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News

Replacing the press kiosks threatens press distribution system

The metropolitan press distributors appealed to the commission on economic policy, science and industry of Moscow City Duma in connection with the critical situation created after the publication of the plans of the Department of media and advertising on replacing the newsstands in 2014.Distributors claim that the proposed measures could destroy the media distribution system in the city.

In principle, distributors agree with the idea of replacing stalls on upgraded models. However, they list a lot of "but" due to the new plans of the department.  Firs of all, the kiosks, that now are proposed as alternatives, do not stand the cold test, says Alexander Fedotov, General manager of “Capital Press” Ltd. These are so-called open type French kiosk models. And, for example, during the heavy rains kiosks had completely covered with foil and fold trade. “Replacement of old kiosks with the new ones will be a real blow to our business. The kiosk owner cannot compensate the cost of it’s acquisition even for 10 years, because it is worth 850 thousand roubles”, said Fedotov.

But that’s not all. Outlets now are invited to play in the financial auctions. Even in those cases, when the have signed a long-term leases and when the owners have already undergone the procedure of the competition. “Such auctions will benefit anyone, except the distributors. To the cost of the kiosk one has to add the costs of the auction, which will make 1-2 million roubles. For our two penny business it is a killing sum”, continues Fedotov.

Meanwhile, the authorities propose to expand the number of points of press sale for another 1000 objects (today there are just over 2,5 thousand). Such plans can bring satisfaction. However, the distributors claim, that the implementation of the said plans could be extremely difficult. After all, the third part of the kiosks now are idle because nobody wants to work with them.

Metropolitan press distributors are urging the authorities not to act rashly. First, you need to try the new kiosks in the test mode. Second, the kiosk owners ask for the economical preferences, for example, the right to expand the product range. Fedotov stressed, that otherwise non-professionals will come to business, and the prices of newspapers and magazines will rise at least three times, that might be called “economic censorship”.

The representative of the Department of media and advertising noted yesterday, during the session, that the city must take into account also the economic situation and not only the interests of press distributors. “You do not use them yourselves and do not want to give’em top anyone”,-said the representative of the Department. At the same time, Department of Trade and Services offer the distributors the right to place the advertisement on their kiosks, so to make the business more profitable. While a compromise that could satisfy all parties still failed.