The Australian Newsagents Federation has picked up the issue I raised yesterday about News Limited commentator Mark Day saying newsagents have been protected for more than fifty years.
The ANF response and comments by newsagents here serve to challenge News Limited to resolve the misinformation put about by the Day comment. Personally, I’d like to debate the issue with Day in a public forum.
Here is the ANF communication from yesterday in its entirety:
Alf Maccioni, CEO Australian Newsagents’ Federation has responded on behalf of the industry to Mark Day’s comments in The Australian, Monday 6 February.
In commenting on the plans of News Limited’s CEO Kim Williams to overhaul News Limited, Mark Day said Williams sees a need to reinvent the way newspapers are delivered and sold, which means a new approach to relationships with the newsagency business — protected from competition for more than half a century.
Mr Maccioni wrote:
In Monday’s Australian News Limited’sMark Day has made some inaccurate statements about the newsagency channel, namely that it is a protected channel. Newsagents have not been protected since last century when the ACCC deregulated the industry.
Newspapers are sold everywhere from petrol stations to corner stores; they are given away at hotels and football matches and discounted heavily on subscription – direct to News Limited. Newsagents have no monopoly on the sales of newspapers.
The only thing that newsagents do have all to themselves is the home delivery of newspapers.They serve their customers and get the paper through, even though they make little money doing so.
Newsagents receive 25% of a cover price that in some cases have not risen for 10 years.
Newsagents are not protected; they are usedby News Limited to keep their print product distributed.
Kim Williams is right – there is a need to reinvent the way newspapers are delivered and sold—rewarding and recognising the people who do this will be part of the future of newspapers.
News Limited has been promising newsagents a ‘new distribution model’ – and newsagents are still waiting.
The newsagents of Australia welcome Mr Williams’ statement that newspapers are not dead, that it is a customer-focused business, and look forward to his reinvention of the way newspapers are sold and distributed.
Much can be done to boost newspaper sales and fresh thinking in News Limited is the way to go about it; not stale thinking that newsagents are somehow protected andneed to be deregulated.
As much as News Limited, Australian newsagents want newspapers to survive and prosper and will work to bring this about – but not for nothing. They too seek a fair and just reward.
You could say that newsagents are over reacting. I’d say not given the timing of the comment from Day. News Limited has been chipping away at the newsagent business on a rang of fronts and doing so in a commercial environment which provides newsagents with no protection. So, Day’s comment is wrong, so wrong that the opposite is true thanks to the efforts of the company he works for.
I wonder whether we should go as far as to complain formally about the knowing inaccuracy of Day’s statement.
It’s great to see the industry reacting so strongly to this. Now, how do we act on it?
Was this response circulated to newsagents only, or has it been / is it being published publicly?
Absolutely.
Of course Mark is right.
However it is a pity that only newsagents know and understand the plight and cannot get their act together to articulate and submit with any strengthto where it counts.
As one who was very passionate about the newsagency system and still takes an avid interest because the newsagency system and their their retailing has much appeal (and would be regarded similarly by the community) I wish to contribute some thoughts.
Newsagents remain as a diminishing independent network outside the chains with opportunity of investment from independent small business operators.
( however such is not as strong as it was in the past)
Most accessing this site would know such so these words amount to little as they are being expressed to those understanding or clinging on in hope?
As one who was very much involved let me tell you what the real problems are….
1. lack of industry cohesion
2. lack of industry articulation and knowing how to go about lobby and submission
3. lack of preparedness to take some action as industry predecessors did many years ago.
The reality is that there can be much ‘hot wind and banging of the drum’ so to speak but unless the newsagency channel shows strength and appropriately lobbies and well articulates the situation the newsagency channel is doomed and that will be a pity.
We will lose the asset of the newsagency system ensuring there is a specialist newspaper and magazine distributor and retailer.
Best wishes guys but think you have lost it due to the ineptness of the past years.
Ken M.
Yes…. we are used by News Ltd to home deliver THEIR product and Yes…. we have not have C.P.I. increases for ten years and Yes….. News Ltd attitude is that they want blood out of a stone.
Our Asscoiations need to do more to change their mindset and realise we are family run businesses that need to survive just as much as they do and just as much as they need us to prosper.
Wake up News Ltd…..
If I worked for News Ltd I would be on their side. IT and the digital world has changed the industry forever and there will be no home delivery in 5 years.
We are being tolerated by News/Fairfax until they no longer need us.
In SA rounds are worth nothing any more
because the newsagent has simply become
a “deliverer” much like a postal worker.
We need to change too. Those of us who have got rid of (sold or passed in) our
distribution rounds and still have retail businesses will be ok so long as we continue to source product that will
continue to make us viable. Newspapers are no longer that product.
We had a promo this week of cookbooks for $2 plus a token from the paper. WE RECEIVED LESS THAN OUR USUAL SUPPLY of papers and couldn’t get any more. Consequently the consumer is aggravated with us and it is not our fault.
No matter – we need to build a bridge and get over it because Hartigan called us dinosaurs and now he is one as well.
The world is turning folks and we have to turn and evolve with it.
Papers are just a small part of my mix now
and I spend my energy on things to improve my business.
Here in SA rounds are being given back to
the Advertiser and I don’t think we are the only state in which this is happening.
Distribution only agents are in trouble and
putting heads in the sand won’t help.
Ken Murphy says he knows what the problem is/was.
Ken, nothing could have changed this brave new digital outcome – we need to
embrace it.
Journalists are in the same position as newsagents – being made redundant because anyone can blog or comment.
Tweeting and facebooking is bringing down
Governments all over the Arab World.
How powerful is that medium??
Rupert loved newspapers and yet here in
SA where his father started his business
career newsagents are starting to understand the inevitable change in our
lives and our industry.
Just for environmental reasons newspapers have to change and I think we
all need to acknowledge that fact.
We didn’t do it to ourselves – the world
is turning and change is inevitable.
June it is noted that you have commented….
Ken Murphy says he knows what the problem is/was.
Ken, nothing could have changed this brave new digital outcome – we need to
embrace it.
June I understand what you are saying but the newspaper and magazine sales are not yet dead. If such was the case why are newsagents registering indignation about the treatment being given???
Newspapers and magazines specialty gives the identification of the newsagency business as being unique. It may well be a myth and an image that is not backed by contributions to GP but it is the recognition that gives regard for the newsagency business
If as you contend it is not that important why bother with registering issue with it all.
Despite the digital age, newspapers and magazines will be around for a while yet. If not then newsagents should consider rebranding and changing their image and don’t worry about positioning of publishers any more?
But newsagencies ARE still protected. Can I buy the magazines I want in a clothing shop or from a cafe? No – because they’re not allowed to sell them. Am I wrong?
Allen there is no barrier to that happening and indeed it is the case in some stores.
Allen you are quite wrong. Try going into a BFC store and look at their mag range. And Spotlight. And Bunnings. Now you won’t get FHM in Spotlight, but you will get craft mags. You won’t get Time magazine in BFC, but you will get Caravan mags. At a newsagent you might get all of the above ( you will in my newsagency). No little cafe I know could afford the economies of scale to have an account with Network for example, but if they could, they can !
Baz it juts goes to show the misinformation out there and now supported by day’s comments.