Will the New York Times Paywall Succeed?

Written on:April 1, 2011
Comments are closed

The advertising revenue model and the subscription model aren’t “two great tastes that taste great together.” In fact, they’re in direct conflict. Advertising revenue is based on eyeballs and interactions — to increase it, you would make your site more broadly appealing (less specialized), more accessible (less exclusive), plus make your ads as diverting/distracting as possible (less value-added). But do that and you’ll lose subscribers, which means fewer eyeballs, and you’re in a death spiral. Keep your subscribers happy by catering to their specific tastes (more specialized), increasing prestige (more exclusive), or removing distracting ads (value-added) and your advertisers will be displeased.

Share and Enjoy

Related Posts:


Pinterest