Associated Newspapers on verge of axing plans to distribute more Metros in London

Associated Newspapers is considering axing plans to increase its distribution of the London edition of its freesheet Metro because of a negative response from media agencies.

Media buyers are understood to have condemned the plans to increase its 550,000 circulation by an extra 300,000 issues as "lacking commercial sense".

One source says: "Unless they get us to increase our yields for the circulation increase, then it just doesn’t make commercial sense."

Other buyers believe advertisers will be unwilling to stump up funds for the increase in advertising rates.

Metro is now understood to be reassessing their proposals and some buyers believe they are likely to scrap the proposals altogether. The paper is thought to be keen to increase its circulation by distributing on buses and restocking bins during the morning rush hour.

The ABC figures for February, which were released last week, show that Metro’s distribution has dropped by 0.94% from 548,007 to 542,844 between January and February 2007.

Associated is understood to have been concerned that the increase in the print run of the Metro would impact on the sales of the Daily Mail. The ABC figures also show a 4.08% year-on-year decline in circulation for Daily Mail.

Metro declined to comment as Marketing Week went to press.