Did Time Magazine Lie to Pad Circulation?
Report; Posted on: 2005-09-26 14:45:06
Mainstream media is losing influence to alternative media.
by Mark Harrington and Robert E. Kessler
A year-long probe of magazine circulation practices that began with inquiries into a Valley Stream news distributor has reached at least one giant of the industry - Time Inc.
The company, publisher of scores of magazines including the flagship Time magazine, acknowledged Friday that it had been subpoenaed by federal prosecutors in Brooklyn looking into so-called sponsored sales of periodicals.
"We have received a subpoena," said Time spokeswoman Ali Zelenko. "Time Inc. is fully cooperating with the investigation."
Sources said federal investigators are looking into whether inflated circulation techniques criminally defrauded advertisers and stockholders: advertisers because they were paying rates based on larger circulation than magazines and newspapers actually distributed, and stockholders because profits and, thus, the stock prices, were inflated. No magazines have been accused of wrongdoing so far.
Newsday, itself under investigation for inflated newspaper circulation practices, first reported on the related magazine-industry probe in March. The federal investigation of magazine circulation stems from practices at Inflight Newspapers & Magazines Inc., a company that once billed itself as the largest distributor of periodicals in the world.
( http://www.nationalvanguard.org/story.php?id=6278 )
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