Martha Stewart Living magazine is cutting its guaranteed circulation by 22 percent in the latest sign of how badly its founder’s legal woes are hurting the business.
BEGINNING NEXT YEAR, THE magazine will cut its rate base, the amount of circulation guaranteed to advertisers, from 2.3 million to 1.8 million, Suzanne Sobel, the executive vice president for ad sales, said Friday.
Martha Stewart Living Omnimedia Inc., the parent company of the magazine, has been battered by the scandal surrounding Martha Stewart, who was indicted on charges of obstruction of justice regarding her sale of ImClone Systems stock in December 2001.
Some other magazines, such as the Atlantic Monthly, have also cut their circulation recently in a bid to improve profitability.
But the cut in Martha Stewart Living’s circulation guarantee came despite flat or improving circulation at competing magazines.
Better Homes and Gardens’ circulation held steady in the six months ending in June, according to the Audit Bureau of Circulations, and Real Simple’s circulation jumped 31 percent.
Martha Stewart Living’s circulation edged up 2 percent in the six-month period, according to the Audit Bureau report.
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