For the first time in years, investors have become pessimistic on the main drivers of NYT’s business model – its digital news subscriber potential & its digital news pricing power. This write-up examines base rates for both of these drivers.

Churn cannot be reduced to a single number because customer retention is a curve, not a constant.

Scale Economies Shared businesses have a flywheel because their competitive advantages increase as the business grows larger, making it harder and harder for competitors to offer as much value to customers.

The cloud is a great example of why it is often beneficial to turn your fixed costs into variable costs. Concurrently some players are emerging as scaled champions from having this be a fixed cost.

Investors want to know why customers use a company’s products/services. Often this is referred to as the ‘customer value proposition’ or the ‘customer ROI’. The Seven Deadly Sins helps us understand situations where that value proposition isn't entirely rational.