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Major Magazine Wholesaler Wants Millions More in Fees

What You Should Have Read, January 15, 2009

Published on .

Major Magazine Wholesaler Wants Millions More in Fees

The New York Post reports that magazine publishers, already reeling from a slowdown in advertising and circulation, have gotten slapped with word that a major distribution company is about to jack up the rates it charges to deliver issues to retailers. Anderson News earlier this week informed publishers that it would impose a 7-cent charge for each copy of a magazine that it delivers to stores, and warned that any publisher that refuses to pay the fee could no longer count on Anderson to distribute its magazines. It is believed to handle about 25% of the magazine retail traffic in North America. American Media, which is already on the brink of bankruptcy, could be hit with a bill of up to $12 million, the Post reports, while People, which has one of the best sell-through rates in the business, could be hit with up to $15 million in extra charges.
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