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The NYT and The Athletic

I know this is heresy on SJ, but we can learn several good business lessons from our friends who run college football message board sites. The ones that are turning a profit would never, in a million years, offer this kind of discounted rate. Would agree that this is a very dire sign for them and makes me think cuts could be around the corner.

I don't know if this is a doomsday thing. The Times is trying to protect its subscriber count, which it sells to advertisers, and for every $9.99 discounted rate there are still tons of people who auto-renew at full freight. So perhaps a certain number of the basement rates are built into the financials, and more importantly the customer is still in the count.
 
I don't know if this is a doomsday thing. The Times is trying to protect its subscriber count, which it sells to advertisers, and for every $9.99 discounted rate there are still tons of people who auto-renew at full freight. So perhaps a certain number of the basement rates are built into the financials, and more importantly the customer is still in the count.
That is my thought. How much does it cost to keep me as a customer? Is it better to get $10 or $20 from me than nothing? At least they can still count me.
 
That is my thought. How much does it cost to keep me as a customer? Is it better to get $10 or $20 from me than nothing? At least they can still count me.

It's not even the most desperate attempt to boost the circ numbers. I'm getting Newsday online for 25 cents. FOR SIX MONTHS.
 
But in an era where ad sales aren't what they used to be, is it really all that beneficial to keep a subscriber if takes an 86% price drop to prevent churn? Like, what other business operates that way?
 
I don't know if this is a doomsday thing. The Times is trying to protect its subscriber count, which it sells to advertisers, and for every $9.99 discounted rate there are still tons of people who auto-renew at full freight. So perhaps a certain number of the basement rates are built into the financials, and more importantly the customer is still in the count.
I think the marginal cost of a company adding an electronic subscriber is close to zero. And the subscriber does ad to advertising rate base.

I think the trend in publishing is to keep cutting prices on subscriptions. With the exception of a a few publications with really strong brands like the New York Times and the Wall Street Journal publishers are not able to generate many subscriptions at full price so they must discount.

What I think this means for the industry is that very few newspapers will be able to generate enough revenues to survive and the losers will roll up into a larger electronic paper. I think if the New York Times or the Washington Post was so inclined they could drive most of the papers in the country out of business. It would involve adding staff in major markets like Dallas. Chicago and directly competing with the ;local papers.

To use Denver as an example I have read there are only about 30 editorial staffers left in Denver. If the Times or the Washington Post went in and duplicated that local staffing along with everything else those papers offer from their national editions would the Denver paper have the chance. I don't think so.

But I don't think the Times thinks that way or Bezos wants to spend the money to take over the world. Gannett is trying to do this with USA Today but they are loaded with debt, and more importantly, inept.
 
I think the marginal cost of a company adding an electronic subscriber is close to zero. And the subscriber does ad to advertising rate base.

I think the trend in publishing is to keep cutting prices on subscriptions. With the exception of a a few publications with really strong brands like the New York Times and the Wall Street Journal publishers are not able to generate many subscriptions at full price so they must discount.

What I think this means for the industry is that very few newspapers will be able to generate enough revenues to survive and the losers will roll up into a larger electronic paper. I think if the New York Times or the Washington Post was so inclined they could drive most of the papers in the country out of business. It would involve adding staff in major markets like Dallas. Chicago and directly competing with the ;local papers.

To use Denver as an example I have read there are only about 30 editorial staffers left in Denver. If the Times or the Washington Post went in and duplicated that local staffing along with everything else those papers offer from their national editions would the Denver paper have the chance. I don't think so.

But I don't think the Times thinks that way or Bezos wants to spend the money to take over the world. Gannett is trying to do this with USA Today but they are loaded with debt, and more importantly, inept.

The Times tried this beginning late in 2009 in Chicago and San Francisco. A couple of extra pages a few times a week. Didn't goose sales much.
 
Every time I look at The Athletic home page, there is a list of HEADLINE stories down the right side. It always includes: CORRECTIONS.
That's what I see and think, there's a lot of corrections. Then I look again and it says: CONNECTIONS. My bad. But maybe they should have a list or corrections, because they need a lot.
 

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