Source Interlink, one of the biggest magazine distributors in the US announced Friday that it will soon end “substantially all” of its business operations, putting 6,000 out of work. The Wall Street Journal report documents some challenges for the category:
Companies such as Source Interlink play a major role in the magazine business, arranging for printed magazines to be distributed to retailers large and small. It has become a more difficult part of the business in recent years, as consumers increasingly use the Web to read digital content, including magazines. That shift has upended the economics of newsstand distribution.
While this story has no direct Australian connection, the challenges and economics are not dissimilar.