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Reader's Digest

American general-interest magazine

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  • 7 chapters

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Global editions of Reader's Digest reach an additional 40 million people in more than 70 countries, via 49 editions in 21 languages. The periodical has a global circulation of 10.5 million, making it the largest paid-circulation magazine in the world.

It is also published in Braille, digital, and audio editions, and in a large-type edition called "Reader's Digest Large Print". The magazine is compact—its pages are roughly half the size of most American magazines. In summer 2005, the company adopted the slogan "America in your pocket" for the U.S. edition. In January 2008, however, it changed the slogan to "Life well shared".

History

Inception and growth

In 1920, Dewitt Wallace married Lila Bell Wallace in Pleasantville, New York. Shortly thereafter, the two would launch Reader's Digest in the basement below a Greenwich Village speakeasy. The idea for Reader's Digest was to gather a sampling of favorite articles on many subjects from various monthly magazines, sometimes condensing and rewriting them, and to combine them into one magazine.

In the 20th century, Reader's Digest maintained a conservative and anti-Communist perspective on political and social issues. The Wallaces initially hoped the journal could provide $5,000 of net income. Wallace's assessment of what the potential mass-market audience wanted to read led to rapid growth. By 1929, the magazine had 290,000 subscribers and had a gross income of $900,000 a year. The first international edition was published in the United Kingdom in 1938. By the 40th anniversary of Reader's Digest, it had 40 international editions, in 13 languages and Braille, and at one point, it was the largest-circulating journal in China, Mexico, Spain, Sweden, Peru, and other countries, with a total international circulation of 23 million.

The first "Word Power" column of the magazine was published in the January 1945 edition, written by Wilfred J. Funk. In December 1952, the magazine published "Cancer by the Carton", a series of articles that linked smoking with lung cancer.

From 2002 to 2006, Reader's Digest conducted a vocabulary competition in schools throughout the US called Reader's Digest National Word Power Challenge. In 2007, the magazine said it would not have the competition for the 2007–08 school year: "...but rather to use the time to evaluate the program in every respect, including scope, mission, and model for implementation."

In 2006, the magazine published three more local-language editions in Slovenia, Croatia, and Romania. In October 2007, the Digest expanded into Serbia. The magazine's licensee in Italy stopped publishing in December 2007. The magazine launched in the People's Republic of China in January 2008. It ceased publishing in China in 2012, due to a lack of sales caused by a relatively high price, a poorly defined audience and low-quality translated content.

For 2010, the US edition of the magazine reduced its publishing schedule to 10 times a year rather than 12, and to increase digital offerings. It also cut its circulation guarantee for advertisers to 5.5 million copies from 8 million. In announcing that decision, in June 2009, the company said that it planned to reduce its number of celebrity profiles and how-to features, and increase the number of inspiring spiritual stories and stories about the military.

Beginning in January 2013, the US edition was increased to 12 times a year.

Its current frequency of publication is 6 times a year.

Business organization and ownership

By the 1950s the Reader's Digest executive leadership included the Editor, Executive Editor, Managing Editors, Book Department, General Business Manager and Director, International Editions. There were several levels of editorial staff including Seniors Editors, Department Editors, Roving Editors, and Associate Editors.

In 1990, the magazine's parent company, The Reader's Digest Association, Inc. (RDA), became a publicly traded corporation. From 2005 through 2010, RDA reported a net loss each year.

In March 2007, Ripplewood Holdings LLC led a consortium of private-equity investors who bought the company through a leveraged buyout for US$2.8 billion, financed primarily by the issuance of US$2.2 billion of debt. Ripplewood invested $275 million of its own money, and had partners including Rothschild Bank of Zürich and GoldenTree Asset Management of New York. The private-equity deal tripled the association's interest payments, to $148 million a year.

On August 24, 2009, RDA announced it had filed with the US Bankruptcy court an arranged Chapter 11 bankruptcy to continue operations, and to restructure the US$2.2 billion debt undertaken by the leveraged buyout transaction. The company emerged from bankruptcy with the lenders exchanging debt for equity, and Ripplewood's entire equity investment was extinguished.

In April 2010, the UK arm was sold to its management. It has a licensing deal with the US company to continue publishing the UK edition. The closure of the UK edition was announced in April 2024.

On February 17, 2013, RDA Holding filed for bankruptcy a second time. The company was purchased for £1 by Mike Luckwell, a venture capitalist and once the biggest shareholder in WPP plc.

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