Print Magazine Publishers Consider Price Hikes
Posted on April 12, 2009
The New York Times reports that some publishers are considering raising the prices of print magazines.
Time is in good company - most big magazines' subscriptions cost on average little more than a dollar an issue. But now, as they consider the decline in advertising and the success of magazines that have increased prices recently, some publishers are wondering whether they can raise their prices without losing subscribers.The Times story says a few print magazines have already gone up in price including The Economist and People. Many publishers need more revenues to survive but raising the prices of print magazines during a recession when people are moving to free web-based resources doesn't sound like it will work. Price hikes are likely to be met by more subscribers non-renewing subscriptions and less people buying the magazine on newsstands.�We�re realizing that the product is undervalued,� said Michael A. Clinton, the chief marketing officer of Hearst Magazines, which raised cover prices on more than half of its magazines last year and plans to raise subscription prices this year.
Publishers have long set low subscription prices and have even lost money doing so, assuming that the real money came from ads. Subscription revenue was gravy.
In the last six months of 2008, subscribers paid an average of 47 cents an issue for Newsweek, 77 cents an issue for BusinessWeek and 89 cents an issue for Fortune, according to an analysis of their filings with the Audit Bureau of Circulations.