Wednesday, January 27, 2010

Newsday Only Has 35 Paying Subscribers

After a $4m website redesign and launch putting content behind a pay wall Newsday has accumulated only 35 paying subscribers in three months. The net gross from those subscribers in less then $10k. Not included in the obvious significant loss is the likely drop in ad revenues to their site with a decrease in web traffic. Content providers thinking of following suit would be wise to learn from what must be considered Newsday's mistake.

http://www.observer.com/2010/media/after-three-months-only-35-subscriptions-newsdays-web-site

"So, three months later, how many people have signed up to pay $5 a week, or $260 a year, to get unfettered access to newsday.com?

The answer: 35 people. As in fewer than three dozen. As in a decent-sized elementary-school class.
...
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.

In that time, without question, web traffic has begun to plummet, and, certainly, advertising will follow as well.

Of course, there are a few caveats. Anyone who has a newspaper subscription is allowed free access; anyone who has Optimum Cable, which is owned by the Dolans and Cablevision, also gets it free.
"

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