Direct Mail Giant Valassis to get Volume Discounts — Newspapers are not Happy.

The U.S. Postal Service has worked out a volume agreement with direct-mail giant Valassis.  According to AdAge, the discounts, which commit Valassis to a million additional pieces of mail,  “stunned” newspapers.

This deal is not the best news for Newspapers, which have also had their challenges with the electronic media in recent years.

Since 1972, Newspapers have been the delivery service of Valassis coupons, but never the printers of the coupons.  The newspaper free-standing insert coupons were the creation of printer George F. Valassis.

In 2007, Valassis bought direct-mail company Advo for $1.2 billion.  On Friday, August 25, 2012, the market cap for Valassis Communications was $1.01B, and a lot has happened in the incredibly tumultuous world of coupons, print, in-store, and electronic.

According to the Detroit Free Press and the Washington Post, the discounts net out somewhere between $5 and $15 million dollars to Valassis.  The newspapers contend that the discounts are meager in comparison to $1 billion in newspaper revenue that is at risk.