The Disintegrating Economics Of Newspaper Circulation

Posted
By: Jeff Jarvis | PaidContent.org

Anna Tarkov calculates that the Chicago Tribune’s Groupon deal — two years of the Sunday ‘bune for $20 — works out to 19 cents an issue. What’s at work here is the myth of legacy media, that every reader sees every ad thus every advertiser pays for every reader … thus every reader is equally valuable and it’s worth losing money holding onto any reader.

Those aren’t the economics of online, where advertisers pay only for the readers who see (or click on) their ads, and where abundance robs publishers of pricing power over their once-scarce inventory.
































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