IRAN: MAGAZINE PUBLISHER DISCUSSES BUSINESS, SANCTIONS,

C O N F I D E N T I A L SECTION 01 OF 02 RPO DUBAI 000485 SIPDIS E.O. 12958: DECL: 11/10/2019 TAGS: PGOV PHUM IR SUBJECT: IRAN: MAGAZINE PUBLISHER DISCUSSES BUSINESS, SANCTIONS, OPPOSITION DUBAI 00000485 001.2 OF 002 CLASSIFIED BY: Alan Eyre, Director, Iran Regional Presence Office, DOS. REASON: 1.4 (b),(d) ¶1. (C) SUMMARY: The publisher of a monthly computer magazine in Iran discounted the effects of U.S. sanctions on the availability of U.S.-origin computers and products in Iran. She explained that such computers are easily available and relatively inexpensive because the included software is largely pirated. Separately, the IRIG reprimanded the magazine after the presidential election for publishing an article describing how to circumvent government filters and access Facebook. Regardless, and with little apparent concern for the consequences, she has provided additional technical assistance to the opposition. The publisher and her husband founded the magazine 10 years ago and now have an approximate monthly circulation of 40,000. Although they now print a few thousand fewer copies per month relative to last year, she said Iran's economy is 'always in recession' and the recent downturn does not concern her. END SUMMARY. The Magazine's Economics ¶2. (C) The publisher of a monthly computer magazine in Iran in a November 8 discussion with IRPO described her magazine's operations, the effect of sanctions on the computer industry, and her technical assistance to the opposition. Her magazine carries articles reviewing new computer products, how-to guides for existing software, and analysis of the computer industry in Iran, including, for example, a review of internet speeds in Iran. This issue's advertisers are almost all Iran based, though Samsung is running an ad for computer monitors. ¶3. (C) The publisher founded the monthly magazine 10 years ago and attributes its staying power to their decision to distribute the magazine throughout Iran. Whereas most magazines initially focus on Tehran and the larger urban areas, from the beginning she claims they tried to develop national readership. The strategy was successful, allowing them to build a broad base and they now field calls from stores in far-flung locales in Iran seeking to sell their magazine. They publish roughly 40,000 copies per month, sending a few thousand to their subscribers with the remainder distributed on newsstands via a private company. ¶4. (C) The magazine's newsstand price is 1200 tomans (approximately USD 1.20) and she said similar magazines range from 800 tomans to 1500 tomans (approximately USD 0.80 to USD 1.50). Most of the magazine's profit comes from selling advertisements. Personnel costs are low; they have only two permanent employees and most articles are submitted from independent journalists and students. ¶5. (C) Iran's economic downturn seems to have had little effect on their operation. She initially laughed off any negative effects on their business from the slowdown in Iran's economy, commenting that Iran's economy is 'always in recession' and companies simply make do. But she then admitted that their circulation has dropped by a few thousand copies per month since last year. Her personal income though is roughly USD 7000 per month - quite high relative to other Iranians. Sanctions Do Not Limit Computer Availability ¶6. (C) The magazine's current issue reviews several models of inexpensive laptops available worldwide, including a few U.S. brands. The publisher said that all of the models may not be available in Iran but, generally, U.S. sanctions do little to limit the availability of U.S. computer products. Such computers may even be cheaper in Iran, she said, because all of the included software - she mentioned Microsoft and Adobe products specifically - is pirated and consequently costs little. Aid to the "Green Movement"? DUBAI 00000485 002.2 OF 002 ¶7. (C) Ahead of Iran's presidential election in June, the magazine covered the government's decision to allow access to Facebook and social media websites in Iran. After the election they covered the IRIG's reversal - access to Facebook was once again blocked. However, they also included instructions on how to circumvent government filters to access Facebook. After the issue's distribution, she received a call from a friend employed in the Ministry of Islamic Culture and Guidance, who instructed her to avoid publishing such material in the future (NOTE: Government censors review certain publications such as books prior to their publication whereas magazines and newspapers generally are reviewed only after publication. END NOTE.) The magazine was not otherwise punished, which she attributed to the magazine's apolitical nature and lack of other offenses. ¶8. (C) They have not published similar content since but have not shied away from providing technical assistance to the "Green Movement." She said they have received calls and met with individuals requesting technical assistance, particularly in overcoming IRIG internet filtering, but also in other areas. (NOTE: It is not clear if she simply deemed all those seeking help to be members of the "Green Path" opposition or if she met with individuals actually associated with the movement. END NOTE.) She was somewhat strangely unconcerned with the potential consequences of providing such assistance, commenting that she has not participated in the protests and is not political. ¶9. (C) COMMENT: The publisher's comments offer some insight into a few areas of interest. The easy availability of U.S.-origin items despite sanctions is consistent with other anecdotal reporting, though such goods are generally more expensive in Iran. END COMMENT. EYRE