Washington Post 2002 Annual Report Download - page 12

Newsweek is sold on newsstands and through subscription mail order sales derived from a number of sources,
principally direct mail promotion. The basic one-year subscription price is $41.08. Most subscriptions are sold at a
discount from the basic price. In May 2001, Newsweek’s newsstand cover price was increased from $3.50 per
copy (which price had been in effect since April 1999) to $3.95 per copy.
The total number of Newsweek’s domestic advertising pages and gross domestic advertising revenues as reported
by Publishers’ Information Bureau, Inc., together with Newsweek’s percentages of the total number of advertising
pages and total advertising revenues of the three leading weekly news magazines, for the past five years have been
as follows:
Percentage of Newsweek
Newsweek Three Leading Gross Percentage of
Advertising News Advertising Three Leading
Pages* Magazines Revenues* News Magazines
1998**************** 2,472 34.4% $393,168,000 33.8%
1999**************** 2,567 33.5% 432,701,000 32.8%
2000**************** 2,383 33.8% 433,932,000 34.2%
2001**************** 1,822 33.6% 334,179,000 32.5%
2002**************** 1,971 35.2% 387,698,000 34.8%
* Advertising pages and gross advertising revenues are those reported by Publishers’ Information Bureau, Inc. PIB computes gross advertising
revenues from published basic one-time rates and the number of advertising pages carried. PIB figures therefore materially exceed actual
gross advertising revenues, which reflect lower rates for multiple insertions and other discounts from published rates. Net revenues as
reported in the Company’s Consolidated Statements of Income also exclude agency commissions, which are included in the gross advertising
revenues shown above. Page and revenue figures exclude affiliated advertising.
Newsweek’s published advertising rates are based on its average weekly circulation rate base and are competitive
with those of the other weekly news magazines. As is common in the magazine industry, advertising typically is sold
at varying discounts from Newsweek’s published rates. Effective with the January 14, 2002 issue, Newsweek’s
published national advertising rates for all categories of such advertising were increased by 5.0%. Beginning with
the issue dated January 13, 2003, such rates were increased by an additional 4.8%.
Internationally, Newsweek is published in an Atlantic edition covering Europe, the Middle East and Africa, a Pacific
edition covering Japan, Korea and south Asia, and a Latin American edition, all of which are in the English
language. Editorial copy solely of domestic interest is eliminated in the international editions and is replaced by other
international, business or national coverage primarily of interest abroad.
Since 1984 a section of Newsweek articles has been included in The Bulletin, an Australian weekly news magazine
which also circulates in New Zealand. A Japanese-language edition of Newsweek, Newsweek Nihon Ban, has
been published in Tokyo since 1986 pursuant to an arrangement with a Japanese publishing company which
translates editorial copy, sells advertising in Japan and prints and distributes the edition. Newsweek Hankuk Pan, a
Korean-language edition of Newsweek, began publication in 1991 pursuant to a similar arrangement with a Korean
publishing company. Since 1996 Newsweek en Espa˜nol, a Spanish-language edition of Newsweek distributed in
Latin America, has been published under an agreement with a Miami-based publishing company which translates
editorial copy, prints and distributes the edition and jointly sells advertising with Newsweek. In June 2000,
Newsweek Bil Logha Al-Arabia, an Arabic-language edition of Newsweek, was launched under a similar arrange-
ment with a Kuwaiti publishing company. Also, Newsweek Polska, a Polish-language newsweekly, was launched in
September 2001 under a licensing agreement with a Polish publishing company which, in addition to translating
selected stories from Newsweek’s various U.S. and foreign editions, has established a staff of Polish reporters and
editors for the magazine. In December 2002 Newsweek announced an agreement with a Hong Kong-based
publisher to publish Newsweek Select, a Chinese-language magazine which will be based primarily on selected
content translated from Newsweek’s U.S. and international editions.
10 THE WASHINGTON POST COMPANY