Why do single-issue periodicals cost a few times more than under subscriptions?

[greenapple]

Generally, I understand that buying single issues of periodicals (whether in digital or print form) are somewhat more expensive. I accept that, because that's a great way for publishers to entice people to pay a lump sum upfront for a yearly deal. I've also heard somewhere that subscriptions help publishers plan print quantity.

However, what I don't understand is when publishers charge many times more for single issues than a copy under subscription.

For instance, at Amazon

The New Yorker
Subscription: $5.99/month ($1.5/issue)
Current Issue: $6.99

Newsweek
Subscription: $2.99/month ($0.69/issue)
Current Issue: $4.99

and it's pretty much the same for most other periodicals.

What's the rationale for such a wide gap in price (single copy vs subscription)? Wouldn't it be cheaper for a person to buy a one month subscription and then cancel it at the end of the month?

[HarryT]

The rationale is to encourage people to buy subscriptions. Simple as that.

[pdurrant]

Originally Posted by greenapple

What's the rationale for such a wide gap in price (single copy vs subscription)? Wouldn't it be cheaper for a person to buy a one month subscription and then cancel it at the end of the month?

Regular publications want subscriptions, not one-off sales. A subscription is regular income and is likely to last for years, if not decades. A one-off sale is a one-off.

And yes, it may be cheaper to get a subscription and cancel after a month than to buy a single issue. But magazines rely on people liking the subscription enough that they decide not to cancel. Or (more cynically) they rely on people forgetting to cancel after a month and then deciding not to bother cancelling.

[theducks]

Originally Posted by greenapple

G
What's the rationale for such a wide gap in price (single copy vs subscription)? Wouldn't it be cheaper for a person to buy a one month subscription and then cancel it at the end of the month?

'Cover price' includes Retailer markup.

No store is going to sell a product without PROFIT.
Haven't you read your Ferengi rules of acquisition?

[Ekaros]

Originally Posted by theducks

'Cover price' includes Retailer markup.

No store is going to sell a product without PROFIT.
Haven't you read your Ferengi rules of acquisition?

"No good deed ever goes unpunished."

You mean that one?

[Dr. Drib]

Too, one's credit card is on hand and it's an automatic renewal, unless one bothers to go through the process of cancelling - sending an official email, etc.

....and probably then dealing with a wonderful and new spectacular discount offer....

[SteveEisenberg]

Originally Posted by Dr. Drib

....and probably then dealing with a wonderful and new spectacular discount offer....

Right. And then I've got the we-missed-you offer of maybe $10 a year for the paper magazine to be weighed against the $1.99 a month Kindle edition. I'll read a lot more of the magazine if it's on my Kindle, since that's always with me, but it's hard to give up that discount. (Example: Atlantic Monthly)

[DiapDealer]

I've generally found that unread periodicals pile up on my virtual coffee table just the way they did on my "real" coffee table. I still renew every year, though. *shrugs*

[tubemonkey]

Zinio + public library = free magazine subscriptions

[greenapple]

It just doesn't make sense to me why anyone would want to buy a magazine at Amazon at the single issue price, when it costs him less to have 4 issues.

[JSWolf]

Originally Posted by greenapple

It just doesn't make sense to me why anyone would want to buy a magazine at Amazon at the single issue price, when it costs him less to have 4 issues.

Because you don't want a subscription, but you do want that specific issue for something in that issue.

[Jessica Lares]

When you subscribe to a magazine, the entire cost goes to the publisher of said magazine.

And yes, like theducks said, when you buy a magazine in a store, the price is usually divided between the store and maybe a distributor.

It works like most PAYG stuff. The majority of revenue comes from those one-off buys.

[mrmikel]

There is usually a magazine distributor here in the States who actually stocks the magazines in the various stores and there may be a distributor between them and the publisher, one covering the entire state. The stores themselves don't usually buy the magazines, but rely on these intermediaries to provide them.

I kinda knew it, but was reminded of it lately when my wife wanted an issue of Vanity Fair and could not find it and the store workers bitterly criticized the distribution company that did not place them in a timely manner.

[DrNefario]

Subscribers are what magazines actually sell - to advertisers. Selling the actual magazine to readers is a sideline.

[howyoudoin]

Originally Posted by Jessica Lares

When you subscribe to a magazine, the entire cost goes to the publisher of said magazine.

And yes, like theducks said, when you buy a magazine in a store, the price is usually divided between the store and maybe a distributor.

It works like most PAYG stuff. The majority of revenue comes from those one-off buys.

Correct me if I'm wrong, but doesn't Apple take their 30% cut irrespective of whether it's a subscription or a one-off purchase?