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Magazine Subscriptions

interzone55

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Posted January 15, 2013 at 12:00PM

I've noticed that an increasing number of magazines are now available for iPads, this doesn't interest me personally as I don't have an iPad.

What did just interest me was a special offer email I just received. The following special offers were available for the weekly magazine Amateur Photographer

Print & iPad combined subscription Quarterly: £18.47 Annual: £78.99 (about a fiver dearer than quarterly)

iPad only subscription Annual: £79.99 (or £1 more expensive than getting the print copy as well)

Why is it that companies still insist on charging more for digital downloads than physical copies?

Maybe it's because they assume that iPad owners are cash cows...

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woodchip

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Posted January 15, 2013 at 5:59PM

Stopped buying Mags years ago, apart from odd one when I Go away on holidays. Though I have the Money Why Buy mags that most likely have at least three quarts full of Adverts to get you to spend even more money on things you do not need

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morddwyd

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Posted January 15, 2013 at 7:28PM

"Why is it that companies still insist on charging more for digital downloads than physical copies?"

Part of it is that digital downloads carry VAT at 20%. Hard copy is free of VAT.

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Woolwell

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Posted January 15, 2013 at 8:02PM

I was interested in the pricing of Amateur Photographer. Zinio price for the digital edition is £99.99 which they state is a 21% saving of the cover price of £126.99. I get PCA digital through Zinio.

Amateur Photographer's own website repeats the offer as stated by alan14 but the £78.99 is for one year and is by Credit/Debit Card and the £79.99 digital only offer is annually by direct debit only.

They digital version is only for the iPad and not other tablets at present.

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interzone55

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Posted January 15, 2013 at 8:15PM

morddwyd

There's no VAT on digital magazine subscriptions, otherwise they wouldn't be able to bundle the iPad subscription with the print copy.

from http://www.myfavouritemagazines.co.uk/pricing-and-payment-methods/

There is no VAT payable on magazine subscriptions in the UK. However, for some European territories, VAT is payable, but please note all prices on My Favourite Magazines are inclusive of VAT.

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simonjary

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Posted January 16, 2013 at 6:38AM

morddwyd os quite right that VAT is charged on non-paper subscriptions.

See Zinio small print under Add To Cart.

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interzone55

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Posted January 16, 2013 at 8:32AM

simonjary

If that's the case, how do they bundle iPad subscriptions with the print magazine - surely the VAT would be payable on the value of the bundled download whether it is used or not.

I remember in the early 90's a record collecting magazine went bust after they got a VAT bill for the 7" single they bundled with each copy...

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simonjary

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Posted January 18, 2013 at 10:23AM

If they don't charge extra for the iPad subscription there's no VAT to be paid on it.

Free iPad issue with paid-for print magazine.

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interzone55

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Posted January 18, 2013 at 1:47PM

simonjary

VAT is charge on the value of a good or service, not necessarily (but almost always) the selling price. So if a "free" gift increases the value of a Zero-rated product then VAT can be charged.

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