News Corp's Ipad newspaper 'The Daily' launched this week in New York http://www.thedaily.com/. The digital newspaper has cost $30m to get to launch and will cost $500k per week to run.
Subscriptions will be $0.99 per week or $39.99 per year.
Whether the content is good or not is being debated widely on blogs and in news articles, so I want to focus on whether it can make money from it's cover price alone. Of course, if the newspaper gains enough subscribers it can attract advertising money, but in its growth period, it will be reliant on subscription revenues.
To cover the running costs for a year ($25m) it will need to gain over 600k annual subscriptions, and that is before it has paid for the investment ($30m). The Times paywall in the UK has only attracted 50k+ subscribers after many months of marketing.
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