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November 3, 2009updated 26 May 2010 8:12pm

Dharmash Mistry: National newspaper websites need just 5% of readers to pay

By admin

National newspapers need to convince less than five per cent of their current online readers to pay for access to content to make a move away from an advertising revenue model successful, a private equity financier told the Guardian.

Former senior Emap executive Dharmash Mistry, now a partner at private equity firm Balderton Capital, has claimed that getting around three to four per cent of an a paper’s online audience to pay  £3 a month would cover the current digital ad revenue he estimates most publishers currently generate.

Mistry said the analysis was based on a print website attracting 20 million unique users a month, adding that each national probably makes under £20m in online ad revenue a year.

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