Meredith vows to slash circulation over proposed postal rate hike

Meredith, now the nation’s largest magazine publisher, will slash magazine frequency and circulation levels and close print titles if a proposed 40 percent hike in postal rates over the next five years takes hold, its chief executive Thomas Harty said.

The Postal Regulatory Commission is proposing price hikes from 34 to 41 percent for second-class mail, known as periodicals class.

A vote is expected this spring.

“The proposed increased for the periodical class will require Meredith to pursue magazine closures, circulation cuts, issue frequency reductions, conversions to digital-only formats and alternate delivery for some magazine subscription copies,” Harty said in testimony submitted to the PRC.

Second-class postage, which most magazines and newspapers use when mailing issues, had a reduced rate over first class because the founding fathers thought that newspapers would help bind the fledgling nation together.

But since the United States Postal Service no longer receives government subsidies, it is pushing to make each class of mail operate at a break-even rate — and not rely on other classes to offset the losses.

So while the cost of a first-class stamp went up by a penny recently, the USPS is pushing for a more severe increase for magazines.

Harty said that Meredith spent $322 million to mail its magazines in 2017.

“We conservatively estimate that the PRC’s proposed rate structure will result in a 32 percent reduction in the number of periodical pieces mailed by Meredith (a loss of approximately 310 million pieces annually),” he said.

If the number of periodicals is slashed, the USPS, even with the drastic hikes, will come out a net loser, Harty said.
more at:  https://nypost.com/2018/03/02/meredith-vows-to-slash-circulation-over-proposed-postal-rate-hike/

Related Posts

Costco Wholesale Corporation Reports Fourth Quarter and Fiscal Year 2017 Operating Results and September Sales Results

Net sales for the 17-week fourth quarter were $41.36 billion, an increase of 15.8 percent from $35.73 billion in the 16-week fourth quarter of fiscal 2016. Net sales for the 53-week fiscal year were $126.17 billion, an increase of 8.7 percent from $116.07 billion in the 52-week fiscal year of 2016. The Company today also reported net sales of $12.40 billion for the month of September, the five weeks ended October 1, 2017, an increase of 12.1 percent from $11.06 billion during the similar period last year. Click Read More below for additional detail.

Tilly’s, Inc. Announces First Quarter Operating Results

Fiscal 2022 First Quarter Operating Results Overview *Total net sales were $145.8 million, a decrease of $(17.4) million or (10.7)%, compared to a Company first quarter record of $163.2 million last year. Total comparable net sales, including both physical stores and e-commerce, decreased by (13.0)%. *Gross profit was $43.8 million, or 30.1% of net sales, compared to $54.8 million, or 33.6% of net sales, last year. *Operating income was $1.1 million, or 0.8% of net sales, compared to $14.9 million, or 9.1% of net sales, last year. *Net income was $0.8 million, or $0.03 per diluted share, compared to a Company first quarter record of $11.0 million, or $0.36 per diluted share, last year.

PRC Approves Postal Rate Increase for All Market Dominant Classes

As expected in our most recent postal update in June, the Postal Regulatory Commission (PRC) has approved the postal rate increase that was proposed by the USPS. The PRC spent about a month reviewing the USPS’s proposal before formally announcing its approval on Monday, July 19th. Per the PRC, it confirmed that the planned price adjustments for all market dominant classes, including workshare discounts, are consistent with applicable regulations and applicable Commission directives and orders. The PRC also concluded that the planned classification changes, with some minor revisions described in the PRC Order, are consistent with applicable law. The new postal rates will become effective August 29th, and our analysis of numerous postage estimates shows that postage increases for Marketing Mail to be averaging about 8.6% for Flats and 6.6% for Letters. Mailings with in-home dates up to September 13th will pay current postage rates, with postage being paid on August 27th. This postal rate increase is unprecedented, with the PRC sanctioning and approving the USPS to increase rates higher than the 12-month rolling consumer price index (CPI). In effect, these rates will be about 4 times higher than the current CPI and are contrary to the rate increase guidelines laid out in the 2006 Postal Accountability and Enhancement Act.
Back To Top
×Close search
Search