Exactly correct. They want the subscription numbers to bolster ad rates, even if they have to give away a few magazines. They probably view it as a long term investment to get some old subscribers back in the fold.
I just bought a subscription to the Hemmings muscle car magazine. I don't know if I would have, if I knew about the Mopar Action resurrection. There's always at least one Mopar in Hemmings, sometimes more. I got a great deal through a school fundraiser. 24 issues for 20 dollars. I'm sure I was buying at least four or five a year off the news stand at around six bucks apiece.