Well, I quartered it down and that 13 million was posted last year sometime. The breakdown is this. A paid account costs $19.95 a year (Or $25 if not auto renew) That's between 5-6 cents a day per paid user. Say that it really is only a fraction of that 13 mil -- 20% outside of fannish journals, that's still $1,420,000 per day of non-fannish revenue. 10% is $71,305.00 per day.
Versus $837.00 a day? Yeah, they might notice, but at worst they'd have to fire somebody or three.
i.e. the proposed economic models have potential to actually increase LJ's bottom line, and at the same time, possibly wreak some real havoc within fandom, the same way FanLib could. It's the same case of fans taking all the risks and reaping little profit except as a token.
I'm not saying it will happen or that LJ doesn't massively overstate their actual active user base (paying or not) -- and in this, I'm only talking about subscription fees for paid journals -- ad revenue is a whole other animal and if they were going to offer profit sharing back to the users, that's where it would be generated from, would be my guess.
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carisma_sensei
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Date: 2008-03-20 05:11 pm (UTC)Versus $837.00 a day? Yeah, they might notice, but at worst they'd have to fire somebody or three.
i.e. the proposed economic models have potential to actually increase LJ's bottom line, and at the same time, possibly wreak some real havoc within fandom, the same way FanLib could. It's the same case of fans taking all the risks and reaping little profit except as a token.
I'm not saying it will happen or that LJ doesn't massively overstate their actual active user base (paying or not) -- and in this, I'm only talking about subscription fees for paid journals -- ad revenue is a whole other animal and if they were going to offer profit sharing back to the users, that's where it would be generated from, would be my guess.