Apples, Oranges And Journalism Revenue Print And Online
from the picking-it-apart dept
But the bigger point is that it's not the users who are paying here, it's the advertisers. Breaking out the revenue on a per user basis is meaningless, because it's not the actual marginal value of the user. Getting one more print subscriber doesn't increase the ad revenue by the amount discussed unless they can actually sell more advertising.
Rather than looking at revenue per user, the real goal should be looking at maximizing revenue, period. And to do that you look at the overall trends of where revenue is growing and where it's shrinking -- not on the average revenue per user. Focusing on ARPU simply makes you ripe for disintermediation from someone who focuses on where the market is heading, rather than how to squeeze the most out of each user.