It seems unstable as an approach, but if I'm doing my math correctly, even if they lost 1 out of 4 current weekly subscribers, the News would still be in the black with this new idea. Every loss is $21, every maintain is $30 -- a difference of $9. A loss of one subscriber would mean a loss of $21. A maintaining of three subscribers would mean a gain of $27). Interesting ...
They are losing subscribers at a 10 percent rate under the new pricing plan - and that doesn't account for whatever the rate of decline was before the price hike. This gets really interesting when you see the numbers: DMN circulation fell 9.8 percent from 2008 to 2009 http://freerepublic.com/focus/f-news/2238666/posts
But it fell 9.3 percent from 2007 to 2008 http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-27-2008/0004912004&EDATE=
So they aren't drowning any faster now than they were last year. Of course, regardless of what caused the decline, the drop in readership pushes the demand curve for advertising further to the right. Can a product simultaneously be inferior goods to advertisers and superior goods to readers?
It seems unstable as an approach, but if I'm doing my math correctly, even if they lost 1 out of 4 current weekly subscribers, the News would still be in the black with this new idea. Every loss is $21, every maintain is $30 -- a difference of $9. A loss of one subscriber would mean a loss of $21. A maintaining of three subscribers would mean a gain of $27). Interesting ...
ReplyDeleteThey are losing subscribers at a 10 percent rate under the new pricing plan - and that doesn't account for whatever the rate of decline was before the price hike. This gets really interesting when you see the numbers: DMN circulation fell 9.8 percent from 2008 to 2009 http://freerepublic.com/focus/f-news/2238666/posts
ReplyDeleteBut it fell 9.3 percent from 2007 to 2008
http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-27-2008/0004912004&EDATE=
So they aren't drowning any faster now than they were last year. Of course, regardless of what caused the decline, the drop in readership pushes the demand curve for advertising further to the right. Can a product simultaneously be inferior goods to advertisers and superior goods to readers?