Magazine Publishers Australia (MPA) has announced the pilot program to trial proposed new magazine supply rules will commence next month. While the ACCC has made no announcement since the conference a month ago, the MPA was granted interim authorisation by the ACCC and ti is this which enables them to proceed.
I am disappointed that despite their claim to want to understand newsagent concerns and to work with newsagents, the MPA has not made any steps to do this other than whatever it does through the ANF, the body all newsagents speaking on this issue at the ACCC disagreed with.
At the heart of the ANF endorsement is their claim for the need of data. As I showed in a video a couple of days ago, newsagents have excellent data on magazine oversupply. For more information on why I think the pilot is inappropriate at this time see this video.
Here is the press release from the MPA announcing the pilot:
MAGAZINE PUBLISHERS AND DISTRIBUTORS PARTNER FOR A NEWSAGENTS PILOT
25TH OF MAY 2015Under the ACCC guidance, Magazine Publishers Australia (MPA) and Magazine Distributors – Gordon & Gotch and Network Services have partnered to conduct a Newsagents pilot in 20 stores.
The 20 stores chosen, which represent a wide variety of newsagents, will start the pilot early June 2015. The aim of the pilot is to create a new efficient supply model for magazines. The pilot stores’ results will help shape a proposed code of conduct for distributors and publishers within the newsagency channel.
Mary Ann Azer, MPA Executive Director said, “This pilot is the first of its kind. It represents a large investment in resources whether time or money to improve magazines in newsagencies. MPA members sell over 50 million copies of magazines to newsagents annually and our aim is support newsagents to become a destination shop. ”
Alf Maccioni, CEO of the Australian Newsagents Federation, the industry body representing 2300 newsagents across Australia, said: “We support any measure that will help newsagents increase their profitability within the magazine category. Magazines supply have been a legacy issue that to date has not been resolved. From this trial we believe that we will be able to obtain some valuable data that the ANF will share amongst its members. We are pleased that all parties have demonstrated a resolve to fix this issue”
All newsagents want is fairness in magazine supply. If they are to be held responsible for their indebtedness to magazine companies they must have the ability to control this level of indebtedness. If they are to be competitive with supermarkets, petrol and convenience, they bust have control facilities which provide this. This pilot program is not trialling any magazine supply rule changes to give newsagents these things.
I note the ANF CEO claiming 2,300 members. Their Communications head says they have 2,000 members. regardless of the number, they have not sought the views of these newsagents before deciding a position on behalf of them.
If all of the essential points raised in the highlighted (bolded) paragraph above do not come to pass, then the elements contained in MPA statement – “large investment in resources whether time or money to improve magazines in newsagencies” will have been wasted. I’m sure the real power behind Bauer will be watching with more than just a passing interest. This has the potential to be a real game-changer. Make no mistake about that.
Turning off the ability to early return will not improve magazines in newsagencies and neither will not allowing Newsagents to control their supply as our competitors are able to.
Going on MPA figures, does that mean we are forced to cope with the expense of processing the deliver of and sending back ~20 – 25 million copies of magazines because of oversupply by MPA members?
Surely that can’t be correct could it?
Increasing the profitability of Newsagents within the magazine category will hugely depend upon the trial getting ‘big red ticks’ on the outcomes of all those highlighted points referred to at the start of this post.
Will it happen?
I think there are more than just the reputations of MPA/Network/ANF people on the line here.
Good luck to all in the months post trial outcomes. Especially Newsagents.
Another reason to tell the associations to “jam it”. Their representation of newsagenst is outdated and irrelevent. I would also go as far to say they are protecting their jobs.
Vaughan I am guessing newsagents invest somewhere between $3 million and $4 million a year in association representation. Even if it is half this. Think about what that money could be put to if retained in the businesses.
Unfortunately not all Newsagents read this blog .
There was an article written in the last National Newsagent by Colin Shipton the ANF manager here in SA regarding a Newsagent here in SA who had health issues . Its a concern for me when any Newsagent is facing difficulty’s.
But what Mr Shipton wrote was more about how great the ANF is and it was really just another PR exercise.
He mention how the “ANF Newspower Ancol” Newsagents had a great meeting ect ect .Well I feel sorry for those Newsagents who are only given the ANFs message, if they were Fully informed by the ANF last year at least those Newsagents would have been able to make their OWN informed decisions and not be lead like sheep by the ANF and co