Media Insider: Magazine publishers take on NZ Post over huge increase in delivery costs, call on Commerce Commission to step in
Magazine publishers want a market study into NZ Post delivery charges for its titles. Photo / File
Magazine industry warns further cuts and consolidation of titles “inevitable” unless NZ Post costs are pulled into line.
NZ Post is under fire for the prices it’s charging to deliver magazines, with concerns that some titles could face closure or consolidation.
The Magazine Publishers Association and PrintNZ want the Commerce Commission to conduct a market study into postal services pricing.
The industry organisations say they have endured “a decade of extraordinary price increases” from NZ Post’s Publication Post service – the bulk mail product used by magazine publishers, charities, membership organisations and other regular mailers to reach subscribers and members nationwide.
“The cost of mailing a magazine (depending on weight) has risen from 63 cents in 2014 to $3.68+GST from 1 July 2026, an increase of 584% over 12 years,” the MPA and PrintNZ said in a statement.
“Over the same period, cumulative consumer price inflation was approximately 33%. In the past five years alone, Publication Post rates have more than tripled, with annual increases averaging 28%.”
MPA chairman Stuart Dick said these were not normal prices.
“They are multiples of inflation, compounding year after year, imposed by a monopoly provider with no regulatory oversight of its pricing.
“No other essential infrastructure service in New Zealand operates without independent price scrutiny. Gas, electricity, [and] broadband all have some level of oversight or controls. Postal services should too.”
Dick said the impact of unchecked price rises fell hardest on provincial and rural New Zealand.
“NZ Post’s zonal pricing structure charges the highest rates for delivery to the areas with the least competition. Magazines, newsletters and membership publications that serve rural audiences – often the only source of in-depth, specialist reporting on primary industries, conservation and regional issues – are being priced out.
“Several titles have already closed or reduced print frequency, and the MPA warns that further consolidation is inevitable without intervention.
“The consequences extend beyond the publishing industry: fewer titles means fewer voices and the erosion of more analytical forms of journalism that magazines provide as a counterweight to the daily news cycle.”
It has sent a formal submission to the Commerce Commission, requesting a market study.
NZ Post mail general manager Matt Geor acknowledged the cost pressures and “the important role magazines and specialist publications play in New Zealand communities”.
“NZ Post is committed to continuing to provide a commercially sustainable mail service for New Zealanders, and we will continue to deliver mail as long as Kiwis are sending it.”
However, the way New Zealanders were communicating had changed “significantly”.
“Mail volumes continue to decline as communication shifts to digital channels and are now around one-tenth of their peak levels in the early 2000s.
“To put this in perspective, New Zealand addresses currently receive less than two letters each per week, compared to 7.5 in 2013 and around 20 items in the early 2000s. With a largely fixed-cost national network, this significantly increases the cost to deliver each mail item.”
He said NZ Post had worked hard to limit price increases through “efficiency gains and network changes”.
“However, there are practical limits to the cost reduction this can achieve without affecting service levels. More recently, NZ Post has had to lift prices to better reflect costs and maintain a reliable and sustainable nationwide mail service.
“While comparisons to inflation are understandable, postal pricing is influenced primarily by the volume decline, with the inflationary pressures adding to the challenge.
“We do not believe that a market study would be useful in this context.
We are always happy to work with customers to explore options when we increase our prices and encourage customers to speak with us directly.”
A Commerce Commission spokeswoman told Media Insider that market studies could be self-initiated by the commission or the Commerce and Consumer Affairs Minister.
“Such decisions are discussed with the minister and the Ministry for Business, Innovation and Employment. No decisions have been made about possible future topics of study.
“We continue to gather information to better understand potential competition issues arising in markets, to inform our views on potential market study candidates.
“We welcome information from people on the competition issues in markets they think we should or could undertake a study into.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.