Due to the recession, the independent company has slowly lost revenue as advertisers are beginning to cut spending. The magazine company already claims to have cut costs, mainly expanding on their online features. They have also stopped shipping a sampler CD with every issue, and instead offer their samplers as an online download for subscribers. The letter they have written to their subscribers states that even a 1$ donation from each member will help save the magazine. As an incentive they have offered up a collection of rare and exclusive MP3’s for anyone willing to donate, and for every 25$ contribution the donor will be entered in a drawing for prizes such as signed posters, CD box sets, and even a cruise trip.
People may remember Paste Magazine for following Radiohead’s “Pay What You Want” market plan back in 2007, offering a full-year subscription for as low as 1$, but it now seems as though this model may not have worked for Paste. Although the magazine has won ‘Magazine of the Year’ awards in 2006,2007 and 2008, Paste continues to struggle. This magazine is not the only one to struggle, with the downfall of Blender Magazine, and even the Star Tribune (the 15th largest newspaper based on circulation) filing for bankruptcy. This campaign appears to be another sign of the times.
Read their letter here.