Who is Cannibalizing Who
May 5, 2010 Leave a comment
Over on AppleInsider I came across this quote in an article about the competition between the iPad and the Kindle around news app:
Within the Times, executives are said to be grappling with how to price digital content, with people on the print side pushing for $20 to $30 digital subscriptions to avoid cannibalization of existing print revenues. On the digital side, there’s an effort to keep the iPad subscription closer to $10.
What struck me as interesting is that the print side feels that the digital side is competing with them. I am not sure that is the whole picture. That suggests that they have a fixed number of subscribers, clearly that it not the case. And while they may get 1x subscribers at $20 or $30, they may get 5x at $10. I don’t think they would be having this conversation if they had a good handle on the market and the prices it can bear.