People Mag Prepares New Subscription Model
Chasing additional consumer revenue
By Lucia Moses
Time Inc. cash cow People is preparing to unveil a new pricing model designed to transform the way people think about subscriptions, according to people familiar with the publisher's plans. Other titles in the company are expected to follow suit.
With advertising sagging-PricewaterhouseCoopers estimated that consumer magazine ad revenue will decline 7.3 percent from 2012 to 2017, to $15.2 billion-Time Inc. isn't alone in turning to consumers for new revenue. Hearst Magazines priced its tablet editions higher than its print editions, betting that people will pay more for an enhanced version. Casting its net for more print subscribers, Condé Nast recently announced a deal with Amazon to let people manage their orders on the e-commerce site.