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Free Subscriptions Cost Money Too

January 28, 2009 6 Comments
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TORONTO, ONTARIO 1960'S TORONTO STAR NEWSPAPER...
Image by woody1778a via Flickr

About two weeks ago, I started to get the Toronto Star delivered to my doorstep. Which confused me a little, since I get all my news online, and I didn’t sign up for a subscription. Being the good soul I am, I took it indoors from the cold and warmed it up by reading it.

Since it was the weekend when this happened, I thought it might be a one-off Saturday promotion to attract new subscribers.

Then the weekday editions arrived as well, starting on the following Monday. Time to find out what was happening.

I called the Star’s subscription office and explained what was happening. The girl I spoke to was very helpful, apologized and explained sometimes this happens (although no reason was given why). She said she’d make sure the subscription stopped and that I wouldn’t be charged. Cool, case solved and back to my paperless world.

Until the next day, when the Star arrived again. Then the next. And the next. And… well, you get the picture. So, looks like I’m stuck with the paper. But here’s the kicker.

I looked at how much it costs to subscribe to the Star. If you fill out their online subscription form, it’s $4.47 plus tax per week. However, this is a special offer that ends February 1, which saves you 30% on the normal price. So, for argument’s sake, let’s go with the normal price, which would then be $6.40 (by my calculations).

$6.40 per week for 52 weeks – that would be $332.80 per year (plus tax) just for me alone. One person. Now, according to the girl I spoke to, this can happen. I wonder how often, and to how many.

The newspaper industry is in a bit of turmoil at the minute. It’s one that’s been hit particularly hard by online media sources, ink costs and the failing economy. While just over $330 per year may not sound a lot, it soon adds up with every new person it applies to.

I’d hazard a guess that the Star’s subscription team being unaware of why it’s happening – and worse yet, letting it continue – won’t go down well with the rest of the paper’s employees should cutbacks need to be made to save costs.

Which makes me wonder. If you’re in business, do you know where all your money’s going?

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About Danny

Danny Brown is Chief Technologist at ArCompany and an award-winning marketer and blogger. His blog is recognized as the #1 marketing blog in the world by HubSpot. Danny is also co-author of Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing.

18 comments
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John Carson
John Carson

Hey Danny, This has been happening to us for a few years now. Subscribed to the Saturday edition only, then they start sending us the weekly for free for at least two months, then it stops, then starts again about six months later. Sad thing is I don't have time to read the weekly but do check their website every day. Bit of a waste of resources. You'd think paper grew on trees or something, right? Cheers, John.

John Carson
John Carson

Hey Danny,

This has been happening to us for a few years now. Subscribed to the Saturday edition only, then they start sending us the weekly for free for at least two months, then it stops, then starts again about six months later.

Sad thing is I don't have time to read the weekly but do check their website every day. Bit of a waste of resources. You'd think paper grew on trees or something, right?

Cheers,
John.

John Carson
John Carson

Hey Danny,

This has been happening to us for a few years now. Subscribed to the Saturday edition only, then they start sending us the weekly for free for at least two months, then it stops, then starts again about six months later.

Sad thing is I don't have time to read the weekly but do check their website every day. Bit of a waste of resources. You'd think paper grew on trees or something, right?

Cheers,
John.

katbron
katbron

Danny - Toronto Star says "You will read it and you will enjoy it!"
A few years ago, the newspaper in my city began just random subscriptions to my area because the subscriber base was slipping. I called to inquire why I was getting the newspaper and they told me because I already subscribed on Sunday, they were giving it to me for free M-Sa. OK by me. Then my husband got annoyed because they were piling up in the driveway, we just didn't read it and no one cared enough to pick it up. So, I called to have it stopped. They tried to talk me into keeping it, and I had to argue vehemently to get it stopped. Because I am in marketing, I compared the subscriber base from year to year and noted the sharp declines and figured out that it all comes down to the cost per thousand the newspaper can charge to advertisers. And if no one is subscribing - or not enough in premium areas - the advertising stops. My take only:)

Danny Brown
Danny Brown

Interesting point, and one that I guess makes sense. As you say, no subscribers, no advertisers.

I'm curious, though, how much it costs to "give away" free subs just to get advertiser numbers. Does it negate a lot of the benefits from the ads, or not really an issue? I guess only the newspaper can say.

katbron
katbron

Danny - Toronto Star says "You will read it and you will enjoy it!"
A few years ago, the newspaper in my city began just random subscriptions to my area because the subscriber base was slipping. I called to inquire why I was getting the newspaper and they told me because I already subscribed on Sunday, they were giving it to me for free M-Sa. OK by me. Then my husband got annoyed because they were piling up in the driveway, we just didn't read it and no one cared enough to pick it up. So, I called to have it stopped. They tried to talk me into keeping it, and I had to argue vehemently to get it stopped. Because I am in marketing, I compared the subscriber base from year to year and noted the sharp declines and figured out that it all comes down to the cost per thousand the newspaper can charge to advertisers. And if no one is subscribing - or not enough in premium areas - the advertising stops. My take only:)

Danny Brown
Danny Brown

Interesting point, and one that I guess makes sense. As you say, no subscribers, no advertisers.

I'm curious, though, how much it costs to "give away" free subs just to get advertiser numbers. Does it negate a lot of the benefits from the ads, or not really an issue? I guess only the newspaper can say.

katbron
katbron

Danny - Toronto Star says "You will read it and you will enjoy it!" A few years ago, the newspaper in my city began just random subscriptions to my area because the subscriber base was slipping. I called to inquire why I was getting the newspaper and they told me because I already subscribed on Sunday, they were giving it to me for free M-Sa. OK by me. Then my husband got annoyed because they were piling up in the driveway, we just didn't read it and no one cared enough to pick it up. So, I called to have it stopped. They tried to talk me into keeping it, and I had to argue vehemently to get it stopped. Because I am in marketing, I compared the subscriber base from year to year and noted the sharp declines and figured out that it all comes down to the cost per thousand the newspaper can charge to advertisers. And if no one is subscribing - or not enough in premium areas - the advertising stops. My take only:)

Danny Brown
Danny Brown

Interesting point, and one that I guess makes sense. As you say, no subscribers, no advertisers. I'm curious, though, how much it costs to "give away" free subs just to get advertiser numbers. Does it negate a lot of the benefits from the ads, or not really an issue? I guess only the newspaper can say.

John Carson
John Carson

Hey Danny,

This has been happening to us for a few years now. Subscribed to the Saturday edition only, then they start sending us the weekly for free for at least two months, then it stops, then starts again about six months later.

Sad thing is I don't have time to read the weekly but do check their website every day. Bit of a waste of resources. You'd think paper grew on trees or something, right?

Cheers,
John.
via uberVU

Danny Brown
Danny Brown

Interesting point, and one that I guess makes sense. As you say, no subscribers, no advertisers.

I'm curious, though, how much it costs to "give away" free subs just to get advertiser numbers. Does it negate a lot of the benefits from the ads, or not really an issue? I guess only the newspaper can say.
via uberVU

Hendry Lee
Hendry Lee

Your theme changed again. Now I like this better. :)

To answer your question, yes but no. I am aware of all of my subscriptions. I approved them all, never have an experience like yours. But even when I don't use them later, I don't usually cancel the subscriptions until months later.

Sometimes it is easy to think that I'm going to need them again, or because it is just a $24/mo/subscription it doesn't matter much. Perhaps it is on a monthly basis, but obviously they add up very quickly after taking the total into account.

Hendry Lee
Hendry Lee

Your theme changed again. Now I like this better. :) To answer your question, yes but no. I am aware of all of my subscriptions. I approved them all, never have an experience like yours. But even when I don't use them later, I don't usually cancel the subscriptions until months later. Sometimes it is easy to think that I'm going to need them again, or because it is just a $24/mo/subscription it doesn't matter much. Perhaps it is on a monthly basis, but obviously they add up very quickly after taking the total into account.

Hendry Lee
Hendry Lee

Your theme changed again. Now I like this better. :)

To answer your question, yes but no. I am aware of all of my subscriptions. I approved them all, never have an experience like yours. But even when I don't use them later, I don't usually cancel the subscriptions until months later.

Sometimes it is easy to think that I'm going to need them again, or because it is just a $24/mo/subscription it doesn't matter much. Perhaps it is on a monthly basis, but obviously they add up very quickly after taking the total into account.

katbron
katbron

Danny - Toronto Star says "You will read it and you will enjoy it!"
A few years ago, the newspaper in my city began just random subscriptions to my area because the subscriber base was slipping. I called to inquire why I was getting the newspaper and they told me because I already subscribed on Sunday, they were giving it to me for free M-Sa. OK by me. Then my husband got annoyed because they were piling up in the driveway, we just didn't read it and no one cared enough to pick it up. So, I called to have it stopped. They tried to talk me into keeping it, and I had to argue vehemently to get it stopped. Because I am in marketing, I compared the subscriber base from year to year and noted the sharp declines and figured out that it all comes down to the cost per thousand the newspaper can charge to advertisers. And if no one is subscribing - or not enough in premium areas - the advertising stops. My take only:)
via uberVU

Hendry Lee
Hendry Lee

Your theme changed again. Now I like this better. :)

To answer your question, yes but no. I am aware of all of my subscriptions. I approved them all, never have an experience like yours. But even when I don't use them later, I don't usually cancel the subscriptions until months later.

Sometimes it is easy to think that I'm going to need them again, or because it is just a $24/mo/subscription it doesn't matter much. Perhaps it is on a monthly basis, but obviously they add up very quickly after taking the total into account.
via uberVU

Danny Brown
Danny Brown

The newspaper industry is finding it a struggle at the minute with countless job losses and papers folding. So why is one newspaper throwing away its money?
via uberVU

Danny Brown
Danny Brown

The newspaper industry is finding it a struggle at the minute with countless job losses and papers folding. So why is one newspaper throwing away its money?
via uberVU

Trackbacks

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