Photo: Business Insider
The Daily is averaging about 120,000 readers per week, Bloomberg’s Edmund Lee reports.The question is what percentage of those readers are paying subscribers.
News Corp officials, who estimated that The Daily would need around 500,000 paying subscribers to break even, would not break down the ratio.
If it is anywhere close to 120,000, the publication is in good shape since print magazines generally take five or more years to break even.
It’s likely not, however. iPad users can download The Daily for free for two weeks. After that, they must pay $.99 per week or $39.99 per year.
The publication lost $10 million in the first quarter.
But while that is a lot of money, it’s minuscule when compared with News Corp’s $8+ billion quarterly revenue.
The Daily, first and foremost, is an experiment. Rupert Murdoch wants to see where the form can go. He loves the idea of The Daily, even if it is not profitable.
Furthermore, given the predicted explosion of the tablet market in the next few years, there will be plenty of eyes that could potentially subscribe to The Daily.
The question is will they?
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