LanceyHoward
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The article discusses how the Boston Globe just added three former Providence Journal staffers to beef up coverage of Rhode Island.
The Boston Globe's move into Rhode Island is a bet that the last newspapers standing will have a bigger footprint
The articles states that the Providence paper is down to less than reporters. So how much would it cost for the Globe to staff up to provide comparable coverage of the state? If the Globe goes ahead and hires 15 people that costs maybe $100,000 a reporter or 1.5-2 million. The Globe charges $30 a month for an electronic subscription so if they get 5,000 additional subscriptions in Rhode Island they make money when electronic advertising revenue is included.
The Globe has about 112,000 electronic subscribers in a market of 4,600,00. The population of Rhode Island is 1,060,000. So 5,000 subscriptions seems to be a goal that can be achieved. And one of the wonders of electronic publishing is that every damn near every additional subscription revenue drops directly to the bottom line. So if the Globe gets 20,000 subscribers they will have hit a gold mine.
And if I live in Rhode Island and the Globe and the Journal offers about the same local coverage I subscribe to the Globe because I will get their excellent sports section, national reporting, critics, etc. And I have never used the Providence Journal website but I bet the Globe site is much easier to use.
If the Globe captures a large share of the electronic market in Rhode Island they will deprive the state's papers of electronic revenue, leaving them with the declining print market. This will force these papers to shut down.
And if the Globe makes money doing this they will go after other papers in New England such as the New Hampshire papers.
The Boston Globe's move into Rhode Island is a bet that the last newspapers standing will have a bigger footprint
The articles states that the Providence paper is down to less than reporters. So how much would it cost for the Globe to staff up to provide comparable coverage of the state? If the Globe goes ahead and hires 15 people that costs maybe $100,000 a reporter or 1.5-2 million. The Globe charges $30 a month for an electronic subscription so if they get 5,000 additional subscriptions in Rhode Island they make money when electronic advertising revenue is included.
The Globe has about 112,000 electronic subscribers in a market of 4,600,00. The population of Rhode Island is 1,060,000. So 5,000 subscriptions seems to be a goal that can be achieved. And one of the wonders of electronic publishing is that every damn near every additional subscription revenue drops directly to the bottom line. So if the Globe gets 20,000 subscribers they will have hit a gold mine.
And if I live in Rhode Island and the Globe and the Journal offers about the same local coverage I subscribe to the Globe because I will get their excellent sports section, national reporting, critics, etc. And I have never used the Providence Journal website but I bet the Globe site is much easier to use.
If the Globe captures a large share of the electronic market in Rhode Island they will deprive the state's papers of electronic revenue, leaving them with the declining print market. This will force these papers to shut down.
And if the Globe makes money doing this they will go after other papers in New England such as the New Hampshire papers.