British mags propose to help small newsstand operators

The U.K. magazine distribution system is quite different from Canada's. For one thing, 85-90% of magazines are bought as single copies at newsttands and from corner newsagents (often on a "standing order" where the newsagent sets aside the magazines for pickup).

However, smaller newsagents are threatened by large supermarket chains, with huge newsstands. A new proposal has been put forward by Lord Heseltine, a former MP and cabinet minister, owner of Haymarket Publishing and the chair of a group of publishers fighting the Office of Fair Trading's own proposal to open up magazine distribution to more competition. (The OFT has apparently reversed course on this.)

Heseltine's group is suggesting that the industry should provide financial support in the form of an "administrative levy" to help smaller shops sell more of their magazines. It is reportedly backed by the Periodical Publishers' Association (the British equivalent of Magazines Canada).

In The Guardian on Monday, Heseltine said: "I was appalled by how bad the relationship was between publishers and newsagents. It didn't make any sense for the producers not to see eye-to-eye with the front end. Nobody benefits from inefficient distribution, least of all publishers."

The industry is reportedly considering spending £1m a year on distribution, a similar figure to that currently spent by newspaper publishers, or setting up an ombudsman to deal with complaints from retailers about distribution.

The British situation has resonance in Canada, where smaller newsstands suffer in the face of large chain bookstores and food stores. The common cause between independent Canadian magazines (of which there are almost 1,000 titles) and independent frontline sellers should be obvious. Whether an "equalization" scheme like Heseltine is suggesting would (or should) work here, who knows?