You have been hired as a consultant by your local town newsp

You have been hired as a consultant by your local town newspaper, the Midland Clarion. Midland is a small town of about 10,000 residents. The Clarion has seen it paid subscription list decline steadily over the past 10 years, but the number of vistors to the newspaper\'s website, which currently include all of the stories that run in the paper, has steadily increased over the same time period. The Clarion\'s publisher is considering charging an annual subscription fee for access to the editorials and colums on the web site. Under this plan, the Clarion\'s classified and display advertising, along with short summaries of top news stories, wold continue to be available at no cost. Prepare a report of about 100 words in which you assess the risks of switching to this advertising-subscriptions mixed revenue model for the Clarion. You may also include a discussion of other revenue models that might work for the newspaper.

Solution

This model might become a source of predictable and continous revenue for the newspaper. With the annual subscription the newspaper would be assured of a sum of amount at the start of the year. The dedicated customer base would subscribing to the newspaper would add to the revenue of the company.

This model would provide the newspaper with the possibility to cross sell other products of the newspaper, like weekly and monthly magazines.

Bu there could be some risk factor involved as well with the new approach adopted by the newspaper. The new customers would be susceptible to the new approach taken by the newspaper. People would not be comfortable in paying a large sum of money at the start. People might also be concerned with the information, which they might be required to share while going for subscription.

There would be business risk involved as well as the customers may become apprehensive and would switch to some other local newspaper, which might provide free web based news. People may also become afraid of using new product of the newspaper as they may doubt that in future, the services may be charged again.

The committed customer base might feel left out and might switch loyalty.