Snap Up That Time Warner Stock as Soon as You Can, Kids
A spokeswoman said the magazine had been delivering a substantial bonus above its rate base guarantee last year.It's not hard to imagine the urgent, late-night phone calls from Time Inc. editorial honcho John Huey to EW editor Rick Tetzeli: "Rick! You're killing us with all these new readers! The magazine's just too hot right now. You've got to scale it down before it gets out of hand and we have to raise the rate base."
Rate base is the amount of circulation publishers guarantee to advertisers they will deliver each issue. Publishers would be penalized if they drop below rate base, but wouldn't get increased ad revenue if they exceed the rate base.
"We wanted to bring it back down," she said. "You don't want to pay for those additional copies if you don't need them."
"OK, John, OK. But what more can we do, for crying out loud? We've already brought in Stephen King."
"We've talked about this, Rick. Quizzes. Give me quizzes."