• New York Post, Thursday, January 22, 2009 9:30 AM

Source Interlink is joining Anderson News in demanding publishers pay an additional 7 cents for each copy of a magazine that it delivers to retailers, regardless of the actual number of copies sold by those retailers.

Anderson News, which controls 25% of the market, told magazine publishers last week that it would exit the business if they refused to pay the new fee. Publishers had hoped if they declined to pay, it might force Anderson to retreat on the fee.

But Source Interlink dropped its bombshell this week, informing publishers that it, too, would begin demanding a similar fee starting Feb. 1. Source Interlink and Anderson News together are believed to control more than half the nation's magazine wholesale distribution to retailers. The remaining big distributors have not sought a fee hike.

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