Newspaper Pricing

Newspapers had always been priced more

cheaply than they cost to produce. Why?
Newspaper Pricing

A typical American newspaper pre-web made

about 80 percent of its revenue from advertisers,
20 percent from readers.
Advertisers wanted to get their messages in front
of lots of people, so newspapers priced themselves
low to maintain a mass audience.
Newspaper Pricing

In recent years, free online news sources have cut

deeply into that audience.
While the pricing theory dictates lowering prices
when demand softens, most newspapers have
raised their subscription rates by 40–60%.
Media Use Among Teens
Media Use Among Teens
Media Use Among Teens
Breakout Room Assignment
Breakout into rooms and discuss this pricing strategy.
Does this pricing strategy make sense?
Are newspapers price inelastic?
Who is the existing customer base for print newspapers?
What should newspaper publishers do:
In the short-term?
In the long-term?