Feb 21, 2011

Reinforcing our Django/Python and Symfony teams

We are happy to welcome, to the RevSquare team, two very talented developers: Adam Zielinski and Tomasz Roszko.

Adam is a Symfony, as well as a Django expert. He has been working with the Symfony framework for the past five years and with Django for the past three years.

Tomasz is a Python specialist. He has been working with Django since the beginning, four years ago. He is also very comfortable with PHP and C++. He has a M.A. M Sc. from Bialystok University (Poland). He is a big fan of his local soccer team: Jagiellonia Białystok. He is also a proud father of three.

For the past three years, the RevSquare development team has been focusing on Django/Python, Symfony and Drupal. Even if the team also has expertise in other technology like: HTML 5, iPhone/iPad, Flash/Flex, Joomla, Cake, Magento and Mongo DB.

Feb 4, 2011

Can The Daily make some money?

Jeff Jarvis started, on his blog, a conversation about whether or not The Daily can make some money.  A few months ago, Frédéric Fillioux (Monday Note) crunched some numbers.

Here are three hypotheses. Don't hesitate to comment and make your own.

HYPOTHESIS #1: 1% penetration of the iPad market

- USA Today paid circulation (1.82M) is less than 1% of the adult American population (around 220 M of people 17+)
- Let's say that The Daily will get 1% of the 15M iPads. It is 150,000 subs x $40 = $6M/year.
- Let's say that they have a CPM like the USA Today app at $50 and that they have 10 ads a day for 365 days. So ad revenue will be = ~$27.34M/year. (150,000/1000= 150. Then 150 x50 x 10 x 265)
- Total revenue = ~$33.4M/year

HYPOTHESIS #2: 0.56% penetration of the iPad market
- How do we come up with 0.56%? I'm using Le Monde (the French daily) numbers. They have 7 million monthly UV. 39,000 of them pay to access the paid part of lemonde.fr. (39,000 = 0.56% of 7 million).
- In this case, sub revenue is = 3.36M/year (84,000 x 40). 84,000 is 0.56% of 15M iPad users.
- Ad revenue (if we keep the same $50 CPM and the same 10 ads/day) = $15.33M/year.
- Total revenue: 18.69M/year.

HYPOTHESIS #3: 0.33% penetration of the iPad market
- How do we come up with 0.33%? Le Monde sales ~300,000 print copies. 100,000 customers access to the paid part of lemonde.fr (39,000 pay only for the web + 61,000 print subscribers who requested access to it). So 100,000 is 0.33% of the 300,000 people paying for print.
- In this case, sub revenue is = $1.98M/year. (49,500 x 40). 49,500 is 0.33% of 15M iPad users.
- Ad revenue (if we keep the same $50 CPM and the same 10 ads/day) = $9M/year.
- Total revenue: $10.98M/year.

Of course the more iPad users, the more potential. On top of that, The Daily is probably going to have an Android and a windows version.

Operations are $25M / year, so it does not look impossible to make money (even if initial investment is $30M). But do you get any advertiser with 150,000 subscribers? The Daily team has put numbers together before launching the project for sure. I'll be curious to see their business cases. As a reader, I'm not the audience. I hope there is one for this hybrid. We'll see.