V European Press Distribution Round Table Hamburg, 28 September 2010

FANDE Presentation (SPAIN)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

AGENDA

Main news in the spanish press market

Services that the distributor charges to the publisher

Info interchange between Publishers, Distributors and Selling Points

The digital frame

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

News about the spanish market

Publishers

National Distributors

100 Local Distributors

25.284 Selling Points

Data and statistics (FANDE XV Profile Study)

PRESS DISTRIBUTION (Total Turnover)2005: 1.853 million euros2009: 1.596 million euros

News about the spanish market

MAGAZINES - National distributors

Two levels of distribution: National and Local distributors.

National Distributors: Services to publishers (nationals and foreigners) distribution all over Spain: COEDIS, GDEr, DISPAÑA, LOGINTEGRAL, LOGISTA and SGEL.

Also publishers with distribution department: GPS (G+J / Motorpress), TOYMER, HOLA, SEMANA and PANINI

News about the spanish market

NEWSPAPERS – Publishers are the national distributors

90 dailies: 7 national, 76 regional, 4 sport, 4 business.

National daily newspapers: ABC (Vocento), El Mundo (Unidad Editorial), El País (Prisa), El Periódico (Zeta), Público (Mediapro), La Razón (Planeta) and La Vanguardia (Godó).

Daily sports: As (Prisa) and Marca (Unidad Editorial) from Madrid, Sport (Zeta), and Mundo Deportivo (Godó) from Barcelona.

National distribution directly from the distribution department of each publisher to local distributors.

News about the spanish market

Local distributors

LOCAL DISTRIBUTORS (100): deliver the publications they receive from their suppliers (national dist. or publishers directly) to the retail.

The local distributors work in set territories on an exclusivity basis for the publications they distribute (COMPETITION)

Three groups: Independent distributors (15) Local delegations of national distributors (45) (Logista + Sgel) Distributors owned by the major newspaper

groups (40) (Joint Venture by Prisa + Unidad Editorial + Vocento + Regional press groups)

INDEPENDENTS

Barcelona

Tarragona

Girona

Ciudad Real

Zaragoza

Huesca

Teruel

Valencia

Castellón

Alicante

MurciaSev illa

Cádiz

Huelva

Málaga

Oviedo

Burgos

BilbaoS antander

NavarraVitoria

Guadalajara

Madrid

Logroño

Ceuta

Las Palmas

Fuerteventura

Lanzarote

Pontevedra

L a Coruña

Lugo

Ll eida

Le ón

O rense

Pa lencia

Za mora

Se govia

Valladolid

Áv ila

Salamanca

C á ceres T oledo

B adajoz

C órdoba Ja én

GranadaA l mería

Al bacete

C uenca

Ib iza

Formentera

Pa lma Mallorca

Me norca

T e nerifeG omera

H ierro

La Palma

Soria

Ponferrada

Manresa

Andorra

San Sebastián

Melilla

LOGISTA PUBLICACIONES

Barcelona

Tarragona

Girona

Ciudad Real

Zaragoza

Huesca

Teruel

Valencia

Castellón

Alicante

MurciaSevilla

Cádiz

Huelva

Málaga

Oviedo

Burgos

BilbaoSantander

NavarraVitoria

Guadalajara

Madrid

Logroño

Ceuta

Las Palmas

Fuerteventura

Lanzarote

Pontevedra

La CoruñaLugo

Lleida

León

Orense

Palencia

Zamora

Segovia

Valladolid

Ávila

Salamanca

Cáceres Toledo

Badajoz

Córdoba Jaén

GranadaAlmería

Albacete

Cuenca

Ibiza

Formentera

Palma Mallorca

Menorca

TenerifeGomera

Hierro

La Palma

Soria

Ponferrada

Manresa

Andorra

San Sebastián

Melilla

SGEL

Barcelona

Tarragona

Girona

Ciudad Real

Zaragoza

Huesca

Teruel

Valencia

Castellón

Alicante

MurciaSevilla

Cádiz

Huelva

Málaga

Oviedo

Burgos

BilbaoSantander

NavarraVitoria

Guadalajara

Madrid

Logroño

Ceuta

Las Palmas

Fuerteventura

Lanzarote

Pontevedra

La Coruña

Lugo

Lleida

León

Orense

Palencia

Zamora

Segovia

Valladolid

Ávila

Salamanca

Cáceres Toledo

Badajoz

Córdoba Jaén

GranadaAlmería

Albacete

Cuenca

Ibiza

Formentera

Palma Mallorca

Menorca

Tenerife

Gomera

Hierro

La Palma

Soria

Ponferrada

Manresa

Andorra

San Sebastián

Melilla

GDEr (newspapers groups)

Barcelona

Tarragona

Girona

Ciudad Real

Zaragoza

Huesca

Teruel

Valencia

Castellón

Alicante

MurciaSevilla

Cádiz

Huelva

Málaga

Oviedo

Burgos

BilbaoSantander

NavarraVitoria

Guadalajara

Madrid

Logroño

CeutaLas Palmas

Fuerteventura

Lanzarote

Pontevedra

La Coruña

Lugo

Lleida

León

Orense

Palencia

Zamora

Segovia

Valladolid

Ávila

Salamanca

Cáceres Toledo

Badajoz

Córdoba Jaén

GranadaAlmería

Albacete

Cuenca

Ibiza

Formentera

Palma Mallorca

Menorca

Tenerife

Gomera

Hierro

La Palma

Soria

Ponferrada

Manresa

Andorra

San Sebastián

Melilla

The selling points situation

25.284 press selling points in Spain (May 2010)

Influence very limited of newsstand chains and supermarkets.

Hard decrease (-20% / 1998: around 32.000)

Tobacco law (2007) banning the sale of tobacco in press selling points: Only kiosk authorized

Approval in 2010 for the sale of tobacco in all the press outlets

AGENDA

Publishers movements regarding the press distribution structure

Services that the distributor charges to the publisher Info interchange between Publishers, Distributors and Selling Points

The digital frame

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

Charges from the distributor to the publisher

The return cost

FANDE and the Magazines Publishers Association (ARI) proposed a general recommendations about the magazine distribution.

One of the main points treated was the maximun level of unsold returns (65% in 2009 – 60% in 2010): Publisher have to pay to the distributor for each copy that excess this level.

Certified Copies: 0,09 euros (0,03 ND + 0,06 LD) Copies with clasification: 0,16 euros (0,05 ND + 0,11 LD)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

Charges from the distributor to the publisher

Charges from the distributor to the publisher

The newspapers promotions

There is an agreement between the local distributors association (ANDP) and the national newspapers publishers (El País, El Mundo, Abc…) for the management of newspapers promotions (charge from the local distributor to the

publisher)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

Charges from the distributor to the publisher

The magazine promotions

During 2010 we worked in an agreement between the local distributors association (ANDP) and the national distributors association (UDNE) for the management of magazine promotions (3 MODELS):

1. Promo with retail price: No charge, except promo price below 1 euro2. Free promo: Promotion is valued at 1 euro and applies % of each agent3. Free promo joined to the magazine: No charge.

Additional charges if the promotion involves the control of cards (0,03 euros) or coupons (0,072 euros)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

AGENDA

Publishers movements regarding the press distribution structure

Services that the distributor charges to the publisher Info interchange between Publishers, Distributors and Selling Points

The digital frame

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

FANDITE (EDI System)

Developed by FANDE from 1995

168 users (100% of main newspapers and magazine publishers & distributors)

Publishers: 16National and local distributors:122

Kiosks: 86 (testing the service with one document – ALBARÁN: served publication information sent by the distributor to the selling point)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

FANDITE (

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

37 different standardized documents (all the commercial movements between provider and distributor) “Peer to peer” communication (not centralized control)

Technical support by FANDE (New documents, new users identification, hot line…)

New tech projects (XML, e-invoice…)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

FANDITE (EDI System)

AGENDA

Publishers movements regarding the press distribution structure

Services that the distributor charges to the publisher Info interchange between Publishers, Distributors and Selling Points

The digital frame

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J

The digital frame

The main spanish newspapers began to develop digital version of the traditional product.

Perhaps the most important initiative is that of El Mundo (the second spanish newspaper by number of copies sold after El País): Service called Orbyt digital newspaper, with a fine adaptation to the iPad.

The problem, as worldwide, is the money return from these initiatives (advertising revenue + fee for use).

Orbyt: 14,99 euros mothly Released in early May 2010 Number of subscribers in July 2010: 11.700

V European Press Distribution Round Table Distripress Congress

Hamburg, 28 September 2010

THANK YOU VERY MUCH

José Manuel Anta (Managing Director of FANDE)

“The spanish press distribution sector: Data an”

International Press Distribution ConferenceMoscow, 30 May 2008

J