Magazine & eMedia Publishing Professional & Social Network
Why publishers are not willing to raise subscriptions' price?
I subscribed three magazines this year. And the publishers have begun sending me renew letters. One said"1 year at $9.99". So the average price is $ 0.83 per issue. At the same time, the newsstand sale is at $4.99 per issue. I know the business model for most magazines are selling ads to make money. But I am still impressed by such a low subscription price. Nowadays, selling ads is extremely difficult. My question is why publishers are not willing to raise the subscription price? I want to hear your opinion.
Replies to This Discussion
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Permalink Reply by Kevin Convertito on -
More subscribers = higher ad rates. We take a loss on subs in order to make it back on ad sales and newsstand -- single-copy newsstand sales are where the real gravy is made...
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Permalink Reply by Kenneth Tan on -
Sometimes we hope that we can win on both end, is nice to dream a little once a while.
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Permalink Reply by Richard Michem on -
Not to be nosy> What is the name of the mag you are speaking about? In 1970 the old Life magazines, was selling subscription, for 9cent an issue> Their cost was 40cent per issue. The original thinking was. you could make up the lost with ads. Now with advertising dropping, your going to see more magazine and newspaper keep their subscription rates high, for the renewal.
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Permalink Reply by Kevin Convertito on
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I doubt most publications losing ad pages will be able to make the difference up on the newsstand, especially with all the consolidation and rising distribution costs on the Circ side -- they will just die off...if you figure it takes about a buck to print and a buck (for smaller publishers like my company) to mail a thick glossy mag, most any monthly like that with a sub price of under $24/year is probably eating a bit of that cost...Adbusters for counterexample has NO ads, but their subs cost $75 for 18 issues -- roughly $4 bucks an issue, probably just enough to pay printing + shipping and still keep the lights on...Adbusters also has a $8.95 cover price to (hopefully) make up for the lack of ad $$$...
"I believe what I said yesterday. I don't know what I said, but I know what I think, and, well, I assume it's what I said." - Donald Rumsfeld
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Permalink Reply by Rob Oberheide on -
The problem is, once you have customers used to getting your magazine at an unreasonably low annual price, it is extremely difficult to raise sub rates without a dramatic drop in renewals. It can take years to work your pricing back up without causing significant fallout of renewal activity.
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Permalink Reply by Kenneth Tan on
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Because we cant, because they are too many free media trying to get your attention and if print publishers try to raise the rate, they fear the worst. So you are not in the publishing industry?
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Permalink Reply by Qing on -
Thanks guys for your participations. I agree with Rob. It's a tough job to raise subscription price. Tan is right-free online stuff is a big threath.
Happy Thanksgiving!
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Permalink Reply by Deb Boyken on -
It also helps get people to sign up. You can always raise the rate (preferably in stage) when you ask them to renew, but you've got to get them in the door FIRST!
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