Paywalls ftw?
posted 1 year agoAccording to WSJ, New York Times is getting ready to introduce subscription packages for their online content. The digital bundle that includes the Times’ iPad app and online access is supposed to cost $20/month, and web-only less than half that. The math looks simple: The newspaper’s current 30m unique visitors generate $100m/year in ad revenue. Targeting “heavy users” (15% of all visitors) and achieving 20% among those in 1 year charging $10/month or $120/year, NY Times can expect to make $108m in subscription fees. While there will be some drop in advertising revenues, it is clear to see why NY Times is so motivated to test this new system. On the flip side, the assumptions may not hold and they may end up with subscription revenues at low double digits - like News Corps’ Times of London which went down that path last year and gained 50k subscribers in 3 months.
Either way, I salute this experiment as a crucial step in making Web a more viable business environment.
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- paywall •
- advertising •
- web business models •
- freemium •
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