The Australian Competition and Consumer Commission has authorised the Association of Magazine Publishers of Australia (MPA) to run a pilot magazine distribution program over 3-6 months with the 40 newsagents that have agreed to participate. This program will test the effectiveness of a proposed approach to address longstanding problems with the oversupply of magazines to newsagents.
The pilot program will involve an agreement between publisher members of the MPA, and distributors Gordon & Gotch, and Network Services, to limit the supply of magazines to newsagents participating in the pilot in a number of ways, including minimum sales efficiencies, ceasing to distribute titles after an agreed number of consecutive nil sales, reducing requirements for full copy returns, and limiting redistributions.
“This pilot will help to establish whether or not the proposed limitations on distribution are effective in addressing the oversupply problem,” ACCC Deputy Chair Dr Michael Schaper said.
An independent report will be prepared for the MPA analysing the results of the pilot. The MPA will provide a copy of this report to the ACCC to be placed on its website.