The Australian Financial Review is today reporting that Bauer Media’s Network Services will cease operations:
German media giant Bauer Media is planning to wind up its Australian distribution business Network Services Company in early 2016 with rival distributor Gordon & Gotch to pick up the job.
I doubt that Gotch will pick up the job. I suspect titles they take on will be as a result of negotiation between Gotch and the publishers involved and not Gotch and the Network Services division.
As this is not an acquisition, I don’t see a role for the ACCC.
I have been aware of talk of this move for the last ten days but have not written about it as it was speculation. Even now, details are thin. We need to let the parties involved work through things before jumping to conclusions.
Where theres smoke theres fire surely. Where do other publishers go if Gotch dont ‘get the job’ ? All very intriguing.
Paul disruption of this scale rarely happens in isolation. the change itself will cause other changes as well as causing others to review business models. I think we need to expect considerable change. This is not a time for newsagents to cut back further on magazine support as the last thing the channel wants is a careful what you wish for moment.
Ah! Bauer have made a business decision to cut magazines, sounds familiar!
Shows that anyone can do it.
That has to be the comment of the year Peter B. 🙂
How will this affect the MPA’s position with the ACCC approved trial .
I assume Brauer as a publisher will continue, however if their presence in me market is reduced how much weight will they then have in the decision making.
Bauer will continue as a publisher. Indeed, I expect to see them pursue growth. I don’t see this reported move having any impact on the MPA trial.
As you imply Mark, this could be industry changing to an extent. Opportunity for GGA to be selective in whom they take on, which could be great for newsagents in some ways. I also see an opportunity for IPS as there could be those clients whom have a poor historical relationship with GGA. Lastly if true theres a human element to all this. Anything of this nature generally means job losses and that’s a hard thing to have have hanging over your head, particularly at this time of year. Wish all well with whatever transpires.
Mark, have you any comment on why Network is being wound up rather than sold.