When the first issue of Metro hit the streets of Stockholm in February, 1995, many media-watchers scoffed at the concept of a free daily newspaper aimed at time-strapped urban commuters. But since then Metro has spread to more than 100 cities worldwide and has bred scores of imitators.

Now it appears that some of those imitators are beating Metro at its own game. On Oct. 22, Luxembourg-listed parent company Metro International («www.businessweek.com») reported losses of $32.7 million on sales of $314 million during the first nine months of 2007. In 2006, by comparison, Metro International posted annual profits of $13 million, the first black ink in its history.

The company admits that it’s struggling against competitors in several countries, including France and Spain, where rival giveaway papers have pulled ahead. Even in its original home market of Sweden, Metro has been squeezed by the launch of three competitors since 2002. “There’s a huge cannibalization,” says Piet Bakker, an associate professor of journalism at the University of Amsterdam who tracks the spread of free dailies. Rivals Lead with Local News

The competition is fiercest in Europe, where free dailies are widely distributed to commuters in major cities. Bakker says there are now 130 such papers across Europe, with total circulation of about 26 million, up from 11 million only three years ago. In the U.S., where fewer people use mass transit, there are about 40 free dailies with a total circulation of 3 million, he says.

One of Metro’s toughest challengers is the free daily 20 Minutes, owned by Norwegian media group Schibsted («www.businessweek.com»). Launched in Spain in 2000 and in France in 2002—at about the same time as Metro—20 Minutes is now the most widely read newspaper in both countries. It has nearly 2.4 million readers in Spain, well ahead of Metro’s roughly 1.7 million. And the two papers are locked in a tight race in France, where 20 Minutes has 2.4 million readers, vs. 2 million for Metro.

Analysts credit the success of 20 Minutes to its jazzier visuals and more conversational tone, plus a stronger emphasis on local news. Metro has a higher proportion of international coverage and stories that run in multiple local outlets. “If you put copies of the French, Spanish, and Swedish editions next to each other, you won’t see a big difference,” says Patrick Bartement, director general of OJD, a group that audits media circulation in France. By contrast, Bartement says, “20 Minutes is very French.” Metro also has lagged behind 20 Minutes in setting up news Web sites.

Metro has problems in the U.S., too. Third-quarter advertising revenues were down 5% at its Philadelphia edition and 12% for the Boston version, in which The New York Times Co. («www.businessweek.com») holds a 49% stake. Ad sales in the New York City edition were up 18%. “The credit crunch in the States, I think, is having an effect,” Chief Financial Officer «investing.businessweek.com» told BusinessWeek. Financial Pressure

Also weighing on the company’s third-quarter results were severance payments to «www.businessweek.com» (BusinessWeek, 6/7/04) «investing.businessweek.com», who retired in July. «investing.businessweek.com», a Danish television executive who was formerly Metro’s global editor-in-chief, will become CEO on Nov. 1.

«investing.businessweek.com», who has served as interim CEO since Tцrnberg’s departure, says the company has hired management consultants to review its strategy. “The readers expect more from Metro as competition has intensified,” he says. “We need to move into a more mature business model, without losing the fleetness of foot.”

Investors expect more, too. Metro International’s Stockholm-listed “B” shares have fallen by one-third so far this year and have lost more than 60% of their value since the start of 2005. They traded up slightly after the quarterly earnings announcement, to 6.45 Swedish kroner ($1.00) on Oct. 24.

Bakker says Metro is in a precarious position because it has no other business to fall back on—unlike 20 Minutes’ owner Schibsted, whose holdings also include traditional newspapers, magazines, and TV and online operations. In the battle for supremacy among free newspapers, he says, success may come down to “who has the deepest pockets.” Metro International may have to dig deeper to stay in the game.

The British No1 Andy Murray claimed a comprehensive 6-2, 6-2 victory over eighth seed Paul-Henri Mathieu in today’s Marseille Open 13 final.

The Scot, who missed Great Britain’s Davis Cup tie against Argentina last week because of a knee complaint, was fighting fit as he brushed aside the Frenchman in just over an hour, breaking Mathieu twice in each set to reach his second final of this year.

Murray started strongly, immediately breaking the home favourite who aided his opponent with a nervous double fault. Mathieu held his next service game to make it 2-1 but Murray maintained his advantage, winning the fourth game without losing a point to go 3-1 up. The set then went with serve, allowing Murray to serve out the opener comfortably.

Mathieu rallied to hold his opening service game in the second set, despite Murray having a break point. But it was only a brief reprieve, as Murray - six years younger than his opponent - reeled off three consecutive games to take gain a commanding advantage.

The Frenchman was overwhelmed as Murray broke again and then soon served for the match, earning three match points with an ace. Mathieu survived the first but hit a backhand into the net on the second to allow Murray ro rapidly wrap up the match and book a place in tomorrow’s final against either Mario Ancic or Marcos Baghdatis.

(02-16) 08:21 PST , (AP) —

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NEW YORK (AP) Д The Oprah touch doesn’t just work for traditional books. More than 1 million copies of Suze Orman’s “Women & Money” have been downloaded since the announcement last week on Winfrey’s television show that the e-book edition would be available for free on her Web site, «www.oprah.com».

“I believe `Women & Money’ is the most important book I’ve ever written,” Orman said in a statement released Saturday by Winfrey. “So this was not about getting people to buy the book, but getting them to read it, and that was the intention behind this offer.”

According to Saturday’s statement, more than 1.1 million copies of Orman’s financial advice book were downloaded in English, and another 19,000 in Spanish. The demand compares to such free online sensations as “The 9-11 Commission Report,” which the federal government made available for downloads, and Stephen King’s e-novella, “Riding the Bullet.”

The publishing community has endlessly debated the effects of making text available online, with some saying that free downloading is a valuable promotional tool and others worrying that sales for paper editions would be harmed. The Authors Guild and the Association of American Publishers each have sued Google for its plans to scan and index books for the Internet.

The offer for “Women & Money,” originally released a year ago by Spiegel & Grau, a division of Random House, Inc., has not kept people from buying the traditional version. As of Saturday, the book ranked No. 6 on Amazon.com. The paper edition of “The 9-11 Commission Report,” published in 2004 by W.W. Norton and Co., was a best seller for months.

“I can tell you that with respect to the `9-11 Report,’ the free download did not seem to hurt sales at all,” Norton publisher Drake McFeely told The Associated Press on Saturday. “There were people who wanted it quickly, in a less convenient form, and that was clearly a different market from the people who wanted the traditional book.”

He said free downloading of books does concern publishers, but “if Norton had been given the opportunity for an Oprah Winfrey plug, and part of the deal was making the book free online, we would have gladly taken it.”