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Magazines losing ability to charge subscription fees 3/20/07

Posted by Steve Boriss in Money.

Not surprisingly, the business model for magazines is also under fire, as their ability to collect subscriber fees in the new online environment is questionable. Like newspapers, two factors are at the root of their problem. First was the precedent set decades ago for free, fully advertiser-supported news content with the introduction of broadcast communications, a model that may never have emerged had encryption technology been available at the same time. Second, there is the problem of supply and demand. There is an infinite supply of engaging stories that individuals and organizations are willing to tell for free and, for that matter, pay to have told. The most common model for revenues in the future will center around attracting audiences that are of particular interest to advertisers based primarily on their size, and qualities that make them good prospects.


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