Free WSJ.com would require 12x the traffic

Cory Bergman January 2nd, 2008

Bear Stearns analyst Spencer Wang crunches the numbers and determines that WSJ.com would need a 12x increase in traffic to offset the loss in subscription dollars if it moved to a free model.

Adds Rocker in comments: “Lame analysis. $6 (CPM) is absurdly low for this site. WSJ.com at X traffic is worth a multiple of what Yahoo Finance is worth at the same level of traffic. Plus going free opens up syndication/broader distribution options beyond direct site traffic that will expand the footprint and revenue potential, advertising and otherwise. All in all, this is eminently achievable for a company like News Corp.”