Serial entrepreneur Phillip Greesnpun has a question for New York Times CEO Janet Robinson: “How did the New York Times manage to spend $40 million on its pay wall?”He writes:
Google was financed with $25 million.
The New York Times already had a credit card processing system for selling home delivery. It already had a database management system for keeping track of Web site registrants.
What did they spend the $40-50 million on?
A monster database server to keep track of which readers downloaded how many articles?
They should already have been tracking some of that for ad targeting. In any case, a rack of database servers shouldn’t cost $40 million.
What am I missing?
I built a pay wall back in 1995 for the MIT Press…I think the invoice worked out to approximately $40 million less than $40 million.