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.
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.
Marketplace businesses offer one of the most durable competitive advantages available in the business world: network effects. The best marketplaces deliver value to all parties involved in the transaction (often creating Money Out