The Gotham City News is moving to a paywall subscription service rather than a free news...

Transcribed Image Text:

The Gotham City News is moving to a paywall subscription service rather than a free news website with unlimited access. If subscribers would like to access more than ten articles per month, they will need to pay a monthly subscription fee of $21. However, if they are also weekly subscribers of the print edition of the newspaper, they receive a 60% discount on the on-line subscription rate. The monthly rate for the print edition of the newspaper is $28. Based on market research, the Times believes that 24% of the households that order the print edition will also order the website subscription. While there are basically no variable costs to the website version, the print edition does cost $21 per month to print and deliver to households. Market research indicates that the average length a current print edition subscriber will continue subscribing is only 16 months if they choose to also purchase the on-line subscription. Under these assumptions, what is the expected 3 year CLV for a print edition subscriber who chooses to also subscribe to the digital version? (Note: presume they continue for all 3 years with the on-line version). The Gotham City News is moving to a paywall subscription service rather than a free news website with unlimited access. If subscribers would like to access more than ten articles per month, they will need to pay a monthly subscription fee of $21. However, if they are also weekly subscribers of the print edition of the newspaper, they receive a 60% discount on the on-line subscription rate. The monthly rate for the print edition of the newspaper is $28. Based on market research, the Times believes that 24% of the households that order the print edition will also order the website subscription. While there are basically no variable costs to the website version, the print edition does cost $21 per month to print and deliver to households. Market research indicates that the average length a current print edition subscriber will continue subscribing is only 16 months if they choose to also purchase the on-line subscription. Under these assumptions, what is the expected 3 year CLV for a print edition subscriber who chooses to also subscribe to the digital version? (Note: presume they continue for all 3 years with the on-line version).

Answer rating: 100% (QA)

It seems like youve provided information about the Gotham City News transitioning to a paywall subsc... View the full answer