Sun down as King James's reign begins

Welcome back, James Murdoch. As the new boss of News International settles back into the Wapping hot seat this week after the festive break he will be greeted by sobering news that sales of the company's most profitable newspaper, the Sun are expected to crash below the 3m mark. On Friday the Audit Bureau of Circulations releases official results for December. If, as the industry expects, the circulation falls beneath the 3m barrier, it will embarrass editor Rebekah Wade and be the paper's worst result since 1974. All this in spite of the 20p price cut in London and the south east, said to be costing NI in the region of £680,000 a week. The company has been preparing the ground by emphasising the Sun's combined reach in print, online and via mobile. This month the Sun has also launched its popular £9.50 holidays promotion, which should push sales above 3m again. But what to do about long-term declining sales? James, this could be your first big test.