From: John Hudson <jahudson@xxxxxxxxx>
Subject: Re: (Fwd) Re: [OM] Pre-press secrets
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>category! So can you explain briefly why it is more beneficial for the
>publisher for readers to s*ubscrib*e (besides of course you getting a chunk of
>money up front) than buying on the newsstand?
Certainty of a stream of income at a low[er] income per unit is better and
more lucrative than the off chance of a one-off sale at a high[er] income
per unit.
As production increases and fixed costs remain constant, the subscription
revenue has only to exceed the marginal cost of production for the product
to remain profitable. Subscription rates are slanted to recovering those
marginal costs plus a small profit. One-off sale prices are slanted towards
recovering marginal and fixed costs.
jh
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