The case examines the evolution of the Reader's Digest magazine since its launch in the early 1920s towards becoming the largest selling magazine in the world, by the 1980s. It explores the reasons behind the subsequent reduction in profitability and fall in subscriber base during the mid-1990s. The case examines the restructuring and magazine redesigning efforts undertaken by the company, to increase profitability and reach during the early 21st century. It also discusses the magazine's future in the light of criticisms faced by the company, on account of the redesigning initiatives and acquisition of Reiman Publications in 2002.

For many avid readers of the largest selling magazine in the history of the world, Reader's Digest (RD), the early 21st century brought in rude shocks. Not only had the flagship product of Readers Digest Association (RDA, US) changed drastically in terms of looks and styling, more importantly, its content just was not the same anymore. The changes were even being viewed by hardcore loyalists of the earlier format as signs of a dear friend wasting away due to some mystery ailment.

Not surprisingly, the global subscriber base of RD came down to 23 million in 2002 from the 1996 level of 28 million. In US, the subscriber base reduced to 12 million in 2002 from the peak level of 18 million in the 1970s. RDA's profits declined steeply between 1996 and 1998. In 1998, RDA reported a net profit of $100 mn as against $392 mn in 1995. The company's revenues decreased by 8% in 1997, coming down to $2.8 bn. Though RD remained the market leader in terms of readership and reach in 2002, analysts were quick to point out that the magazine was certainly on a downward slope.

Reader's Digest magazine, magazine, profitability, reduction, restructuring, redesigning efforts, magazine's future, redesigning initiatives, Reiman Publications, Readers Digest Association (RDA, US), hardcore loyalists, mystery
ailment, global subscriber, revenues, market leader, readership, analysts, acquisition.