His plan (when you read the actual article) has some logic behind it, but it is based upon a false premise.
Basicly, he wants to be a premium news magazine. He plans on making money on subscriptions as well as advertising.
Instead of selling 3 million mag at $3 (9 mill a month), he’ll sell 1.5 million at $5 (7.5 mill a month). Since his printing costs will be halfed, he’ll probably net more profit out of the 7.5 mill than the 9 mill.)
He probably figures he can maintain his advertising rates by saying his new readers have more upscale and have more disposable income (because they are willing to spend more on a premium news magazine.)
What he forgets about is competition. What is going to differentiate Newsweek from its competition to the point that customers are willing to shell out more money for it?
This reminds me of the Cable ad where they guy (with the inferior product) says “we’ll target people with more disposable income and let them dispose of their income to us.”
He wants to become the ‘Esquire’ of news mags. Good luck.
Like The New Yorker? Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha