The online press gazette, in Heseltine proposes magazine distribution levy, reports that the former deputy prime minister believes the industry should raise an “administrative levy” to help smaller shops sell more magazines. It claims he is backed the Periodical Publishers’ Association. Hesletine is quoted: “I was appalled by how bad the relationship was between publishers and newsagents. It didn’t make any sense for the producers not to see eye-to-eye with the front end. Nobody benefits from inefficient distribution, least of all publishers.”
With 65% of titles carried by Australian newsagents cash flow negative for newsagents, it would not be surprising to find that newsagents here start to organise themselves for similar financial support from publishers. Sales of popular titles suffer from the financial and operational drain on newsagents by the specialist less popular titles. That is, the very point of difference which publishers and newsagents crave about newsagencies is starving the channel of resources to compete with supermarkets, petrol outlets and convenience stores which sell only the top performing titles.