Here are my initial views on how a magazine czar / gatekeeper – call the position what you will – could work:
Newsagents to acknowledge that their retail network is their asset and that it does not ‘belong’ to magazine distributors to use as they choose. If newsagents don’t believe this there is no point in proceeding. It is essential that newsagents stop operating as process workers and start making business decisions for their businesses.
Newsagents to select a committee of respected, expert, knowledgeable and industry compliant retail newsagents to set magazine KPIs against which the czar will assess net titles seeking to gain access to the channel.
Newsagents each write to magazine distributors advising that they approve the appointment of a czar and ask that prior to any new title being supplied they gain approval of the czar.
The committee selects a czar who is vested with authority by newsagents to approve or not approve all new titles proposed to be sold through newsagencies.
The position should be employed by newsagents using seed funds from magazine distributors and newsagents – each newsagent asked to contribute $50 and each magazine distributor asked to contribute $50,000 for the first year. This provides the czar’s office $690,000 in first year funding.
The czar to seek ACCC input on the structure and processes of enforcing compliance. This may well require elements of collective bargaining and authorisation.
While this needs work, it’s a start. The sooner newsagents take control for circulation product provided to their businesses the better. The current situation provides newsagents with no control. It’s time we started to manage our most crucial asset.
I initially posted this yesterday here as a comment but have posted them here to facilitate broader comment.
Why would distributors pay $50K to do something they already do for free?
C Stephens, CEO and magazineophile
Because if they newsagents are smart it will be the only was to access out real estate asset.
mark Fletcher
Because if they dont then the Czar wont be considering their magazines for distribution….
Only thing Mark is what stops the Czar from becoming corrupt and getting kickbacks from publishers and distributors??
Corruption is a huge risk. This is why we need a committee of newsagents overseeing the function. And every decision needs transparency after the event.
What if distributors baulk at paying $50K and elect to use a different retail channel? Where would that leave newsagents?
C Stephens, CEO and magazineophile
C Stephens,
I think the question you should be asking is where would that leave publishers and distributers? They can not simply create a retail channel. And I assure you that coles and woolworths are not going to take it on.
Why couldn’t distributors use a different retail channel? Why do you only think of Coles and Woolworths?
C Stephens, CEO and magazineophile
Michelle (C Stephens and your other names). Distributors will use whatever channels work for their model. Newsagents have allowed fear to control their business decisions for too long and look at what we have today. The sooner we resist fear and make sound business decisions which respect our real-estate asset the sooner we can break our addiction.
C Stephens,
What other retail channels would you suggest they might look at then?