Thursday, February 19, 2009

Source Interlink Expands!

The anti-trust suit that Source Interlink bought against Time and several other publishers two weeks ago has been dropped - although the press release only refers to Time. Readers may recall that SI received a preliminary injunction that forced SI's existing customers to continue shipping product to them. According to the press release the company's used the strength of their long standing relationship to reach an agreement on a multi-year contract. No comment about whether SI has been successful in imposing any additional fee on Time Warner as part of this agreement. Speculation would be that if they have it will not be as high per unit ($0.07 per copy)and it will not kick in immediately. If this improves the magazine supply chain at all it will be a good thing.

From their press release:
"I am happy to make this announcement because it means the continuation of what has been a mutually beneficial relationship. We have enjoyed working with our partners at Time and plan to keep working with them for many years to come," declared Greg Mays, Chairman and CEO of Source. "This agreement is effective immediately and assures that we can continue to supply all our mainstream, specialty and international customers with the popular Time titles."
In addition (and hence the post title) SI appears to have picked up a number of important distribution clients out of the rubble that was Anderson News' magazine distribution business. From the press release:
In a separate story, Source Interlink Companies today reported that its magazine distribution unit, Source Interlink Distribution (SID), has been awarded important new business from Wal-Mart Stores, Kroger / Fry's Companies and Basha's Supermarkets. This additional business increases SID's store count by 662 stores in 9 states.

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