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Time
Digital relaunching
as On, for web readers
Post-merger
synergy with America Online
Synergy, anyone?
As federal regulators work through their last lingering reservations about
the America Online-Time Warner merger, the two companies have plans to
publish a magazine about technology and the internet for consumers.
Time Inc.’s Time Digital magazine, a monthly
technology magazine that was spun off newsweekly Time last year, will be
redesigned and renamed On beginning with the March issue.
The magazine will be marketed heavily to users of AOL’s
internet service, with some 300,000 AOL subscribers receiving free trial
subscriptions to On initially. If the giveaways are successful in luring
AOL users to buy subscriptions, the offer could be extended to all new
customers.
Selling subscriptions through AOL is expected to be one
of the major ways in which Time Inc. benefits from the merger that when
approved will create the world’s largest media company.
Acquiring circulation is a huge economic burden for
publishers, and has become even more expensive in recent years as direct
mail response rates have fallen, newsstand distribution has undergone
consolidation, and sweepstakes operators such as Publishers Clearinghouse,
long a cheap source of bulk subscriptions, have been forced to curtail
their activities.
In October, Time Inc. said that a five-month test
program selling subscriptions through AOL had yielded more than 500,000
new subscriptions for Time Inc. magazines. And Andy Sareyan, publisher of
the company’s new women’s magazine Real Simple, has said that the
title has had much success selling subscriptions on the web. Still, doubts
persist about how effective the web will ultimately prove as a vehicle for
selling subscriptions.
On will compete with Yahoo! Internet Life, the
fast-growing web culture magazine published by Ziff-Davis in a licensing
arrangement with Yahoo. This month Yahoo! Internet Life raised its rate
base from 1 million to 1.1 million.
Time Digital has a circulation of 1 million, although
that figure includes a portion of controlled, or unpaid, circulation. The
magazine carried 261.91 advertising pages through November of 2000,
according to the Publishers Information Bureau. Time Digital first
appeared as a supplement to Time in 1995, and was launched as a
stand-alone title in April of last year.

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