iPad changes equation of newspaper-subsidized e-Readers

Source POYNTER on February 4, 2010 0 Comments
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"iPad Changes Equation of Newspaper-Subsidized E-Readers," Poynter, Feb. 4, 2010

Stack up the price of Apple's iPad against what it costs to put a newspaper in your driveway for a couple of years and you'll find an e-reader business model that just might work.

Let's look at the numbers: Every week, a typical American newspaper spends $1.50 per subscriber for production and another buck on delivery, according to estimates assembled by John Murray of the Newspaper Association of America.

Add to that another dollar or so to cover telemarketing and other costs of acquiring the subscription in the first place. Because of the churn of newspaper subscriptions, it takes two subscription acquisitions to sustain the equivalent of a single annual subscription, bringing the acquisition costs up to $2 per subscriber per week.

Mentioned later in the article is Program Director for Digital Publishing Roger Fidler:

Roger Fidler, the granddaddy of news tablets who heads an association of leading papers looking at such issues, says the coupon idea is gaining favor among his members.

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