New Zealand Post to sell digital subscription service to US company

The New Zealand Postal Service will sell its digital subscription to US-based company Embossed, the government announced Wednesday.

The announcement follows a deal announced earlier this month to buy a third of Embossable for $1.5 billion.

The company will also be renamed Postmedia.

The new agreement will allow Postmedia to offer its digital subscriptions for less than $1 per month and is expected to result in an increase in revenue of up to 50 per cent, with the average monthly cost of a subscription at about $0.40.

Postmedia CEO Andrew Smith said the deal with Emboss is a strategic move in the company’s quest to deliver more services for customers.

“Postmedia will offer customers a choice of a broad array of content that will allow them to access the best of the New Zealand media landscape,” he said.

“Embossed’s expertise and technological capability will allow us to offer more innovative products and services that better meet the needs of our customers.”

In a statement, Emboss chief executive and president Peter Lien said the transaction is about delivering a better, more efficient delivery service for Postmedia customers, while also continuing to offer a quality service to our customers and our partners.

“The new deal with Postmedia will provide Postmedia with an additional revenue stream from our network, increase our customer base and deliver better value to our shareholders,” he added.

“We look forward to collaborating with the Postmedia team to deliver the best service possible for our customers, partners and partners in the digital world.”

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