Type Subsidiary Number of employees 250 | Founded 1991 Parent organization Time Inc. | |
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Key people Sebastien Bilodeau (CEO) Website www.synapsegroupinc.com Headquarters Stamford, Connecticut, United States | ||
Synapse Group, Inc. is a multichannel marketing company. Synapse is also the largest consumer magazine distributor in the United States, with access to over 700 magazine titles from all the major publishers (including Hearst Corporation, Condé Nast Publications, Meredith Corporation, and Time Inc.). Synapse attracts subscribers for these publications by working through a number of non-traditional marketing channels, including credit card issuers, catalog companies, and airline frequent-flyer programs. Synapse receives universally negative reviews from customers on websites such as Yelp and Better Business Bureau, and has been criticized for their unethical business practices by several reputable publications, including the New York Times.
Contents
History
Synapse Group began in 1991 as NewSub Magazine Service LLC. Founded by Jay S. Walker (who developed Priceline.com) and Michael Loeb, the company began by marketing fixed-term magazine subscriptions through credit card companies. Over the years, NewSub expanded its marketing channels to include retailers, airlines, catalogers, and dot-com companies. In the year 2000, the company changed its name to Synapse Group, Inc.
Continuous Service System
In 1996, NewSub introduced their Continuous Subscription Service system, which would automatically renew subscriptions without consent from customers; at a price far above what those customers initially agreed to pay. The company applied for a patent, which was granted in 2000 to Michael Loeb and Synapse Group, Inc. for "[m]ethod and apparatus for providing open-ended subscriptions to commodity items normally available through term-based subscriptions. The Continuous Subscription Service system is designed to automatically renew subscriptions with or without consent of the customer. "
Acquisition by Time Inc.
In 2000, Time Inc. made its first equity investment in Synapse Group, starting a partnership that would ultimately culminate with the outright purchase of Synapse in 2006. In a 2000 press release from Time Warner, Jeremy Koch (who was Consumer Marketing President at the time) explained, "The marketing of consumer magazines is undergoing substantial change. Our relationship with Synapse is an important part of Time Inc.'s strategy to support the expansion of new and innovative marketing methods."
Operations
Synapse Group is headquartered at 225 High Ridge Road, in Stamford, Connecticut. The company employs over 250 people and has revenues of $400 million.
Divisions
Service Marks
Synapse Group has used a number of service marks over time in association with particular business channels, both for direct sales projects as well as with partner services. These marks include: Synapse Group Inc., Newsub Services, Synapse Solutions, Synapse Retail Ventures, and Magazine Rewards Center. These names often appear on customers' credit card statements for the company's subscription service charges.