Through my newsagency software company Tower Systems I’ve been involved in newspaper distribution restructuring for several years from before the migration project in South Australia to a range of newsagent-led distribution changes in Victoria and elsewhere. Click here to see a brief document going to Queensland newsagents to open discussion about structuring for change. While it’s a promotional pitch it does touch on challenges and opportunities for newsagents.
I see the distribution changes as changes newsagents need to drive. There is nothing stopping newsagents consolidating into more commercial distribution businesses today. This is what some leaders in Victoria have done. here’s the opening text from the distribution document I have put together:
There is no doubt that newspaper distribution is undergoing extraordinary change. This will affect every newsagent, retail and distribution.
The changes are being brought about by falling print newspaper sales due to customers migrating to devices such as the iPad and iPhone and news being accessible from more outlets and not just publishing companies.
Newspaper publishers will protect the return they achieve from their print product by cutting costs and / or increasing margin through cover price and newsagent margin changes. One way they are cutting costs is reducing the number of newsagents they deal with.
Newsagents face business-defining decisions through this period of structural change.
In 2005 I knew I had to either expand my newspaper home delivery business or get out. I created a model which I grandly called Circulation Fulfillment Australia and sought to work with nearby newsagents to bring this to life. With no takers I subsequently sold my distribution business and shelved the idea.
You can access a copy of the 2005 plan here.
Newsagents who wait to be told what to do will be left behind. Now is the time to act – on your own terms and serving your goals.
Excellent insights. Mark once again you beat the association. I like how straightforward you say it.
Thanks Jeff. The challenge for the associations is that they feel the need to keep the publishers on side. I hope the information I have published is helpful.
Mark, to re-inforce this issue i have repeated below your comment about newsagents driving change. Those newsagents who are not talking to their neighbours risk a lot. I do wonder whether an opportunity exists for VANA to facilitate a meeting of neighbours to help them get their mind around the issue.
“I see the distribution changes as changes newsagents need to drive. There is nothing stopping newsagents consolidating into more commercial distribution businesses today. This is what some leaders in Victoria have done. “
Craig newsagents in Victoria are leading on this. Some well resourced and run commercial groups have been consolidating runs for at least the last five years. They provide an excellent model for others.