Subscriptions and Advertising Revenues

We have noticed that some big and very successful magazines are showing an increased interest in the prospect of building digital subscriptions. Subscription revenues are looking attractive and necessary as advertising revenues in magazines and newspapers shrink. Gradually the largest magazine publishers are thinking about the potential for digital subscriptions, see some comments from Hearst’s John Loughlin. He reckons that each new email address is worth 80c to them. Using the back of the only available envelope, and factoring in conservative renewal rates, each new subscriber to a digital magazine is worth at least £20 and as much as £300 to the publisher….. Since the marginal cost of doing a digital edition can be effectively zero offering digital subscriptions in this market has to be a no-brainer, (Exact Editions will assume all the costs if the magazine has a solid market and good digital prospects. We trade the costs for a modest commission on sales). Its time I dropped John Loughlin a note about digital subs.

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