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August 2006

Ask ABC: I've decided to publish an electronic version of my newspaper. Will this electronic edition count as paid? How will it get reported?

An electronic edition is defined as a replica or non-replica of the core (printed) newspaper, delivered electronically.

ABC classifies electronic editions in two different ways:

Replica – This type of electronic edition maintains the same basic identity and content as the core newspaper. It also includes all ROP advertising. An example of a replica electronic edition is a PDF of the actual newspaper.

Non-replica – This version also maintains the same basic identity, but the content may differ. Non-replica editions do not need to include the ROP advertising of the print newspaper or any advertising at all.

Editions
The publisher determines if the electronic product is an “edition” of the newspaper and whether to claim the electronic copies as “paid” circulation.

If the publisher determines that the electronic product is an edition of the newspaper and wants to claim the circulation as paid, then all of the qualification rules for newspapers apply including Rule C 2.4 Separate Editions.

Delivery
An electronic edition can be delivered using either a “push” or a “pull” methodology.

“Push” Method – This method allows subscribers to be notified via e-mail that their current issue is available for download. If a publisher uses the “push” method, all undeliverable e-mails must be accounted for and removed from the paid circulation count.

“Pull” Method – This method allows subscribers to access the electronic edition by logging into a secured Web site.

Qualifying Price
For the electronic edition to count as “paid,” a qualifying price must be paid. In the United States that price is 25 percent of the basic home delivery price.

The qualifying price for an electronic edition is based on the print product’s basic prices for the same term, frequency, and ABC defined zone.

    Scenarios:
  • If a publisher sells only one subscription of a newspaper (electronic or print) then the qualifying price is 25 percent of the basic print home delivery price.

  • If a publisher sells a subscription for both a print edition and an electronic edition, but only intends to count one, either print or electronic, subscription as paid then the qualifying price is 25 percent of the basic print home delivery price.

  • If a publisher sells a subscription for both a print and an electronic edition to the same individual and intends to count both the print and electronic subscriptions as paid, then the qualifying price is 100 percent of the basic print home delivery price for one subscription and 25 percent of the basic print home delivery price for the second subscription. These requirements fall under ABC’s multiple subscription sales rules (Rule C 5.6). If the requirements of Rule C 5.6 are met, then both the print and electronic subscriptions count as paid.
Reporting
Electronic editions are reported as a separate line item in Paragraphs 1, 1A and 2 for U.S. newspapers. Distribution for electronic editions is reported as a column in Paragraph 3 of the Audit Report.

If a newspaper’s electronic edition circulation (replica and non-replica separately or combined) exceeds five percent and is greater than 3,000 copies per issue of the total average paid circulation, the publisher must file a Supplemental Data Report (SDR).

If a newspaper’s electronic edition circulation does not meet the above requirements, publishers may still elect to file an SDR.

Electronic Edition Review
For a review of your electronic edition circulation, forward a copy of your print edition plus access to your electronic edition to your ABC Publisher Relations manager.



Related Links:
Qualifying Electronic Editions as Paid Circulation
Rule C 2.4 Separate Editions
Rule C 1.1 Paid Circulation Defined
Rule C 5.6 Multiple Subscription Sales Rules
Newspaper Reporting Format Tutorial
Supplemental Data Report (SDR) Prototype
ABC Publisher Relations Managers by Region

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