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Shutdown by Wholesalers Would, Short Term, Be Devastating
Tuesday, February 3, 2009
Steve Cohn

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Press accounts Tuesday (Feb. 3) had Anderson News and Source Interlink closing their magazine wholesale business because major group publishers—led by Time Inc.—would not accept a 7 cents per copy price increase. If it does happen, publishers would have to bite the bullet for a few weeks until rival wholesalers Hudson News and News Group expand their regional operations nationwide. Neither of the latter two is raising prices.
 
A worst-case scenario could have People's 1.5 million newsstand average cut to 1 million. And Sports Illustrated, with its 2009 Swimsuit issue breaking on Feb. 10, could be hit hard. An estimated 1.5 million of Swimsuit's 4.5 million rate base is newsstand (regular SI editions are relatively newsstand-minuscule), but we are told that is almost certain SI executives have distribution "contingencies."

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

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