Outpost Excahnge Expands Online

http://www.bizjournals.com/milwaukee/stories/2009/05/04/daily3.html

Summary
Outpost Exchange Magazine, a publication of Outpost Natural Foods, a cooperative, community- owned grocery store, will begin publishing its free monthly magazine online. In addition to publishing their magazine print content on the Third Coast Digest, Outpost Exchange columnists and editors will blog throughout the month to share newest thoughts about nutrition and food. Outpost started publishing their magazine as part of the Third Coast Digest in March of 2009, and will continue to print 30,000 copies of magazine and make them available at numerous stores in Milwaukee.

Connection
Upon further research, the reason why Outpost went online was because a lot of printing companies failed due to the economic slump. In order to make up for the lost magazines, they decided to go online. Circulation, in terms of magazines, is the number of copies the company distributes for each issue. When Outpost Exchange publishes its next issue and sends it to subscribers, stores, and the Third Coast, they will recognize revenue at the end of every other month since Outpost Exchange publishes a new magazine issue 6 months a year. Revenue will only be recognized when they receive cash. Recognition of revenue from subscribers and from stores around Milwaukee will be the same for the period ended because usually magazines are sold and published online at the very same time.

Reflection
I actually believe the reason why Outpost went online and cut the amount of copies published because it actually increases the amount of circulation for the company. Circulation is the number of copies the company distributes for each issue. Now with the free online print content, more people will read the magazine. More people reading the magazine will require a larger number of circulation. This is the leading factor when used to set advertising rates. The higher the circulation, the more people reading the magazine, the higher the rates will be. By going online for free, Outpost has attracted an extra wave of readers. Now advertisements that are placed on their website and on their magazines will cost more. Even though they have cut down on the amount of printed copies sold, they are earning extra revenue from advertisers. That was a smart move by Outpost.

-Clement Ip