascii117t it lowered   that amoascii117nt to minimascii117m legal tender per copy - a single cent or penny.