Time Inc. is working to make all of its magazines be available through "all-access subscriptions" where a single subscription will let the reader receive both paper and electronic editions. Magazine publisher Hearst is attempting to sell "continuous-service" electronic subscriptions to its magazines that are billed monthly to a credit card. True / False.

Question

Adam Moreno

Business

22 March, 01:14

Time Inc. is working to make all of its magazines be available through "all-access subscriptions" where a single subscription will let the reader receive both paper and electronic editions. Magazine publisher Hearst is attempting to sell "continuous-service" electronic subscriptions to its magazines that are billed monthly to a credit card. True / False.

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Answers (1)

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Kevin Bright · Answer 1

True.

Explanation:

Continous magazine subscription is a disruptive innovation that was introduced to replace the traditional subscription where a user subscribes and can terminate the subscription. Renewal notices have to be mailed to subscribers which is not cost effective.

Continous magazine subscription uses the service model. Credit cards were used to obtain subscriptions. For example if magazine company partners with credit card company, making subscription will only be part of uses the services of the bank.