Alternate delivery under scrutiny - alternative to postal service for magazine distribution - Brief Article

Folio: The Magazine for Magazine Management, Nov 15, 1994

With postage rate hikes now a reality, publishing companies with large second-class postage bills might logically be more interested in alternate delivery. Instead, they're taking a new look at its viability. In September, Hearst Magazines pulled back on its alternate delivery service with Alternate Postal Delivery Inc.

and Publishers Express. Lindsay Valk, vp-circulation for Hearst, admits that Hearst has made a one-time retreat from alternate delivery and is analyzing customer service, reactions and behavior, which includes renewals and pay-up. Valk says Hearst is committed to AD for the long run, but perhaps expanded too rapidly. Now two others--Gruner Jahr USA and Times Mirror Magazines--are questioning the wisdom of AD. Times Mirror, after hearing about Hearst's decision, is analyzing renewal data from its magazines alternately delivered. John Dillon, group circulation director for G J, says he's looking into customer service, renewals and pay-up for the magazines recently acquired from The New York Times Company. He also hints at pressure from readers to return to the Postal Service. "You have some 700,000 postal workers out there, and if they each have a family of three, that's 2.1 million people, some organized, who feel threatened," he says. "There have been some letters, with the tone, 'If you don't use the Postal Service, why should I subscribe?'" What happened to pressuring the Postal Service by using alternate delivery? Distribution consultant Russ Shores comments, "It has significantly less leverage than it had before, especially with Hearst pulling back. When the USPS heard that, they were elated."