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Merric's view: Thoughts on the Digital Initiative.
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<blockquote data-quote="MerricB" data-source="post: 3493732" data-attributes="member: 3586"><p>Just a note on your figures: If they're true, the actual loss to Paizo is 34% of their current sales. That's significant. A drop from 50% of the market to 33% of the market is a 34% drop on actual sales. That sort of revenue loss - which actually makes more than 34%, when you consider overhead - is something I don't think they could easily recover from.</p><p></p><p>Of course, what really complicates this is that we're talking about two overlapping populations. We have X people who would only subscribe to an online magazine, Y people who would only subscribe to a paper magazine, and some people Z that would do either. If Z is close to or greater than Y, and X is much greater than Y, then the DI makes a lot more sense from Wizards' point of view.</p><p></p><p>Another note to all: if the price of the DI is less than that of the magazines, it's a much better deal for anyone not in the US as we don't have to pay shipping costs!</p><p></p><p>It cost me about US$75 to get a year's subscription to Dragon, and I had to contend with really, really lousy shipping. I'd get the magazines two to three months after everyone else had them. </p><p></p><p>Cheers!</p></blockquote><p></p>
[QUOTE="MerricB, post: 3493732, member: 3586"] Just a note on your figures: If they're true, the actual loss to Paizo is 34% of their current sales. That's significant. A drop from 50% of the market to 33% of the market is a 34% drop on actual sales. That sort of revenue loss - which actually makes more than 34%, when you consider overhead - is something I don't think they could easily recover from. Of course, what really complicates this is that we're talking about two overlapping populations. We have X people who would only subscribe to an online magazine, Y people who would only subscribe to a paper magazine, and some people Z that would do either. If Z is close to or greater than Y, and X is much greater than Y, then the DI makes a lot more sense from Wizards' point of view. Another note to all: if the price of the DI is less than that of the magazines, it's a much better deal for anyone not in the US as we don't have to pay shipping costs! It cost me about US$75 to get a year's subscription to Dragon, and I had to contend with really, really lousy shipping. I'd get the magazines two to three months after everyone else had them. Cheers! [/QUOTE]
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