
Not that we say what the New York Times should do, but we want to note that printing and delivering a newspaper during the year costs twice as much as if the newspaper sent out to each of its subscribers a new
Amazon Kindle 2 reader.
That's how we thought. In accordance with the
financial reports of the newspaper, for the quarter, the company spent $ 63 million on paper and paint, and another 148 million went to pay and maintenance. According to rumors, the content of the editorial board separately costs $ 200 million per year.
We multiply the quarterly expenses by four, subtract 200 million, and we find that the distribution on paper costs the newspaper 644 million.
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Kindle sells for $ 359. In a
recent open letter , the trustee of the Times mentions that they have 830 thousand regular subscribers. Multiply these two numbers, and we get 297 million - almost half of the sum of 644 million above.
(A reliable source told us that we were so shy in our assessments that we didn’t even come close to real numbers.)Do we want to say that the newspaper should completely switch to digital delivery? No, because it will kill advertising revenue, and not everyone will love the Kindle.
What we want to say is that, as a way of delivering news, print publications are too costly and ineffective. Via
Alexander Moskalyuk .