• Folio:, Wednesday, December 10, 2008 9:15 AM

Facing increased postage costs, Newsweek is quietly considering slashing up to 1.6 million copies from its current rate base of 2.6 million. The magazine would like to transition from a large newsmagazine to a smaller "thought leader," something more akin to the Economist.

Insiders say Newsweek editors are infatuated with the Economist and realize that to get the thought leader position, circulation of a million is the "sweet spot." The Economist's rate base in North America is 714,000.

Newsstand sales, which are usually considered a good barometer of reader demand, have fallen for Newsweek to 83,000 from 147,000 in 2004, according to the ABC. Rival Time's newsstand circulation has also slipped -- from 163,000 four years ago to about 96,000 this year. "Many publishers are facing the challenge of finding circ levels that are commensurate with [changing] reader demand," says newsstand consultant Baird Davis.

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