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Baseline Scenario
Insightful post by Tripod founder Bo Peabody on social networks and the online media business.
A Long Island newspaper invested €4 million to redesign its online website with content behind a paywall. They got 35 subscribers in 3 months.
The web site redesign and relaunch cost the Dolans $4 million, according to Mr. Jimenez. With those 35 people, they’ve grossed about $9,000.
Second tier newspapers’ only chance to get some subscription revenue from paying online customers could be taking a share of offers bundling together access to several sources of premium content. The role of aggregator may be taken on by Apple iTunes or Amazon Kindle.