MagNet reports that U.S. magazine newsstand sales fell 27% in third quarter of the year
Sharp decline follows exit from business by Source Interlink, though industry has by now adjusted to loss of distributor
The next batch of magazine audits are due soon enough, and despite the happy face many in the industry are trying to put on things, it is assumed that many titles will be hit hard by falling newsstand sales.
The latest report from MagNet confirms the fall, with the company reporting that newsstand sales fell 26.8 percent in unit sales, and just shy of 20 percent in dollars in the Q3 of 2014.
Source Interlink’s exit from the magazine distribution business meant that many titles had to scramble. Most have completed that adjustment, but newsstand sales were falling before this due to the declining number of newsstands, in general. Unit sales were down over 10 percent in both the first and second quarter, but the third quarter saw unit sales at 102.56 million in 2014, version 140.18 million a year ago.
“During July, between 30 and 60 days after Source closed its doors, nearly 90 percent of the previously Source serviced stores were either receiving deliveries or were in the process of being delivered,” the MagNet report said.
“In October, five months after the disruption, 99% of the stores were back on service. There are still, in a few cases, logistical problems that some wholesalers are experiencing, as they work to develop infrastructure and improve deliveries to areas far removed from their distribution facilities. We also note through our analyses that, in some cases, title quantities going to different wholesalers could be improved. However, the industry should be commended for getting so many retailer accounts back in service as quickly as it did.”