Business

Rolling Stone cancels ‘lifetime’ subscribers’ print issues

Published

4 weeks ago

June 5, 2024

The pages of Rolling Stone, the legendary music magazine kickstarted by Jann Wenner when he was a hippie student, have chronicled rock stars, searing political commentaries, and iconic photography since its inception in the late 1960s. From an 11-year-old Michael Jackson in 1971 to a now-legendary cover photo of a naked John Lennon wrapped around Yoko Ono, shot just hours before the star was shot and killed, the magazine has been there for the major cultural moments of the 20th century.

But the counterculture icon is now trying to adapt to a radically different world than the one in which it was founded—and making some longtime fans mad in the process.

The magazine, which Wenner and local journalist Ralph J. Gleason of the San Francisco Chronicle started on a wild hair, offered a sweet deal in the 2000s as it tried to stay competitive with a growing internet—a lifetime subscription to the print magazine for just $99. But that’s just been changed, too.

In early May, lifetime subscribers received a letter from David Roberson, the magazine’s senior vice president of subscriptions, that states, “we are transitioning the delivery of Rolling Stone’s lifetime subscribers to a digital format. Your final printed copy will be the June 2024 issue.” While the magazine will continue printing physical editions of the magazine, current subscribers, including those who purchased the $99-for-life deal, will now receive digital copies unless they explicitly choose a print subscription, which costs $60 per year.

The electronic edition, the letter states, is “an exact replica of the magazine you can read on your computer, tablet, or phone,” and subscribers will receive reminder emails each time a new issue is published. They will also be able to access a library of issues from the past five years.

Penske Media Corporation, which owns Rolling Stone along with Variety, Deadline.com, and other brands, did not respond to Fortune’s request for comment on lifetime subscribers’ options, or on whether the move signifies any broader changes in its magazine distribution—but these are questions on many readers’ minds.

‘My mother saved them all’

On one Reddit forum, hundreds of users vented about the letter and the magazine’s switch to digital, many bemoaning the changed terms of the deal. The offer to access a digital catalog that dates back just five years—when many subscribers still have physical editions from past decades—added insult to injury.

“Right now I can read 25 years worth of back catalogue,” one user wrote. “I’d like to continue doing that with physical copies of the magazine.”

Another user wrote, “My mother saved them all. I have every copy from about 1990-1994.” Another said, “I’d be requesting a refund, since they want to change the terms of the sale afterwards. Companies need to stop doing this.”

But while infuriating for subscribers, the move might not constitute a breach of contract. The magazine’s ownership changed in 2017, and without a clause that requires future owners to abide by past terms the lifetime subscribers bought into, “the new owner is probably not bound by the lifetime subscription deal, hence, no breach,” Alexandra Roberts, a professor of media and law at Northeastern University School of Law, told Slate.

“There’s no reason to think this wasn’t a valid contract when it was struck,” she told the publication, but added that the magazine may be planning what’s known as an ‘efficient breach,’ or a scenario in which it’s cheaper to pay the damages of a breached contract rather than continue to operate less profitably under its terms.

Of course, publishing a print magazine is much less profitable now than it was decades ago, thanks to the declining profits from advertising and increased costs of paper and mailing. But the turn away from print to digital also highlights the increasingly fleeting nature of media consumption in the 21st century. Just as physical magazines and books have been largely replaced by digital copies, the rise of streaming services for music, movies, and shows has supplanted owning physical records or videos.

Spotify, the world’s largest music streaming service, has radically changed how people access music since its inception in 2006, chartering the path from more physically-rooted modes of listening, like radios and records, to a digital library of millions of tracks, podcasts, and audiobooks that can be listened to instantly with a just few taps of your finger.

Today, the platform has more than 615 million users, including 239 million paid subscribers, in more than 180 markets around the globe—but those users are subject to the whims of Spotify’s catalog, and their access to music varies depending on what artists the platform may have deals with, or not. And the model is far less profitable for artists who use the platform to stream their work—Spotify estimates the average song generates between $0.006 and $0.008 per stream in royalties to artists.

Beyond the price tag, the media industry faces persistent challenges. More than 17,436 media jobs were lost in 2023, which is the highest number of layoffs (excluding layoffs the height of the pandemic) since 2009, according to data from Challenger, Gray & Christmas, a global research firm that tracks layoffs. As of the end of January this year, there were already 528 new layoffs in the media sector.

Separate from the overall decline of the industry, Rolling Stone has also made some expensive mistakes. Perhaps the most notable mishap includes publishing a now-discredited account of a University of Viriginia student’s alleged gang rape, which paved the way to a costly libel battle in 2014. That was one of the drivers of Wenner’s sale of Wenner Media, which encompassed Rolling Stone, Us Weekly and Men’s Journal, to Penske Media Corporation in two trachens, in 2017 and in 2020.

In an interview with the New York Times, Wenner said he wanted to find a buyer that understands the magazine’s “role in the history of our times, socially and politically and culturally.” That role apparently does not include placating longtime, but likely unprofitable, subscribers.

Lifetime subscribers will receive their final print issue this month, according to the letter sent by Rolling Stone, which did not include instructions on how to subscribe to the print version of the magazine. An annual subscription to a physical copy costs $60 per year and a subscription to both print and digital versions cost $120 per year, which is more than the one-time $99 payment lifetime subscribers paid.

Beyond the price tag, subscribers insist the physical copies have value—and that they’re now being swindled out of their deal.

“I got the lifetime subscription in 2004. I have every issue in my basement,” one Reddit user wrote. Another stated, “the physical issues have value and that is what I paid for 25 years ago,” adding they’re “glad to hear that other people are similarly enraged.”

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Winmill & Co. Inc purchases $86.8k of Bexil Investment Trust shares By Investing.com

Published

6 hours ago

July 2, 2024

Investing.com

In a recent transaction on July 1, Winmill & Co. Inc, an affiliate of the registered investment adviser, made a notable purchase of shares in Bexil Investment Trust (NYSE:BXSY). The transaction involved the acquisition of 6,934 shares at a price of $12.52 per share, amounting to a total investment of approximately $86,813.

The purchase was disclosed in a filing with the Securities and Exchange Commission, which provides public transparency of the trading activities of company insiders and affiliates. Winmill & Co. Inc’s position in Bexil Investment Trust following the transaction stands at 6,934 shares.

The transaction indicates a potential confidence by Winmill & Co. Inc in the future performance of Bexil Investment Trust, although it should be noted that such transactions are not uncommon and can be motivated by a variety of factors. Investors often monitor insider purchases as they may provide insights into the company’s prospects as seen by those closest to its operations.

The filing was signed by Russell Kamerman, acting on behalf of Winmill & Co. Incorporated, and was submitted on July 2, the day following the transaction.

Bexil Investment Trust, represented by the ticker BXSY, is a company that operates within the financial sector, though its specific classification within the industry is not disclosed. The company shares a business address with Winmill & Co. Inc in Rochester, New York.

Investors and market watchers may keep an eye on further filings to gauge whether insiders continue to buy or sell shares, which could indicate their ongoing assessment of the company’s value and prospects.

InvestingPro Insights

Bexil Investment Trust (NYSE:BXSY) has recently seen notable insider activity with Winmill & Co. Inc’s acquisition of shares, suggesting a vote of confidence in the company’s trajectory. According to InvestingPro, Bexil’s revenue in the last twelve months as of Q4 2023 stood at $5.59 million. Despite a challenging period that saw a revenue decline of -15.59% during the same timeframe, the company’s gross profit margin impressively remained at 100%, indicating that it was able to maintain the cost of goods sold at a minimal level relative to its revenue.

Furthermore, Bexil’s adjusted operating income for the last twelve months as of Q4 2023 was reported at $2.53 million, with both basic and diluted earnings per share (EPS) for continuing operations standing at $3.35. This level of profitability, combined with a robust dividend yield of 8.0% as of mid-2024, may offer an attractive proposition for income-focused investors.

The company’s stock has experienced a 20.32% total return over the past year, reflecting a positive market sentiment. In the short term, the one-week price total return has been modest at 0.85%, yet the six-month return has been more significant at 8.66%. These metrics, along with a relatively low average daily volume of 0.03 million USD, may appeal to investors looking for steady performance with lower volatility.

For those interested in delving deeper into Bexil Investment Trust’s financial health and future prospects, InvestingPro provides additional insights. There are more InvestingPro Tips available on the platform, which can be accessed with a special discount using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Business

Tesla surprises with better than expected car sales

Published

9 hours ago

July 2, 2024

Natalie Sherman

Tesla sales, hit by a significant slump earlier this year, may be showing signs of revival.

Elon Musk’s electric car-maker delivered nearly 444,000 vehicles in the three months ended 30 June, up more than 14% from the prior quarter.

That was far more than most analysts had expected – though still down nearly 5% from the same period in 2023.

Tesla has been navigating a slowdown in demand, as high borrowing costs weigh on buyers and competition increases.

It has slashed prices repeatedly to try to win back shoppers, while also introducing low-cost borrowing plans.

But its success in this has been limited.

The firm, which announced plans in April to sack more than 10% of its workforce, has seen sales fall in the first half of the year.

At the start of the year, Tesla blamed its poor performance in part on supply shortages due to shipping disruption in the Red Sea and an alleged arson attack at its factory in Germany.

But analysts say Tesla needs to freshen its line-up, if it hopes to stop rivals from making inroads.

The company started selling its cyber-truck last year but that remains a tiny part of its business. Its mainstream Model 3 sedan was first released in 2017.

Mr Musk, who recently won shareholder support for a record-breaking pay package worth roughly $50bn, has outlined a bright future for the firm, underpinned by self driving and automation.

And despite industry concerns that demand for electric vehicles in the US in recent months has been weaker than anticipated, the sector is still growing globally.

More than one in five cars sold this year around the world are expected to be electric – including nearly half in China and roughly a quarter in Europe, according to a recent outlook from the International Energy Agency (IEA).

Wedbush Securities analyst Dan Ives said he thought the worst was behind Tesla, noting signs of improvement in China, where the government recently announced it would give money to people who trade in older cars in a wider boost for the industry.

“While its been a difficult period for Tesla and the company has been through some significant cost reductions (roughly 10%-15%) to preserve its bottom line/profitability, it appears better days are now ahead,” he wrote in a note to investors on Tuesday.

He said he expected the firm’s upcoming August presentation on robotaxis to drive a new wave of growth.

Shares in the firm jumped more than 6% in morning trade on Tuesday following the news.

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Business

Google emissions jump nearly 50% over five years as AI use surges

Published

10 hours ago

July 2, 2024

Camilla Hodgson

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Google’s greenhouse gas emissions have surged 48 per cent in the past five years due to the expansion of its data centres that underpin artificial intelligence systems, leaving its commitment to get to “net zero” by 2030 in doubt.

The Silicon Valley company’s pollution amounted to 14.3mn tonnes of carbon equivalent in 2023, a 48 per cent increase from its 2019 baseline and a 13 per cent rise since last year, Google said in its annual environmental report on Tuesday.

Google said the jump highlighted “the challenge of reducing emissions” at the same time as it invests in the build-out of large language models and their associated applications and infrastructure, admitting that “the future environmental impact of AI” was “complex and difficult to predict”.

Chief sustainability officer Kate Brandt said the company remained committed to the 2030 target but stressed the “extremely ambitious” nature of the goal.

“We do still expect our emissions to continue to rise before dropping towards our goal,” said Brandt.

She added that Google was “working very hard” on reducing its emissions, including by signing deals for clean energy. There was also a “tremendous opportunity for climate solutions that are enabled by AI”, said Brandt.

Column chart of Million metric tons of carbon dioxide equivalent (tCO2e) showing Google's greenhouse gas emissions have jumped almost half since 2019

As Big Tech giants including Google, Amazon and Microsoft have outlined plans to invest tens of billions of dollars into AI, climate experts have raised concerns about the environmental impacts of the power-intensive tools and systems.

In May, Microsoft admitted that its emissions had risen by almost a third since 2020, in large part due to the construction of data centres. However, Microsoft co-founder Bill Gates last week also argued that AI would help propel climate solutions.

Meanwhile, energy generation and transmission constraints are already posing a challenge for the companies seeking to build out the new technology. Analysts at Bernstein said in June that AI would “double the rate of US electricity demand growth and total consumption could outstrip current supply in the next two years”.

In Tuesday’s report, Google said its 2023 energy-related emissions — which come primarily from data centre electricity consumption — rose 37 per cent year on year, and overall represented a quarter of its total greenhouse gas emissions.

Google’s supply chain emissions — its largest chunk, representing 75 per cent of its total emissions — also rose 8 per cent. Google said they would “continue to rise in the near term” as a result in part of the build-out of the infrastructure needed to run AI systems.

Google has pledged to achieve net zero across its direct and indirect greenhouse gas emissions by 2030, and to run on carbon-free energy during every hour of every day within each grid it operates by the same date.

Bar chart of Million metric tons of carbon dioxide equivalent (tCO2e) showing Most of Google's emissions stem from energy and its supply chain

However, the company warned in Tuesday’s report that the “termination” of some clean energy projects during 2023 had pushed down the amount of renewables it had access to.

Meanwhile, the company’s data centre electricity consumption had “outpaced” Google’s ability to bring more clean power projects online in the US and Asia-Pacific regions.

Google’s data centre electricity consumption increased 17 per cent in 2023, and amounted to approximately 7-10 per cent of global data centre electricity consumption, the company estimated. Its data centres also consumed 17 per cent more water in 2023 than during the previous year, Google said.