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I suspect the reason we don't see this is because subscribers probably consume less than they pay for. To say it another way, many subscribers currently paying
by johnmarcus 7y ago
I suspect the reason we don't see this is because subscribers probably consume less than they pay for. To say it another way, many subscribers currently paying $10/mo for NYT do not consume 100 articles in the month, on average. If those subscribers switch to pay-as-you go it would be a net loss, even though the audience may have technically expanded.
In economic terms, i believe this related to The Law of Diminishing Utility. https://www.investopedia.com/terms/l/lawofdiminishingutility.asp https://www.investopedia.com/terms/l/lawofdiminishingutility...
e.g. - a consumer will pay $10 to consume the first 30 articles in a month, but the 31-100 articles have a diminishing utility (so much time in the day to read). If they paid per article from the start, overall they would pay less.
If we were to say 1 article per day from NYT is interesting, a person would consume 30 articles in a month, paying $3. The NYT would need to triple their pay-as-you-go readership to break even. In reality, it's rare that a pricing change as such would accomplish a 3x gain in readship. So, the status quo continues.
Just for the record, I'm not judging your idea, just adding to the conversation of why it hasn't likely happened. There is probably room for a competitor to offer that sort of pricing, but it likely wouldn't work favorable for every organization, from a shareholders perspective.
- mirimir 7y agoYeah, but here's the thing. I realize that. And there are too many sites that I'd want to read, even just from HN links. So the per site subscription model is just unworkable. So from me, they get nothing now. But with a system for transparent nominal payments, where payments under few cents were OKed by default, they'd get at least something. I doubt that I'm unique. But maybe I'm unusual enough that the scheme would never work.
- YarickR2 7y agoYou are not unique, and this market is so very ready for pay per article and nanotransactions.