Business Insider: Ink & Paper are laughably inefficient

by Jason Preston on March 30, 2009

After multiplying the quarterly costs by four and subtracting that $200 million out, a rough estimate for the Times’s delivery costs would be $644 million per year.

The Kindle retails for $359. In a recent open letter, Times spokesperson Catherine Mathis wrote: “We have 830,000 loyal readers who have subscribed to The New York Times for more than two years.” Multiply those numbers together and you get $297 million — a little less than half as much as $644 million.

Of course, that doesn’t count the benefit of owning the information delivery pipeline, something that the internet and the kindle don’t provide.