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News

What is a valid price for press?

Disputes about a valid retail price for newspapers and magazines between publishers and press distributors have conducted since the market foundation.

Publishers insist on a minimum price – every Russian citizen should be able to buy the publication he likes with no doubts about its price. Moreover the publishers adhere to advertising business model: their  revenues are made up of the circulation sales and profit received from advertising.

Distributors are on the other side. They believe that printed media can and should be more expensive: cheap press does not allow sellers to cover its costs in the current economic situation.

Who is right? Each side has its own well-founded arguments, which were presented on the XIII PDA International Conference in Turkey. Sergey Gavrilov, the ARPI "Siberia" CEO, is sure, that there is a potential for printed media retail prices growth. And it is important to use it. Roman Doroshenko, the "Burda Distribution Services" General Director, in his turn says, “The prices for press in the country are already too high relating to average wages. This situation only hampers the Russian publishing market development.

Source: PlanetaSMI.ru