Corporate Subscription Sales - National Newspapers

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Corporate Subscription Sales

Copies purchased on a contractual basis by an employer for its employees.

Principles

1. There must be a contractual arrangement between the purchaser (a third party employer) and the publisher (or their agent)

2. Copies are purchased by the third party employer for its employees

3. The copies are distributed to the same fixed pool of employees on an on-going basis

4. Claimed quantity should not exceed potential demand

5. For a contracted period and for a minimum number of issues (at least two)

6. The price paid for the publication by the purchaser must be clear and conspicuous

Requirements

1. There must be a contractual arrangement between the purchaser (a third party employer) and the publisher (or their agent)

1. You must be able to provide evidence of the contractual arrangements between the purchaser and the publisher, including the issues/period, the quantities to be supplied and the price.

2. You must be able to demonstrate the distribution of copies is designed to ensure copies are solely available to employees. For example: Copies placed in a foyer of a bank will not be allowed as customers of the bank will have access to the publication.

2. Copies are purchased by the third party employer for its employees

1. You can claim copies where payment is outstanding as long as there are reasonable grounds to consider them to be live, good and collectable.

Guidance Available

3. The copies are distributed to the same fixed pool of employees on an on-going basis

1. Whilst details of the final recipients need not be known you must be able to demonstrate the copies are distributed to the same fixed pool of employees.For example: Copies distributed to a particular department or company who are reasonably expected to be present at the same delivery location on an on-going basis.

Guidance Available

4. Claimed quantity should not exceed potential demand

1. The quantity claimed cannot exceed 50% of the number of employees for any employer location. Evidence of the number of employees for each location should be no more than a year old.

5. For a contracted period and for a minimum number of issues (at least two)

1. You cannot claim sales of back issues.

6. The price paid for the publication by the purchaser must be clear and conspicuous

1. The purchaser must pay at least the retail margin per copy.

2. To determine if the retail margin per copy has been paid:

   1. Ignore the value (or perceived value) of any gifts or other incentives (including bundled publications or media products that are not claimed for ABC purposes).

   2. If a subscription promotion includes a gift is or product that is being claimed for ABC purposes (for example a bundled copy of a publication or access to a paid website) then the price paid must be allocated according to the following, moving down the list until one can be applied:

      • According to the specific terms of the offer.

      • Where specific terms are not clear, by pro-rating the price according to the relative prices of the ABC claimed products.

      • Where the specific terms are not clear and in the absence of a means of pro-rating the price paid, it should be divided equally between the number of ABC claimed products included in the sale.

3. You must take into account:

   1. Any reciprocal payments made by the publisher

   2. Any reciprocal charges for goods or services made by the purchaser (or the intermediary if applicable) as part of the deal (for example: for distribution or marketing).

   3. The value of any other goods or services provided free or discounted by the publisher (for example advertising or promotional messages).

Reporting

You will report Corporate Subscription sales as follows, which will be broken out on the ABC Certificate:

1. By geographical type:

1. United Kingdom

2. Scotland - as a subset of UK

3. England, Wales & N. Ireland – as a subset of UK

4. Republic of Ireland (ROI)

2. By total average circulation over the period.

Guidance

G2. Copies are purchased by the third party employer for its employees

1. Where payment is outstanding you may take into account the following in considering whether the debt is live, good and collectable:

   1. Publisher’s normal credit terms

   2. Payment history

   3. Credit control efforts

G3. The copies are distributed to the same fixed pool of employees on an on-going basis

1. This will typically require:

   1. Evidence the copies have been distributed to the employer’s location from a third party company whose normal business is distribution

   2. Details of how the copies are distributed at the employer’s location

   3. The details of a person at the employer who can verify how the copies are distributed.