Monday, October 26, 2009

Questions being asked about low-cost, "partnership" subs

A friend asks: "Is this a last gasp before everyone (as Playboy, most recently, is doing) returns to building and maintaining smaller circulations - of truly committed readers - that actually contribute to the bottom line?"
He was referring to the growing trend of "partnership deductible" subscriptions whereby a sub is bundled with the purchase of other products or services. For instance, Maxim magazine being bundled with eHarmony dating services or gaming sites.
Proponents acknowledge that the numbers are relatively small, and renewal rates low, but defend the method as a low-cost means of attracting some subscribers with potential to become longer-term. For instance, publisher Eric Zinczenko of Field & Stream says the title derives 25% of its circ mainly from partnerships with outdoor companies and that such subs cost 75 cents, compared with $3.50 for a direct-mail subscription.
According to a story in MediaWeek, the Audit Bureau of Circulations (ABC) has tightened up the rules and banned so-called "non-deductible" subs that forced the consumer to buy the magazine if they bought a partner product or service.
But two recent ABC decisions paved the way for this category to grow. One expanded the allowed partners to charitable groups. Another let publishers sell up to three titles with a product or service, as long as each additional magazine comes with an additional purchase.
Proponents of this practice argue that consumers can opt out; but critics wonder about the "wantedness" of the titles and the inflation of circ numbers. The opt-out process is often deliberately cumbersome.
“It’s a challenge for the consumer to not get the magazine and get their money back,” said Jack Hanrahan, founder of Circ Matters, a circulation newsletter.

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