Anderson News announced last month it would charge 7c per copy to the publisher for the distribution of magazines and books. Publishers balked and refused to ship the content to Anderson News. Now Anderson News has suspended “Normal Business Activities.” The distributor services 40,000 outlets including 2300 Wal-mart stores.
Most reports speak only about the effect on magazines, particularly weeklies, and not so much on the book distribution aspect. However, one VP said that this is 50% of the distribution market gone.
There are other distributors ready to take up the abandoned market but it will take some time for contractual issues to work itself out.