FORM 10-Q

                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

        [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934
                                   
           For the quarterly period ended December 31, 1995
                                   
                                  OR
                                   
       [  ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934
                                   
           For the transition period from _______ to _______


                    Commission file number: 1-10434


                 THE READER'S DIGEST ASSOCIATION, INC.
        (Exact name of registrant as specified in its charter)

                   Delaware                   13-1726769
        (State or other jurisdiction of    (I.R.S. Employer
        incorporation or organization)      Identification
                                                 No.)
                                                   
            Pleasantville, New York           10570-7000
        (Address of principal executive       (Zip Code)
                   offices)
                       

                            (914) 238-1000
         (Registrant's telephone number, including area code)

            ______________________________________________

       Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.  Yes [X]  No [  ]

       As of January 31, 1996, the following shares of the
registrant's common stock were outstanding:

Class A Nonvoting Common Stock, $0.01 par value:  86,178,411 shares
Class B Voting Common Stock, $0.01 par value:     21,716,057 shares



                                                   Page 1 of 20 pages.
                                                                      
                                   
                 THE READER'S DIGEST ASSOCIATION, INC.
                                   
                          Index to Form 10-Q
                                   
                           December 31, 1995


Part I - Financial Information                    Page No.

The Reader's Digest Association, Inc. and Subsidiaries
Financial Statements (unaudited):

 Consolidated Condensed Statements of Income
  for the three and six-month periods
  ended December 31, 1995 and 1994                     3

 Consolidated Condensed Balance Sheets
  as of December 31, 1995 and June 30, 1995            4

 Consolidated Condensed Statements of Cash Flows
  for the six-month periods ended
  December 31, 1995 and 1994                           5

 Notes to Consolidated Condensed Financial Statements  6

Management's Discussion and Analysis
 of Financial Condition and Results of Operations      8


Part II - Other Information                            13

                                   
        THE READER'S DIGEST ASSOCIATION, INC. AND SUBSIDIARIES
              CONSOLIDATED CONDENSED STATEMENTS OF INCOME
     Three and six-month periods ended December 31, 1995 and 1994
                 (in millions, except per share data)
                              (unaudited)

<TABLE>
<CAPTION>                                                                                         
                               Three-month period ended        Six-month period ended
                                     December 31,                    December 31,
                                 1995          1994            1995            1994
                                                                                                   
<S>                            <C>             <C>              <C>            <C>    
Revenues                       $  918.6        $  855.6         $ 1,649.1      $1,566.4
Product, distribution and                                                                 
 editorial expense                312.4           279.3             509.2         563.3
Promotion, marketing and                                                                  
 administrative expense           461.8           415.4             794.7         859.6
                                                                                          
Operating profit                  144.4           160.9             262.5         226.2

Other income, net                   4.8             7.0               7.9          13.2
Income before provision for                                                               
 income taxes                     149.2           167.9             275.7         234.1
Provision for income taxes         54.4            62.8              85.4         103.3

Net income                     $   94.8        $  105.1         $   148.7      $  172.4

Earnings per share             $   0.88        $   0.93         $    1.37      $   1.52
Average common shares                                                                     
 outstanding                      107.9           113.0             113.2         107.9

</TABLE>


See accompanying notes to consolidated condensed financial statements.


                                   
        THE READER'S DIGEST ASSOCIATION, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED BALANCE SHEETS
               As of December 31, 1995 and June 30, 1995
                             (in millions)
                              (unaudited)

<TABLE>
<CAPTION>

                                              December 31,          June 30,
                                                  1995                1995
<S>                                          <C>                  <C>
Assets                                                                
Cash and cash equivalents                     $ 156.0             $  214.6
Short-term investments                           88.2                 93.0
Receivables, net                                668.1                396.4
Inventories                                     225.7                188.6
Prepaid expenses and other current assets       247.9                218.5

Total current assets                          1,385.9              1,111.1

Marketable securities                           104.7                224.5
Property, plant and equipment, net              258.7                256.6
Other noncurrent assets                         371.7                366.5

Total assets                                 $2,121.0             $1,958.7

Liabilities and stockholders' equity                                  
Accounts payable                              $ 237.4             $  224.8
Accrued expenses                                351.3                340.2
Income taxes payable                            116.2                 97.5
Unearned revenue                                451.3                391.7
Other current liabilities                        21.0                 17.9

Total current liabilities                     1,177.2              1,072.1

Other noncurrent liabilities                    274.9                245.8

Total liabilities                             1,452.1              1,317.9

Capital stock                                    28.0                 29.5
Paid-in capital                                 133.7                118.3
Retained earnings                             1,149.8              1,093.5
Net unrealized gains on certain investments       4.5                  5.1
Foreign currency translation adjustment         ( 6.2)               ( 0.3)
Treasury stock, at cost                       ( 640.9)             ( 605.3)

Total stockholders' equity                      668.9                640.8

Total liabilities and stockholders' equity   $2,121.0             $1,958.7

</TABLE>



See accompanying notes to consolidated condensed financial statements.
                                   
                                   
        THE READER'S DIGEST ASSOCIATION, INC. AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
          Six-month periods ended December 31, 1995 and 1994
                             (in millions)
                              (unaudited)

<TABLE>
<CAPTION>
                                                     Six-month period ended
                                                          December 31,
                                                      1995            1994
<S>                                                 <C>             <C>         
Cash flows from operating activities:
Net income                                          $ 148.7         $ 172.4
Depreciation and amortization                          23.7            21.7
Other, net                                          ( 193.9)        ( 102.7)

Net change in cash due to operating activities       ( 21.5)           91.4

Cash flows from investing activities:                            
Proceeds from maturities and sales of short-term                            
 investments and marketable securities                272.7           202.9
Purchases of short-term investments and                          
 marketable securities                              ( 136.8)        ( 109.8)
Other, net                                           ( 40.5)         ( 31.1)

Net change in cash due to investing activities         95.4            62.0

Cash flows from financing activities:                            
Dividends paid                                       ( 92.4)         ( 85.8)
Common stock repurchased                             ( 42.3)         ( 88.9)
Other, net                                              2.7             5.6

Net change in cash due to financing activities      ( 132.0)        ( 169.1)

Effect of exchange rate changes on cash               ( 0.5)            4.5

Net change in cash and cash equivalents              ( 58.6)         ( 11.2)

Cash and cash equivalents at beginning of period      214.6           183.2
Cash and cash equivalents at end of period          $ 156.0         $ 172.0

</TABLE>


See accompanying notes to consolidated condensed financial statements.


                                   
        THE READER'S DIGEST ASSOCIATION, INC. AND SUBSIDIARIES
         NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 (in millions, except per share data)
                              (unaudited)

(1)  Basis of Presentation

The  company reports on a fiscal year beginning July 1.  The  three-
month periods ended December 31, 1995 and 1994 are the second fiscal
quarters of fiscal year 1996 and fiscal year 1995, respectively.

The  accompanying consolidated condensed financial  statements  have
not  been  audited,  but  in the opinion of  management,  have  been
prepared in conformity with generally accepted accounting principles
applying   certain  judgments  and  estimates  which   include   all
adjustments   (consisting  only  of  normal  recurring  adjustments)
considered necessary to present fairly such information.   Operating
results for any interim period are not necessarily indicative of the
results  for an entire year due to the seasonality of the  company's
business.

(2)  Change in Presentation

In  the  current  year  the  company reclassified  certain  costs  and
expenses  in the Consolidated Condensed Statements of Income  to  more
closely reflect its business and internal reporting practices.   There
was  no impact on operating profit.  Additionally, certain prior  year
amounts  in  the  company's Consolidated Condensed Balance  Sheet  and
Consolidated  Condensed Statement of Cash Flows have been reclassified
to conform with the current year's presentation.

(3)  Earnings Per Share

Earnings  per  share  is  computed  by  dividing  net  income,  less
preferred stock dividend requirements, of $0.3 in each of the three-
month  periods ended December 31, 1995 and 1994 and $0.7 in each  of
the  six-month  periods ended December 31,  1995  and  1994  by  the
weighted  average  number of common shares  outstanding  during  the
period.

(4)  Inventories
<TABLE>
<CAPTION>
                                    December 31,             June 30,
                                       1995                    1995
<S>                                 <C>                      <C>                                                          
Raw materials                       $   42.9                 $  32.4
Work-in process                         20.5                    24.7
Finished goods                         162.3                   131.5
                                    $  225.7                 $ 188.6
</TABLE>

(5)  Segment Information
<TABLE>
<CAPTION>

                                     Three-month period ended           Six-month period ended
                                           December 31,                     December 31,
                                    1995                1994              1995           1994
<S>                                <C>                <C>                <C>          <C>    
BUSINESS SEGMENTS                                                                              
Reader's Digest Magazine           $ 190.3            $  186.7           $   367.7    $   358.5
Books and Home Entertainment         592.9               556.0             1,108.4      1,058.2 
Products                                                                                       
Special Interest Magazines            25.8                24.6                45.8         43.4
Other Businesses                     109.6                88.3               127.2        106.3

Total revenues                     $ 918.6            $  855.6           $ 1,649.1    $ 1,566.4

GEOGRAPHIC AREAS                                                                               
United States                      $ 402.3            $   355.3          $   692.0    $   624.0
Europe                               390.9                383.2              728.6        726.6
Other Markets                        125.4                117.1              228.5        215.8

Total revenues                     $ 918.6            $   855.6          $ 1,649.1    $ 1,566.4

</TABLE>
                                   

(6)Subsequent Event

In January 1996, the company announced a plan to realign and
streamline its operations and processes and better position itself to
achieve its strategic growth objectives. The plan consists principally
of streamlining the company's organizational structure by reducing the
worldwide workforce by approximately 15%, the strategic repositioning
of the special interest magazines group and the reevaluation of
certain business arrangements that is expected to result in contract
terminations and asset write-downs.  In addition, an accrual will be
recorded for various claims against the company.  A charge of up to
$225.0  will be reflected in other operating items in the Consolidated
Condensed Statement of Income for the period ended March 31, 1996.

                                   
                 The Reader's Digest Association, Inc.
                 Management's Discussion and Analysis
           of Financial Condition and Results of Operations
                 (In millions, except per share data)

Results of Operations

In  January  1996,  the  company announced a  plan  to  realign  and
streamline  its operations and processes and better position  itself
to  achieve  its  strategic  growth objectives.  The  plan  consists
principally  of streamlining the company's organizational  structure
by  reducing  the  worldwide  workforce by  approximately  15%,  the
strategic repositioning of the special interest magazines group  and
the  reevaluation of certain business arrangements that is  expected
to  result  in  contract  terminations and  asset  write-downs.   In
addition, an accrual will be recorded for various claims against the
company.   A  charge  of up to $225.0  will be  reflected  in  other
operating  items in the Consolidated Condensed Statement  of  Income
for  the  period  ended March 31, 1996.  Since the  impact  of  this
charge  will  be reflected in third quarter results, the  discussion
below (except as noted) excludes the effect of these items.

Three-Month Period Ended December 31, 1995 Compared With Three-Month
Period Ended December 31, 1994

Financial Statement Presentation
In  the  current  year, the company reclassified certain  costs  and
expenses in the Consolidated Condensed Statements of Income to  more
closely  reflect  its  business  and internal  reporting  practices.
There  was  no  impact  on operating profit.  Additionally,  certain
prior  year amounts in the company's Consolidated Condensed  Balance
Sheet and Consolidated Condensed Statement of  Cash Flows have  been
reclassified to conform with the current year's presentation.

Revenues/Operating Profit
Worldwide revenues for the second quarter of 1996 increased  7%,  to
$918.6 compared with the second quarter of 1995.  Higher revenues in
all   geographic  areas,  most  significantly  the  United   States,
contributed  to  this increase. The segments that were  the  primary
contributors  to this 7% increase were Books and Home  Entertainment
Products and Other Businesses representing approximately 4% and  2%,
respectively.

Worldwide  operating profit decreased 10% to $144.4  in  the  second
quarter of 1996, compared with $160.9 in the second quarter of 1995.
This $16.5 decrease was primarily because of approximately $18.0  in
higher  global paper and postage costs, performance in the company's
European  operations  and ongoing investments in  existing  and  new
businesses.   These  factors  were  partially  offset  by  increased
revenues.

Other Income, Net
Other  income, net for the second quarter of 1996 decreased to  $4.8
compared with $7.0 a year ago.  This decrease was primarily  because
of  lower interest income ($5.5 in 1996 compared with $9.4 in 1995),
partially offset by the gain on sale of certain securities ($3.6  in
1996 compared with $0.7 in 1995).

Earnings Per Share
Earnings  per  share declined 5% to $0.88 in the second  quarter  of
1996,  compared with $0.93 for the same period in 1995. The  decline
in  earnings per share was lower than the decline in net income  due
to  the  reduction in outstanding shares under the  company's  share
repurchase program.

Income Taxes
The  company  reduced its overall effective tax  rate  to  36.5%  in
fiscal 1996 from 37.5% in 1995.  This decrease was attributable to a
favorable   settlement  relating  to  prior  years.    The   company
anticipates that, excluding the effect of the third quarter  charge,
the effective tax rate will remain at 36.5% for the remainder of the
year.   The third quarter charge is expected to result in  a  higher
effective tax rate.


Business Segments

Reader's Digest Magazine
Revenues  for Reader's Digest Magazine increased 2%, to $190.3,  for
the  second  quarter of 1996 from $186.7 in the  second  quarter  of
1995.  This increase was due primarily to an increase in advertising
revenue.  The  increase in advertising revenues was attributable  to
higher  revenues  in the United States offset by  lower  advertising
revenue  in  Europe.   Globally,  approximately  two-thirds  of  the
increase  in  advertising revenue was due to rate and one-third  was
due to pages. Circulation revenue remained about even as a result of
higher subscription pricing offset by lower paid copies.   Operating
profit  for Reader's Digest Magazine decreased significantly  during
the second quarter of 1996 compared with the same period a year ago.
The  effect  of  increased revenues was more than offset  by  higher
paper and postage costs and increased promotional spending to retain
high-quality subscribers who purchase the company's other products.

Books and Home Entertainment Products
Revenues for Books and Home Entertainment Products increased 7%,  to
$592.9,  for the second quarter of 1996 from $556.0 for  the  second
quarter of 1995. Excluding the effect of changes in foreign currency
exchange rates, revenues increased 5% compared with the prior  year.
This  increase  was  primarily due to increased unit  sales  in  the
United States.  Notably, global revenues for music, series books and
video  products  reported healthy gains, partially offset  by  lower
general  books revenues, compared with the same period a  year  ago.
Operating profit for Books and Home Entertainment Products decreased
in  1996 compared with 1995 principally due to lower response  rates
and performance in Europe.

Special Interest Magazines
Revenues  for Special Interest Magazines increased 5%, to $25.8  for
the  second  quarter of 1996 from $24.6 for the  second  quarter  of
1995.   This  higher  revenue was attributable  to  an  increase  in
circulation  partially  offset by lower  advertising  revenue.   The
increase  in  circulation revenue was about equally  due  to  higher
circulation  levels  and  subscription  pricing.   The  decline   in
advertising  revenue  was a result of lower  advertising  pages  and
rates.  Operating profit increased in 1996 compared with 1995 due to
higher  revenues,  partially offset by increased paper  and  postage
costs.


Geographic Areas

United States
Revenues in the United States increased from $355.3 to $402.3, or by
13%,  in the second quarter of 1996 compared with the second quarter
of  1995 of which approximately 9% and 3% were attributable to Books
and  Home Entertainment Products and Other Businesses, respectively.
Within  Books and Home Entertainment Products, virtually all product
lines  reported revenue increases.  Music products and series  books
performed  particularly well in the second quarter of 1996  compared
with  1995  due  primarily to the launch of a new  illustrated  book
series  and  increased  membership in  music  series.   The  revenue
increase  in Other Businesses  was due to higher sales at  QSP.  The
increase  in  advertising pages for Reader's Digest   magazine  also
contributed  to  the  overall revenue growth in the  United  States.
Operating   profit   increased  primarily  because   of    increased
revenues, which were partially offset by the effect of higher  paper
and postage costs.

Europe
Revenues in Europe increased from $383.2 to $390.9, or by 2%, in the
second  quarter  of 1996 compared with the second quarter  of  1995.
Excluding the favorable effects of foreign currency exchange  rates,
revenues  declined 3%.  Operating profit decreased significantly  in
1996  compared with 1995.  These results reflect a general  weakness
in  the  European  economies  as well as  the  company's  deliberate
investment  in restaging its European operations, which  began  last
spring.  This  restaging comprises a program  to  restore  long-term
customer  and revenue growth by reducing the number of mailings  and
mail  quantity,  modifying promotional mailings and  moderating  the
rate  of  price  increases. In addition, the company  believes  that
external factors such as the  national and postal strikes in  France
adversely  affected the second quarter of 1996.  These  factors  and
circumstances resulted in lower performance primarily in  Books  and
Home  Entertainment Products and also in Reader's  Digest  magazine.
Higher paper costs also contributed to the operating profit decline.

Other Markets
Revenues in Other Markets increased from $117.1 to $125.4, or by 7%,
in  the  second quarter of 1996 compared with the second quarter  of
1995.    Excluding  the  unfavorable  effects  of  foreign  currency
exchange  rates, revenues increased 16% due to higher sales  in  all
business segments, particularly Other Businesses and Books and  Home
Entertainment  Products.  The revenue increase in  Other  Businesses
was  due  to the acquisition of QSP Canada.  Within Books  and  Home
Entertainment Products, excluding the unfavorable effects of foreign
currency   exchange  rates,  all  product  lines  reported   revenue
increases  due primarily to a higher priced product mix.  Music  and
Video products performed particularly well this quarter compared  to
the  same  period  a year ago.  Operating profit decreased  in  1996
compared with 1995, due primarily to higher paper costs, investments
in  new  countries  and the unfavorable effects of foreign  currency
exchange rates.

Corporate Expense
Corporate  expense increased to $17.2, compared with  $16.4  in  the
second  quarter  of 1995, principally due to the timing  of  certain
expenses.


Six-Month  Period  Ended December 31, 1995 Compared  With  Six-Month
Period Ended December 31, 1994

Revenues/Operating Profit
Worldwide revenues for the six-month period ended December 31,  1995
increased  5%, to $1,649.1 compared with the six-month period  ended
December  31, 1994.  Higher revenues in the United States and  Other
Markets,  along  with  the favorable effect of  changes  in  foreign
currency  exchange rates contributed to this increase.  The segments
that  were  the primary contributors to this 5% increase were  Books
and  Home  Entertainment Products and Other Businesses  representing
approximately 3% and 1%, respectively.

Worldwide  operating profit decreased 14% to $226.2 in the six-month
period  ended December 31, 1995, compared with $262.5 for  the  same
period  a  year ago.  This $36.3 decrease was primarily  because  of
approximately  $32.0 in higher global paper and  postage  costs  and
performance  in  the  company's  European  operations,   which  were
partially  offset by increased revenues and the favorable effect  of
changes in foreign currency exchange rates.

Other Income, Net
Other  income, net for the six-month period ended December 31,  1995
decreased to $7.9 compared with $13.2 a year ago.  This decrease was
primarily  because of lower interest income ($11.7 in 1996  compared
with  $20.4  in 1995), partially offset by lower expense related  to
losses  on foreign exchange transactions and hedging activity  ($4.0
in  1996  compared with $6.4 in 1995) and the gain on sale of  short
term  investments and certain securities ($3.6 in 1996 compared with
$1.4 in 1995).

Income Taxes
The  company  reduced its overall effective tax  rate  to  36.5%  in
fiscal 1996 from 37.5% in 1995.  This decrease was attributable to a
favorable   settlement  relating  to  prior   years.   The   company
anticipates that, excluding the effect of the third quarter  charge,
the effective tax rate will remain at 36.5% for the remainder of the
year.   The third quarter charge is expected to result in  a  higher
effective tax rate.


Earnings Per Share
Earnings  per  share declined 10% to $1.37 for the six-month  period
ended December 31, 1995, compared with $1.52 for the same period  in
1994.  The decline in earnings per share was lower than the  decline
in  net income due to the reduction in outstanding shares under  the
company's share repurchase program.

Business Segments

Reader's Digest Magazine
Revenues  for Reader's Digest Magazine increased 3%, to $367.7,  for
the six-month period ended December 31, 1995 from $358.5 for the six-
month  period  ended December 31, 1994.  This increase  was  due  to
increases  in advertising and circulation revenue. The  increase  in
advertising revenues was attributable to increased advertising pages
and  rates  primarily  in  the  United States.  Circulation  revenue
benefited  from the favorable effect of changes in foreign  currency
exchange  rates.   Operating  profit for  Reader's  Digest  Magazine
decreased  significantly compared with the same period a  year  ago.
The  effect of higher revenues was more than offset by higher  paper
and postage costs and increased promotional spending to retain high-
quality subscribers who purchase the company's other products.

Books and Home Entertainment Products
Revenues for Books and Home Entertainment Products increased 5%,  to
$1,108.4,  for  the six-month period ended December  31,  1995  from
$1,058.2 for the six-month period ended December 31, 1994. Excluding
the  effect of changes in foreign currency exchange rates,  revenues
increased  2%  compared  with the prior  year.   This  increase  was
primarily  due  to  increased  unit  sales  in  the  United  States.
Notably, global revenues for series books,  music and video products
reported  healthy  gains, partially offset  by  lower  revenues  for
general  books.   Operating profit for Books and Home  Entertainment
Products  decreased  in 1996 compared with 1995 principally  due  to
performance in Europe.

Special Interest Magazines
Revenues  for Special Interest Magazines increased 6%, to $45.8  for
the six-month period ended December 31, 1995 from $43.4 for the same
period a year ago.  This increase was primarily attributable  to  an
increase  in  circulation  volume  and  rate.   The  operating  loss
decreased in 1996 compared with 1995 due to the increase in revenues
which more than offset higher paper and postage costs.


Geographic Areas

United States
Revenues in the United States increased from $624.0 to $692.0, or by
11%,  in  1996  compared  with 1995 of which  approximately  8%  was
attributable to Books and Home Entertainment Products.  Within Books
and  Home Entertainment Products, all product lines reported revenue
increases.   The decrease in operating profit in 1996 compared  with
1995 was due to higher paper and postage costs, partially offset  by
higher revenues.

Europe
Revenues  in  Europe were relatively flat ($728.6 in  1996  compared
with  $726.6 in 1995).  Excluding the favorable effects  of  foreign
currency  exchange  rates, revenues declined 6%.   Operating  profit
decreased significantly in 1996 compared with 1995.  These decreases
were   due  primarily  to  lower  performance  in  Books  and   Home
Entertainment Products and also in Reader's Digest magazine.  Higher
paper costs also contributed to the operating profit decline.

Other Markets
Revenues in Other Markets increased from $215.8 to $228.5, or by 6%,
in  1996  compared with 1995.  Excluding the unfavorable effects  of
foreign  exchange, revenues increased 14% primarily due to sales  of
Books  and Home Entertainment Products, most notably music products.
Also  contributing to this increase was Other Businesses due to  the
acquisition  of  QSP  Canada.  Operating profit  decreased  in  1996
compared  with 1995.  The decrease in operating profit was primarily
attributable to higher paper costs, investments in new countries and
the   unfavorable  effects  of  foreign  currency  exchange   rates,
partially offset by the increase in revenues.

Corporate Expense
Corporate  expense decreased to $28.9, compared with $33.1  for  the
six-month  period  ended December 31, 1995, due  to  the  timing  of
certain expenses and a reduction in outside consulting fees.

Forward-Looking Information

As  mentioned above, in January 1996 the company announced a plan to
realign  and  streamline  its operations and  processes  and  better
position  itself  to  achieve its strategic growth  objectives.  The
savings  from  these  actions  will help  fuel   investment  in  the
company's  long  term  growth initiatives and  is  not  expected  to
enhance earnings in fiscal 1996 or 1997.

The  company previously reported that it will incur about  $50.0  in
higher  paper  and  postage  costs  in  fiscal  1996.   The  company
continues  to develop new ways to offset part of these higher  costs
through   a   combination  of  prudent  pricing   and   productivity
improvements.  The company has elected not to fully and  immediately
pass  these  increases  on to its customers through  higher  prices.
Higher paper and postage costs and increased investment spending are
expected to affect results through the remainder of fiscal 1996.

The  company  has  implemented a program  to  restore  customer  and
revenue growth in Europe by reducing the number of mailings and mail
quantity, modifying its promotional mailings and moderating the rate
of price increases.  The company's strategic actions are expected to
provide initial benefits, in the form of improving customer response
rates,   by the end of fiscal 1996, with improved financial  results
in fiscal 1997.   Excluding the third quarter charge, and contingent
on  Europe's progress, the company  expects earnings per share  will
be up for the full year fiscal 1996 as compared with 1995.  Performance 
in the European group is subject to a  number of  significant  variables  
and  as  it  is  the  company's  largest operating  group, overall 
company earnings per share for  full  year fiscal 1996 are contingent 
on this group's progress.

The company seeks to maximize total long-term return to shareholders
and  believes that through a combination of investment  in  existing
businesses and new strategic ventures and alliances it will be  able
to  achieve  double digit earnings per share growth  over  the  long
term.

This section contains forward looking statements.  Actual events and
financial  results in both the short and long term could  differ  in
material  respects  from the events and financial results  described
above.   Factors that may cause events or results to differ  include
the  level and rate of progress in the company's program to  improve
results in its European business, the effect of worldwide paper  and
postage costs and the ability of the company to achieve earnings per
share growth through internal investment, strategic alliances, joint
ventures and other methods.  The success of the company's program in
Europe is in turn dependent on factors such as the effectiveness  of
the  company's  marketing  strategies to improve  customer  response
rates, and general economic conditions.

Liquidity and Capital Resources

December 31, 1995 Compared With June 30, 1995
Cash  and  cash  equivalents, short-term investments and  marketable
securities  decreased $183.2 to $348.9 at December  31,  1995.   The
decrease results from dividend payments of $92.4, the repurchase  of
Class A nonvoting common stock, at a cost of $42.3, and cash used by
operations  of $21.5.  In addition, the Company also expended  $40.8
for  investments  in  strategic alliances and capital  expenditures.
Unrealized gains on short-term investments and marketable securities
were $7.1 and $8.1 at December 31 and June 30, 1995, respectively.

In  the second quarter of fiscal 1996, the company paid a $0.45  per
share  dividend  on its common stock, representing a  13%  increase,
compared with $0.40 per share a year ago.  At the current rate,  the
company will pay a total dividend of $1.75 per share in fiscal  1996
compared with $1.55 in fiscal 1995.

The company repurchased 0.9 shares of Class A nonvoting common stock
in  fiscal  1996.    The company has repurchased approximately  14.5
shares,  through  December 31, 1995, since  its  first  program  was
announced in February 1992.

The  company believes that its liquidity, capital resources and cash
flow  are  sufficient  to fund normal capital expenditures,  working
capital  requirements, the payment of dividends  and  the  company's
share  repurchase program.  The company also believes its liquidity,
capital  resources and cash flow are sufficient to  finance  present
plans  to  expand  existing product lines in  existing  markets,  to
identify  and  develop new products and markets and  to  enter  into
strategic alliances and make small acquisitions.
                                   
                      PART II.  OTHER INFORMATION

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K.

(a)  Exhibits

           10.22  Agreement dated as of November 14, 1995 
                  between the registrant and an executive officer.
                  [4 pages] [Management contract or compensatory plan.]

           27   Financial Data Schedule.  [1 page]


(b)  Reports on Form 8-K

     No reports on Form 8-K were filed for the quarter for which this
     report is filed.



                              SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.






                                        The Reader's Digest
Association, Inc.
                                        (Registrant)



Date:  February 13, 1996   By:          Stephen R. Wilson
                                        Stephen R. Wilson
                                        Executive Vice President and
                                        Chief Financial Officer



                                        George S. Scimone
                                        George S. Scimone
                                        Vice President and Controller
                                        Chief Accounting Officer


                                   
                                   
                             EXHIBIT INDEX
                                   
                                   
                                                              
Exhibit                                                     Page
10.22   Agreement dated as of November 14, 1995 between     
        the registrant and an executive officer.            16
        
27      Financial Data Schedule                             20