"A magazine with a million subscribers might spend more than a million dollars to deliver a single issue to its subscribers. A million dollars spent on postage, printing, subscription sales, fulfillment, ad sales, sub rights and more. I wouldn't be surprised if the freelance budget for the writers and photographers (the real reason people read the magazine) is less than 15% of the cost, perhaps a lot less.
"The economics of this business are interesting. Millions spent, millions earned, and almost all of it goes to pay for the paper and the friction it brings.
"Now, we fast forward to a world, our world, where the cost of delivery is zero and so we've removed 95% of the costs..." you can read the post here.