News Limited head office responded (sort of) to Mediaweek and to Crikey about my blog post News Limited in crisis on newspaper home delivery yesterday.
It is curious that News Limited would respond to the two media outlets which published my blog post in full but not to me or here at the blog. I guess that I understand why not – to do so would have legitimised this blog and that’s the last thing they would want to do. News people have told me that they are not to engage here. This in itself is interesting because News people have sought me out on this issue.
News corporately has sought me out to brief me previously so that at least one blog post was written with the knowledge of their position on a development.
What News does not understand is that a response here would have been respected by newsagents, especially a response form the states where most newsagent relationships have been managed for years.
Now to the response. Here is the statement News Limited provided to Mediaweek:
News Limited has responded to comments made by Mark Fletcher on his Newsagency Blog earlier this week.
Mediaweek received this statement this morning:
Contrary to reports, there is not a crisis at News Limited on the future of home delivery of newspapers.
We have for some time been working on a plan to improve our distribution system which delivers our newspapers to retail and homes.
We have consulted newsagents and their associations throughout this process and welcomed feedback through meetings, focus groups and via a dedicated email address we set up. Using information newsagents have been helping us collect we are doing the hard task of understanding the pros and cons of the current system and how best to improve it.
We want to get this right and so are working methodically and diligently. Newsagents may feel frustrated that this is a long process, but it is difficult one. It is taking longer than anticipated but the project has not been put on hold.
We will be discussing our next steps with newsagents within the next month.
I stand by what I wrote yesterday – that there is significant disagreement within the News Limited organisation about how the company is handling and should handle the future of newspaper home deliveries.
What I see in the response from News is, with respect, spin. The company has been at this for more than two years and they want more meetings. They know that the numbers currently do not work because of the controls they have placed on then.
Newsagents need certainty. News can provide this by allowing newsagents to charge commercial fees for delivering newspapers and by encoding their relationship with distribution newsagents in a contract on which newsagents can rely for entering into leases and negotiating with their banks.
Nurses in Victoria are facing a similar situation on pay. They are acting. Other essential services in Victoria faced this over a year ago and they acted. When will newsagents go beyond their bleating and act? I think that News thinks newsagents will not act and this is one of the reasons the company has, after two years, not provided the certainty sought.
Time to tell News where to stick there run and see if that fits there plan.
All I can say to people who are thinking of dropping their runs is look at the cold hard figures and make a business decision, forget the history, forget the emotion. if you do dump them you will need to work on a subagent margin for papers. If you rely heavily on deliveries and the figures make sense then keep them. As far as customers go the sun still shines, they are very understanding if you talk to them and explain if the runs are sending you backwards.
We did it and have never looked back. Times are hard at the moment but I’d rather be looking at it after a good nights sleep rather then getting up at 2am 7 days a week and still struggling.
News has missed an opportunity here to respond to newsagents. They responded to the wrong people and with a weak message.
If they don’t care, they won’t even bother to respond. I think it is positive.
Mark, and others, VANA/ANF is the vehicle responsible for handling this issue. That’s what newsagents pay for. I left
the associations for that very reason. They were not doing their job. I include all the state associations in this.
They have been toothless tigers and have
not had the guts to follow through for newsagents but with no contracts (no leverage) it might be time for them to say
“everybody out” to the distribution people.
Associations are supposed to represent all their constituents not just retail so where are they on this issue.
Newsagents have been terribly let down by
those purporting to represent them.
June on this issue I am aware of what the associations have been doing. They have been to every meeting respected by News, gathered data from newsagents, presented this and presented News with alternatives. The problem here is with News. They have pfaffed around and done nothing, leaving uncertainty in the air.
Did we expect them to admit that they are responsible for this mess? And they never “communicate” with newsagents, we only ever get the same spin they published in this response. Hopefully though, they will realise that newsagents are waking up, and will act.
Won’t be holding my breath, still getting rid of my run.
BTW, good work Mark on getting your post on Crikey and Mediaweek!
June,
Your comment merely displays your ignorance on the involvement of all the State Associations and the ANF on the issue over the last year or so.
You would be doing the industry a big favour if you started to find out and support the actions being taken, rather than giving ignorant criticism.
Please believe what Mark is saying – the industry respects his words and you should to!
Dont feed the troll… Her comments here were as relevant as they were to the hortern discussion… merely trying to distract from the discussios at hand…
Be Fair, I don’t answer to anonymous
comments. At least I am proud to put
my name to ANY comments I make.
Peter, Dont feed the troll ?????? your comments are are a disgrace .
In fairness to June ,The ANF and state associations have been inept on many occasions in the past .
I cannot make comment as to the success of their negotiations on this issue to date.
But part of the reason home delivery is performing so badly for newsagents , Is a result of poor negotiating from Newsagent representative bodies .
It might be fair to say that the associations have put a lot of effort into this issue. But considering the result you would have to question their effectiveness.
This is not a time to be either complimenting or crticising ANF/VANA. But it is a time where more will be achieved if we all sing with one clear consistent voice. Are we sure that ANF / VANA have been sufficiently forceful or tactically agile in representing our views to the publishers. Is it time to outsource the job? We could pay some hard headed mercenary lobbyist types (eg Hawker Britten et al) to convey our message more agressively.
I guess it is expected to receive antagonistic and immature comments from individuals due to putting noses out of joint on these contentious posts.
No Newsagent would talk to someone like that, let alone a Lady.
Peter, June is not a troll.
Kevin, The associations are as strong as newsagents make them.
Mark you have the right intent.
Associations should be as strong as we make them. We, as members, should be able to trust the board and the executive team to get on with the job. In practical terms we need to have a channel by which we can communicate our thoughts and ideas to the board. This seems to be a missing element at present.
Kevin the other missing element is when it comes to elections. The % who vote is usually very low.
Point taken. There is a big difference between saying and doing.
However a stronger executive team could have a greater effect with the consequence of stimulating more interest and participation from the member base.
Peter, the only troll I have heard of is with
the 3 billy goats gruff and he was sooooo
powerful (and sooooo scary) and the 3 billy goats were scared of him/her.
I stand by my comments that we have not
had good representation at the state and national level and I am still to be convinced otherwise. I agree with Kevin and have said for many years that we need to rid ourselves of this top heavy bureaucracy (ANF) and employ a lobbyist when we need one and a lawyer when we
need one. There is a huge amount of waste at the top level for very little return to the agent on the ground.
Trying to keep fiscally afloat does not amount to good representation and I do
not resile from that position.
The history for newsagents’ representation is abysmal and that is why
News Ltd are able to do whatever to us.
They know we are fragmented.
Congratulations Mark on a well written article that started this blog… Well done.
The facts are that Newsagents are hurting and for once it is not Fairfax who are the culprits.
News have not done any serious marketing in the past three years in Victoria. They have not had a C.P.I. price rise in nearly seven years as well and wonder why with their costs escalating that they have no additional income to cover marketing and the rising costs.Add to this we have no tenure of Contract either. This is part of the problem. Give Fairfax their dues…. they subscribe and re subscribe and our base at my Newsagency has been retained. Well done for bringing this matter to the forefront…..
And I have been watching our The Australian sales closely since they put the paywall up. Sounds unbelieveable but in recent weeks not only has there been a reversal of a downwood trend but we are actually selling a few more than we have been. Why would that be?
To June and others
Mark is correct when he says that what association elections are for. To those who critise the associations let me ask you this ‘ when did you stand for election to try to achieve your version of change’.
The associations are doing the best with the limited time and resources they have. You can help by adding to the resources by way of membership and devoting some of your time. Yes, it sounds tough when you have your business to run, but then so do the association board members.
Talk is cheap but action is critical.
John, my husband served on the newsagency boards at
both state and federal level so I do know
what I am talking about.
We have only been newsagents for 33 years so I don’t consider that my talk is
cheap and I certainly consider that I have
taken action on many occasions – much to
the chagrin of some of my peers.
I do not currently belong to any associations because I consider that they have been remiss in their duty to us as
newsagents. Personal decision only.
No one has to agree with me.
It is a political game that the associations play with the ANF while the states believe
that they do it better than the ANF and
they have NEVER changed.
I would like to live long enough to see that
turn around and it would be a pleasure for
me to be able to say I was once again a
member of the ANF but I haven’t seen any
runs on the board.
Fully agree June, we have operated for 23 yrs and have seen the association infight for the entire time so we no longer belong to any, Too much politics and not enough action, we only hear from associations if they have something to gain themselves.
June and Luke
Regardless of what happened in previous years, even when your hubby was on the board. Step back and have a look at what is happening today.
Qld, Vic and NSW are all aligned and these guys are working for you.
Don’t like it – then change it.
Get out of the industry if you can’t change, because change is with us.
John
Settle down, It was years of consistant pressure from many Newsagents, extremely low membership and from contibuters from this blog who were couragous enough to share their thoughts.
New blood have come in and yes you are right it does appear to be some unity amongst the Associations, tackling the issues that are important to the Newsagency Channel.
What June & I may be asking is we want to see runs on the board. If you read some of the past blogs about change, go back about 4 or so years on this blog, Newsagencies have been changing for a long time withe guidance and vision from Mark & friends.
Get out of the Industry if you cant change?????????????????????????????????????????????????????????????????????????????????????? its not about change its about belief, belief that Associations have changed and can tackle the big issues.
The association executives have to develop an awareness of when the task (e.g. negotiating with C level execs at publishers) is beyond their skill set and know when to delegate the task to outsourced professionals. That’s not a crticism of them, it’s just a suggestion of a practical approach in order to get a result. THINK BIG.