A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Mustang titles symtomatic the flawed magazine supply model

mustang.JPG Here are four of the Mustang titles we carry in my newsagency. Each takes a pocket of real-estate. Each has a sell through rate of 50% or less, some at 25% and even 0%. None is cash-flow positive. The performance of these titles is worse this year compared to last. Last year was worse than the year before. Through the course of a year I get more Mustang titles than these four. Consumer interest in Mustang titles is over satisfied based on what I, and I suspect other newsagents, receive. Given that there are three magazine distributors and no one taking a whole of market view of consumer satisfaction the Mustang and other fringe categories the problem will not be rectified. Newsagents carry the financial burden of this.

Car magazine sales are in decline. Newsagents would not know this based on the range and volume of titles they bare supplied. Magazine distributors have an obligation to adjust their supply model to reflect changing consumer interest. They also have an obligation, to work together to balance categories. While this would mean collusion, the alternative is what we see today and competition between distributors with each bringing in magazine titles of dubious value to newsagents. As long as magazine distributors profit from distribution rather than sales this problem will exist and newsagents will be the losers.

The more space taken on my shelves by oversupply in categories like car magazines and, specifically, mustangs, the less space (and time) I have for the main magazine game, the top 200 titles.

0 likes
magazines

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image