People Magazine Takes Subscription Bundling to the Next Level

Consumer magazines like People have been stalwarts in the print industry, only adopting digital editions recently, and mostly because of the tablet. And People

Consumer magazines like People have been stalwarts in the print industry, only adopting digital editions recently, and mostly because of the tablet. And People was smart enough to price its digital and print editions equally, charging $112 for either or $132 for both.But now the most popular celebrity magazines (3.5 million paying subscribers) is adding a tiered subscription model. For the younger, more tech-savvy celebrity fans (who are also less likely to pay since they can gain almost direct access to celebrities through social media), People is introducing a $10 annual subscription to its new CelebFood and CelebWatch apps.The site is also including a super-premium package priced at $200 that includes both print and digital subscriptions, access to new online material, a six-month gift subscription for a friend and shipped boxes of goodies selected by People editors. The first box contains “designer note cards inspired by this season’s shirtdresses, an animal-print scarf influenced by the styles worn by Heidi Klum and vinyl nail wraps that give subscribers a glimpse at Rihanna’s style,” according to The New York Times.Tying physically shippable products to a print or digital subscription is definitely a new idea in the subscription content industry. And it introduces a new level of complication. Physical products, unlike digital products or print or digital content, is subject to sales tax in almost every state. For this reason, small, independent subscription content publishers have been slow to adopt this model.But it looks like the bigger players, from Real Simple to The New York Times, have plans to launch similar gift box programs. Which will definitely invite a membership mentality among subscribers — a good thing for retention.I should also note that People’s decision to bundle in a gift subscription is pretty ingenious. While the title is still profitable through both subscription and advertising revenue, their preventative measure to acquire new subscribers indicates their willingness to see the changing media landscape and not just stick their head in the sand like some other publications have done.

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