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by arjie
3868 days ago
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$8 a month is a pittance. You can't even get the NYT alone for that. You can't get the WSJ either. You can, just barely, get the Linux Weekly Newsletter for that much. This is like the GMail-without-ads idea. The provider and the user are far out of sync with each other. You _can_ get a Gmail without ads today, if you want. It'll cost you $50 / year. To make it worse, that decreases the value of your advertising space. When you have a free-only service, the value of your advertising is the benefit of showing the people who can afford things ads. If you have a free and a paid ad-free service, the value of your advertising is significantly lower, because the people with money (and willing to spend it) are no longer going to be shown the ads. Great, now I'm going to advertise to a bunch of poor people and skinflints. There's no chance I'm going to pay the publisher an equal amount for those ads as I'm going to pay them for the rest. So that publisher will have to charge paying users enough to make up the shortfall. |
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It would work poorly for the regular NYT readers, but I'd argue that's not most of the Internet. People don't browse websites, they read articles they found using a search engine or were linked to somewhere. I'm not paying NYT, the Economist, WSJ, The Atlantic, and a hundred other websites $10 each, when I read on average one article every two month on each of those sites. So I think the idea mostly works, but we need to make sure that those who read more articles from a single site pay correspondingly more to it.
> Great, now I'm going to advertise to a bunch of poor people and skinflints. There's no chance I'm going to pay the publisher an equal amount for those ads as I'm going to pay them for the rest. So that publisher will have to charge paying users enough to make up the shortfall.
So the system stabilizes at some price point and there are no ads? I'd say "mission accomplished" :).