Sponsored circulation amoung audited consumer magazines amounts to 17.5 million copies, according to Circulation Management
's Baird Davis, and represents a sizable chunk as the industry looks to shore up its circ.
Davis pegs the projected (estimated) industry amount of sponsored circ at 16.9 million sponsored subs and 600,000 single copy sponsored. “This is a sizable amount of circ,” Davis says. “It represents 6.1 percent of the total paid circ reported by the industry’s 592 audited consumer publications.”
“Over the next six months, publishers/circulators will have to make some heavy decisions based on revised ABC reporting regulations and the proposed action of Time Inc.
to report its sponsored circ as ﾑqualified’ in the second half of this year.”
“This will have very significant ramifications concerning how publishers address the ﾑpaid’ rate base issues involved,” he says. “Will they reduce rate bases? Will they maintain rate bases by replacing the sponsored circ with paid circ? Will they adopt combination rate bases that combine both paid and qualified circ? Publishers are faced with some tough decisions.”
Late last month, Time Inc. expressed its desire
to make its sponsored circ reporting changes earlier than previously mandated, asking the audit bureau to provide that option for the second half of 2005.
ABC has said they will be making a prototype of the Publishers Statement available within the next week or so. Time’s request will be addressed at the annual meeting in November.
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