> the electronic version is quickly pirated and easily available around the world each month ....... We are a small company, and our survival depends not only on advertising but on the subscription fees
Find a way to track the piracy, then go to the advertisers and say "Hey! Look at how many people are reading our magazine!". Actually, just search the /. history, there are many people who are willing to track this kind of thing. The subscribers will continue to pay if they actually care about the content, and are in no way inconvenienced. As an example, I subscribe to the new Linux Journal e-Magazine version. I used to subscribe to the print version as well. However, I never really read them from cover to cover, I just liked them to be there when I wanted them. When they switched over to online only, I stopped subscribing, because logging into their site to read it meant it wasn't "just there when I wanted it". Eventually I bought a tablet and renewed my subscription (now online only). I have been pretty happy so far, but every now and then the DRM starts to annoy me (taking too long to load due to a huge complex network between my tablet and their servers that spans ISP's, countries and continents), so I am considering dropping them and just carrying on reading advertising sponsored sites whenever it suits me.
I think one of the biggest dichotomies between online advertising and print advertising now-a-days is that advertisers have made us hate adverts because they think we hate adverts. When I buy a newspaper, after reading the front page articles, I pull out the advertising section to see if there is anything that may help me save a few bucks in the next couple of days. It is the original "GroupOn". With online content now, sites throw adverts in your face, which means you either ignore them (normal people), or just put up ad-block (normally awesome people).
P.S I work for a company that could be construed as an advertising company in the Minority Report sense