News Limited kicked off a project a couple of years ago around the future of newspaper sales and distribution. They presented newsagents with three options: do nothing, consolidate or specialise. News Limited senior management made it clear that do nothing was NOT an option.
Yesterday, News Limited told newsagents that it was going to do nothing. The promised new newspaper distribution contracts are not coming.
Newsagents have been stressed through the process since the knowledge of a decision by News about such a key part of their business made newsagencies difficult to sell and difficult to access funds for. Any bank manger will confirm this.
I would go further and note that the earlier decision by News Limited to force changes around newspapers has been a key factor in the considerable decline in the sale of newsagencies over the last two years.
Newsagents were dealt a blow yesterday when the company advised that it is not ready to provide newsagents with the contractual certainty which it had said it would provide. News Limited has opted to do nothing … leaving newsagents with a longer period of uncertainty. Promised new contracts are not coming. News is not saying how long for … things could not be more uncertain.
the VANA blog has more details on the meeting with News Limited yesterday.
This inaction by News Limited means that finance will be harder to obtain for newsagency businesses, newsagencies, especially those with a distribution component, will be harder to sell and capital investment in the distribution side more challenging to complete.
News limited created the uncertainty and the cost to newsagents by launching their review. They are continuing it by their inaction. This is not socially responsible nor is it ethical.
Newsagents have very right to be angry.