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Top Magazines Struggle to Make Rate Base

The struggle to maintain the circulation levels magazines promise to advertisers has worsened, Media Life reports. Seven of the top magazines failed to meet their rate base, according to the new circulation numbers released Monday by the Audit Bureau of Circulations that cover the six-month period ending December 31, 2005. Magazines that fell below rate base included Playboy, Vibe, Spin, three of the top six parenting titles, and one teen title. Playboy missed its rate base for the first six months of 2005 and subsequently cut it from 3.15 million to 3 million.

Rate bases are harder to meet as response rates fall and postage and printing costs increase. The collapse of so-called stampsheet houses, like Publisher’s Clearing House, a few years ago raised costs in sustaining inflated circulations.

Newsstand sales went down as control shifted away from publishers and more towards mass-market retailers like Wal-Mart.