Business, 01.02.2021 20:40 chandlern

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 $25. However, if they are also weekly subscribers of the print edition of the newspaper, they receive a 60% 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 26% of the households that order the print edition will also order the website subscription. While there are basically no variable costs to the website version, the print edition does cost $21 per month to print and deliver to households. Required:
What is the 3 year CLV of a current print edition customer taking into consideration those that will choose print only (24 month) and those that choose to add the digital edition (who then drop the print after 16 months)?

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