Local libraries often claim to play an important community role. That role has expanded to hurting local small businesses that used to supply them. Revenue that would have remained in the community now hits the overseas bank account of Zinio.
A deal between Zinio and state run libraries, like the Zinio deal with Libraries of South Australia, sees digital versions of more than 400 magazines available through local libraries across Australia.
Many local libraries used to purchase magazines from local newsagents. That revenue is now lost to the local community.
The Zinio move reaches beyond the four walls of the local library though. Whereas magazines newsagents would sell to a library remained in the library, some libraries offer Zinio platform access outside the library. People can use their library number from anywhere and access Zinio magazines. The reach of the Zinio / library relationship can go way beyond magazines newsagents might have sold to a library.
I understand the move to digital from print. There is no stopping it. Indeed, the pace of change will increase in my opinion.
I understand the need for a statewide deal that makes magazines available at a low cost. This is a result of cost-cutting at all levels of government.
The community needs to understand the consequences of Zinio access through the local library.
Newsagents are among the most hit-up businesses by local community groups for funding, prizes for raffles and the like. The capacity of the locally owned small business newsagency is diminished by moves like we have seen by libraries.
Newsagents can confront the Zinio / library challenge by educating people about it. Explain the loss of revenue and the need for this to be replaced somehow for the business to continue its level of giving. However, such an approach could come across as weak.
For me, the best response is to be relevant in new product categories, outside of what has been traditional for newsagents. Focus your frustration at a Zinio / library tie-up in your area into changes in your business. Look away from this problem toward opportunities you can leverage for a brighter future.
No amount of complaining will make the issue go away so move on and look over the horizon.
Mark,
For the last 5 years we have been supplying a local Council with magazines (last years sales $18,800).
They have asked us to re tender for the next three years.
Previously we have given 15% discount off retail. They now want at least 20% plus.
Our tender document (based on costs) offered 10% of cover price.
They have advised will be using a subscription service that will allow up to 31% of cover price and NO postage costs.
Just how is local business supposed to compete when we can’t even BUY the mag at 31% of retail.
Someone somewhere is making a lot of $$ from mags and its not the Newsagent!
We are looking at Magazines (again) and may decide to close our $200,000 PA account with G&G.
John thank you for sharing these numbers. They put into context the issue here. Governments, federal, state and local, need to understand the consequences of cost cutting on local community support, jobs and the viability of local businesses including publishers.
On the other side, the model today is content demands being accessible from digital platforms. So there is that.
None of us can run our businesses with any expectation of traffic and / or revenue from print.