Paperless chase: Can continuous service work?

Kerwin, Ann Marie
October 1999
Advertising Age;10/25/1999, Vol. 70 Issue 44, ps2
Trade Publication
This article probes into the efficiency of a model of selling magazine subscriptions referred to as continuous service, which is being implemented by publisher New Sub Services. Magazine executives dream of a paperless future in which the hundreds of thousands of renewal notices used to maintain subscribers are replaced with automatic charges on credit-card statements. This model of selling subscriptions is referred to as continuous service. New Sub Services began marketing subscriptions in credit card statements in 1996. Three years later, it is selling an estimated 25 million subscriptions, and nearly all of those consumers were brought in with continuous service. New Sub Services founders Michael Loeb and Jay Walker viewed magazines as a service, not just a product. Continuous service means subscribers sign up for a magazine, and agree to charge the subscription price to a credit card.


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