Back in November when News Corp. released some subscription info for its paywall for The Times/Sunday Times (publications which it walled off behind a complete paywall), the details were really lacking. They claimed 105,000 “paid” digital users, but that mixed up a bunch of different kinds of users, including one-off “daily” purchases and subscribers. They did say about 50% of those were “monthly” subscribers, but there was an introductory £1 per month rate, as compared to the full £8.67 per month rate that would go into effect after the first month. So, now, with News Corp. claiming 79,000 monthly subscribers, I’m wondering how those “intro” plan subscribers are being counted. Did all of them convert to full priced? How many dropped off? Are they still counting those who dropped off in that subscriber count?

Either way, while 79,000 subscribers may sound like an impressive number, I’m still not convinced the economics works out. Assuming that they’re all paying the full price, subscribers are paying almost exactly $1 million per month. That’s not bad, but it’s not a really huge number for an operation like News Corp. either. And if it’s true that traffic to the websites dropped about 90% from about 21 million unique visitors down to less than 3 million unique visitors, ad revenue from the site really isn’t bringing in that much (no matter how many times they try to spin the audience as being “more valuable.”) It still seems like they almost certainly gave up significantly more in ad revenue than they’re making via the paywall, and while there are still new signups, over time it’s going to be tougher and tougher to sign up new users. Clearly, the paywall is not a complete disaster, like some others, but it still doesn’t seem like the economics add up here.

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