MEDIA

Hearst to Raise Ad Rates 5%: The New York-based company also said it will raise prices and slash circulation by 10% in the sharpest response yet by a magazine publisher to rising paper costs. In an internal memo, the publisher of 13 titles including Esquire, Harper’s Bazaar and Popular Mechanics said its paper costs have risen 37% from a year ago and that more increases are expected. Hearst Corp. also said it will charge 18% to 33% more for its magazines on the newsstand and 7% to 13% more for subscriptions. As a result, Hearst is adjusting its rate base, or the number of subscribers guaranteed to advertisers, because of an expected falloff in readership. “Marginal readers have no value to publishers unless supported by advertisers,” Hearst said.