Rising newsprint cost and a falling rupee is taking its toll on the magazine industry, forcing print players to rework their ad rates and cover prices. Outlook has increased its cover price from Rs 20 to Rs 25. Also, the ad rates for Outlook, Outlook Hindi, Outlook Business, Outlook Money and Outlook Traveller have been revised.
In a release issued, Suresh Selvaraj, President, Outlook Group, said, “Never in the past has the print industry witnessed turmoil on paper. Prices have soared and spun out of control. As the demand for newsprint worldwide sees a steady increase, production capacity is almost stagnating, thereby restricting supplies. With the rupee falling alarmingly against the US dollar, the whole situation is choking the print industry. Magazines get hit harder as we use imported glazed or coated paper.”
He further said, “INS has stipulated to increase the ad rates by 30 per cent. However, we do realise that such a steep increase midway through the financial year and would be tough for our clients. Considering these factors and the constraints, we are marginally increasing the ad rates for select magazines of our Group by 7 per cent to 10 per cent.”
Consequently, the full-page ad rate of Outlook has been revised from Rs 450,000 to Rs 490,000; for Outlook Hindi it has been changed from Rs 125,000 to Rs 135,000; Outlook Business has gone up from Rs 265,000 to Rs 290,000; ad rates for Outlook Money has gone up from Rs 210,000 to Rs 230,000; and for Outlook Traveller it had been changed from Rs 150,000 to Rs 165,000. The increase would be effective from November 1, 2008.
However, there is no increase in the rates of Outlook Profit, Outlook Lounge, Marie Claire, People, and Geo.
Selvaraj further said, “Simultaneously, we are increasing the cover price of Outlook from Rs 20 to Rs 25 from the October 13 issue. We do not see any major impact as more than 50 per cent of our base is through paid up subscription. Historically, we have seen that our TG is hardly price sensitive on such marginal increase and we do not see any impact – barring fractional – on newsstand sales.”