Three becomes two - concentration of the UK newspaper wholesaler market

A significant development in the wholesale distribution market for newspapers and magazines leaves two major competitors scrapping for the remaining profitable contracts…

Dawson Holdings has exited the wholesale market; its distribution contracts, staff and fixed assets have been snapped up for next to nothing by the two remaining major wholesalers.

The announcement is symptomatic of the underlying weakness in both the national newspaper and magazine market - falling advertising revenues compounded by declining readership leaves the publishers fighting a desperate battle for survival. It looks like there just wasn’t enough profit remaining in the wholesale distribution channel to support a viable third player in the market. I guess that basically leaves a duopoly in this market?