Question
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
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 $22. However, if they are also weekly subscribers of the print edition of the newspaper, they receive a 50% 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 28% of the households that order the print edition will also order the online subscription. While there are basically no variable costs to the online version, the print edition does cost $22 per month to print and deliver to households.
What is the 3 year CLV of a print and online subscriber presuming they keep both subscriptions for the full 3 years?
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