Magazine Publishers Attack Mailing Rate Increase

The Periodical Publishers Association (PPA) has spoken out against plans by Royal Mail to increase magazine mailing rates by 5% from 26 April. The increase in rates could hurt the UK’s magazine subscriptions industry. PPA chief executive, Ian Locks, says that publishers would be disappointed at the rise in rates, especially when set against a cut of 1p in second class postage.

For the last year, the PPA has been working with Royal Mail to create a new methodology for the pricing of Presstream – the magazine mailing service. “Throughout these discussions Royal Mail has repeatedly asserted that basic rates would continue to decline and that no changes need be expected before November. Costs predictions for the coming year have been based on these assertions and therefore this increase will leave publishers even more shocked and disappointed,” says Locks. He goes on to say that many publishers will question the value of working with Royal Mail in the future.

In the UK approximately a quarter of business and professional magazines are sold through subscriptions. However, subscriptions sales are still relatively underdeveloped in the UK and Ireland, accounting for only around 11% of average issue sales. The biggest seller through subscription is currently Reader’s Digest. The Which? magazines also sell a lot of copies this way.

Various subscription initiatives being undertaken by publishers are likely to enhance future levels, according to the PPA, with the aim of achieving some of the success witnessed in other countries. In the US, 82 per cent of magazine copies are sold by subscription. In Germany the figure is 42 per cent, with 77 per cent of business and professional magazines sold through subscriptions.

PPA: 0171 404 4166