Asda and News International reached an agreement that saw copies of the Sunday Times return to the supermarket's shelves at the weekend.
The previous Sunday there were no papers available in Asda's 370 stores after News Int reduced the margin following a price rise to £2.20.
Previously, the retailer picked up 25% of the cover price, which would have meant an extra 5p per copy. But News Int decided to reduce the margin to 23.5%, giving Asda just 1.7p per copy.
Asda thought this unacceptable. But matters were resolved at a meeting last week in which the two companies sealed "a commercial arrangement".
I understand that the margin will remain the same, but it was agreed that Asda should benefit from an unspecified "contra deal" that involves advertising space. Asda is a big advertiser with News Int.
It means that News Int was able to maintain its stance that all retailers - from the largest supermarket chains to the smallest newsagents - will receive the same margin.
But will other supermarkets - such as Waitrose, Tesco, Sainsbury's and Morrisons - now seek similar commercial deals with News Int?
If so, reducing that retail margin - which I wholly support - may come at a heavy price.
Hat tip: Media Week
