Tuesday, 26 January 2010

How a Paper Slowly Dies

Four months ago....out in New York City....a Long Island Daily in a fair amount of financial trouble...ended up getting sold off. The paper? Newsday.

The new leadership of the paper looked around and finally said it was stupid to offer news freely on the internet. So they put up a pay wall. You could read the paper online....if you paid. Otherwise, you had to buy the paper in print.

The price? $5 a week. If you paid it....you could log on and view their daily news.

How many folks in the past 100 days have signed up? Thirty-five.

Yep. That's it.

To make this work, Newsday spent four million. To this date...if you use math and really try hard....you can figure that they've earned $9,000.

How long will it take to recover the $4 million? You can figure hell will freeze over before they ever pay the $4 million back.

The paper is simply standing there and not saying much....and no, it doesn't appear that their profit margin has improved very much (although they don't chat much in public about that).