Scribble said:why does one only need to exist in Game stores and the other needs more outlets when they are offering essentially the same resource?
Well, look for a moment at the price point - I think you'll find that an issue of Dragon sold for less than half of what one of the Pathfinders does.
That is probably key. The subscription model isn't the crux of it - the price point (and the profit margin per issue) is. A magazine operates hoping to make up in volume what it lacks in cover price. If you cannot manage the volume, the thing has to sell at a higher price, and folks won't buy a magazine at a high price.