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Easy Reading and Writing · Information and Ideas · Command of Evidence · MCQ

Effect of Paywall Introduction on Newspaper Companies’ Revenues

NewspaperTotal revenue change ($ in thousands)Percentage change (%)Newspaper size
Los Angeles Times93,96612.5large
The New York Times235,78820large
The Denver Post−3,765negative 3,765−1negative 1small
Sun Sentinel−24,899negative 24,899−11.9negative 11.9small
Chicago Tribune94,49219large

Digital paywalls restrict access to online content to those with a paid subscription. In an investigation of the effect of paywalls on newspaper company revenues for print and digital subscriptions and advertising, Doug J. Chung and colleagues compared actual outcomes (with a paywall) to control estimates (without a paywall). The researchers concluded that introducing a paywall is generally more beneficial for larger newspapers, which have high circulation and tend to offer a substantial amount of unique online content.

Which choice best describes data from the table that support Chung and colleagues’ conclusion?

  1. A

    The Chicago Tribune and the Los Angeles Times had similar total revenue changes, but the Los Angeles Times had a smaller percentage change.

  2. B

    The Los Angeles Times had a 12.5% revenue change, while the Chicago Tribune had a 19% revenue change.

  3. C

    The New York Times had a 20% revenue change, while the Denver Post had a −1%negative 1% revenue change.

  4. D

    The Denver Post had only a −1%negative 1% revenue change, which was the smallest percentage change of the selected companies.

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id cb_question_bank:c3b54a89-cad1-4170-9249-4a22175c2a92 · question 145da981 · JSON