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India Today and Outlook contemplating increasing cover price to Rs. 15

21-January-2002
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India Today and Outlook contemplating increasing cover price to Rs. 15

Information available to exchange4media reveals that India Today and Outlook, the number one and number two English Weeklies, in terms of readership, are contemplating an increase in their cover charges from Rs. 10 to Rs. 15.

Sources say that both magazines have seen a surge in demand in the recent months owing to the various political and military events taking place around the world. An increase in circulation has lead to a situation where the operational costs associated with printing and distribution have gone up without a proportional increase in advertising revenues, as that will happen only after the official circulation data is released. It is to counter this effect that the publications are planning this move.

According to Media watchers, a magazine’s revenues are more balanced between advertising and subscription as against a newspaper’s revenues, which are largely advertising driven. An increase in the circulation of the magazine doesn’t translate into an increase in advertising revenues immediately, since there is a time lag between increase in circulation and the release of circulation data. In the interim an increase in circulation leads to higher costs without a proportional increase in advertising revenues.

Our readers would remember that Business Today, a publication from the Living Media group, had reduced its cover price to Rs. 10 last year. The initiative was aimed at increasing the accessibility of the magazine in order to push the circulation and readership higher. India Today, another Living Media publication, seems to be planning a different strategy to benefit from the increased demand.

Given the difficult times being faced by publishers today on the advertising front, it might not be a bad idea to recover more from the consumers but whether it will accepted by the consumers, only time (read circulation numbers) will tell.

Keep visiting us for more on this and other stories.

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