03/28/2008 02:45 am ET Updated May 25, 2011

$1.99 No More! Celeb Mags Raise Prices 50%

In the latest newsstand test for magazines, celebrity weekly readers are being asked to swallow an unusually steep price hike if they want to keep buying In Touch or Life & Style.

The question
For their publisher, Bauer, the 50% increase to $2.99 from $1.99 answers distributors' complaints over low margins on such cheaply priced titles. But for its competitors and the industry as a whole, the increase also poses a question: Can magazines, even in the industry's hottest category, keep growing quickly despite such a sharp hike?

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