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Oops! Lower Mag Prices = Lower Sub Rates
Friday, February 5, 2010

Defying the usual laws of pricing and demand, it turns out that magazines do not realize increased subscription rates when they lower their prices. According to the latest issue of CircMatters, lower costs to readers actually correlated with declines in subscription sales. Go figure.

CircMatters did the figuring. Analyzing the 344 Audit Bureau of Circulation member magazines, the newsletter found that on a “subscription cost per copy” basis, magazine subscription rates dropped 7% between 2002 and 2009, from $1.70 per copy to $1.58. About 65% of titles (222) reduced their price. But of that 222, 164 had their level of paid individual subscriptions decline as well.

“In other words, nearly three out of four magazines that took their price per sub copy down saw their subscription sales level dip,” according to the newsletter. CircMatters publisher Jack Hanrahan wrote in the newsletter, “This CircMatters examination of subscription pricing suggests that the health of single copy sales may not be the only area of concern for the industry.”


Hanrahan warns that some magazines are looking for alternative routes to increase circulation, including “sponsored subscriptions,” in which a third party underwrites the cost of the subscription by paying an undisclosed fee to the publisher. He contends that publisher may be pumping up their circ numbers but undercutting their revenue with such plans.

Nominations are being accepted for min's In-Box Awards, which will honor achievements in email publishing. Winners will be announced at min’s "How-To" Email Marketing and Monetization Conference on April 29 in New York.

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