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Source Interlink, AMI Settle Distribution Flap

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Wholesaler giant Source Interlink Cos. has settled its claims against another magazine company, tabloid publisher American Media Inc., along with its distributor, Distribution Services Inc.
 
Source had sued a host of publishers and distributors over their refusal to ship copies to Source rather than meet the wholesaler’s demand for an extra distribution fee. After Time Inc. settled with Source earlier this month, other defendants, which include Bauer Publishing and Hachette Filipacchi Media, were expected to follow suit.
 
The settlements pave the way for restoration of the nation’s magazine newsstand delivery operations, which were thrown off track after several publishers refused to go along with higher fee demands from Source and Anderson News.
 
Together, the wholesalers represented some 50 percent of the nation’s retail newsstand sales. Anderson has since shut down and its retail magazine delivery business divvied up between Source and The News Group.
 
“We will now be able to restore the full line of AMI product to magazine racks across America,” Greg Mays, chairman and CEO of Source, said in a statement announcing the accord with AMI, parent of Star, National Enquirer, Shape and other titles. “We are happy to have concluded this legal process through an amicable settlement that ensures Source can continue to supply all our mainstream and specialty distribution clients with these popular titles.”