News Magazine Rebrand Struggling

NEWSWEEK’s five-year rebranding plan jettisoned mass-market in favor of a select upper income market, which will pay higher subscription prices.  As of January 2010, circulation was cut from 2.6 million to 1.5 million.  The Washington Post-owned title, which once rivaled TIME, now enters the arena against the lower circulation ECONOMIST and NEW YORKER.

Newsweek numbers and ad revenue continue to tumble, according to parent company The Washington Post Company.  In the first year of a five-year rebranding plan, it lost $28 million.  Revenue declined 27%.

CEO Tom Ascheim and Editor-in-Chief Jon Meacham expected 2009 to be a rough year, but hold hope that divesting ARTHUR FROMMER’S BUDGET TRAVEL and rebranding the US version of Newsweek using a successful European model will prove lucrative.  In Europe in 2005, the reshaped Newsweek magazine rebounded and profits increased 20%.

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