THE APP

research

Background

We did research to see what price point current payment models are for a variety of news organizations in order to determine the price point for each article on Nickel News so that we are a financially appealing option for users.

Next, we created three theoretical model user profiles based on how many articles they would read per day. These profiles range from the Average Joe who reads 6 articles/day to the News Fanatic who reads 30. To simply the number, we assume that each user profile reads the same number of articles from each tier.

We were able to calculate the revenue each contributing news organization would make based on the amount of users Nickel News has. Each tier gets 2/3s of the revenue from their articles Tier 1 organizations such as WSJ gets ⅔ of 15 cents per article. Tier 2 organizations such as The New York Times gets ⅔ of 10 cents per article. Tier 3 organizations such as The Athletic gets ⅔ of 5 cents per article. Nickel News gets the remaining ⅓.

We calculated these monetary value on a benchmark average that each users evenly reads the same number of tier, 1,2 and 3 articles per year. Approximately 1200 articles total and also equivalent to our 'Casual User' user profile.

Additionally, we calculated the annual revenue that each tier and our company would receive assuming that we accrued a certain number of users. If we had 5,000 users, we would make $270,000 annually. Tier 1 organizations such as The Wall Street Journal would make $300,000 annually and so on. Based on this analysis, we believe that Nickel News is a financially viable option for both users and news organizations.

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