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Low Mag Sub Rates: 'Game Of Charades'

"When a subscriber reacts to a give-away sub price offer, how much real interest can that subscriber have in the editorial product?" asks Steve Blacker.

He compares the actual subscription fees for different magazines, such as Conde Nast's (generally higher-priced than other publishing company's) New Yorker at $69.99 a year, versus Esquire's "bargain basement rate of $8" or three years for $18. "Aside from showing product weakness, the 60 cents Esquire sub offer has to reflect a poor renewal rate as well," writes Blacker. 

"It's a game of charades," according to Blacker. "Advertisers know that magazines that sell cut rate subs have artificial rate bases. Thus, they get magazines to heavily discount their ad rates. In the end magazines are the biggest losers."

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