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Information and Ideas / Command of Evidence Difficulty: Easy

Effect of Paywall Introduction on Newspaper Companies’ Revenues

NewspaperTotal revenue change ($ in thousands)Percentage change (%)Newspaper size
Los Angeles Times93,96612.5large
The New York Times235,78820large
The Denver Postnegative 3,765negative 1small
Sun Sentinelnegative 24,899negative 11.9small
Chicago Tribune94,49219large

Digital paywalls restrict access to online content to those with a paid subscription. In an investigation of the effect of paywalls on newspaper company revenues for print and digital subscriptions and advertising, Doug J. Chung and colleagues compared actual outcomes (with a paywall) to control estimates (without a paywall). The researchers concluded that introducing a paywall is generally more beneficial for larger newspapers, which have high circulation and tend to offer a substantial amount of unique online content.

Which choice best describes data from the table that support Chung and colleagues’ conclusion?

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Explanation

Choice C is the best answer. The conclusion is that paywalls are more beneficial for large newspapers. This data supports that conclusion by comparing the revenue increase of a large newspaper to the revenue decrease of a small newspaper.

Choice A is incorrect. This choice doesn’t support the conclusion. It doesn’t include any small newspapers for comparison. Choice B is incorrect. This choice doesn’t support the conclusion. It doesn’t include any small newspapers for comparison. Choice D is incorrect. This choice doesn’t support the conclusion. It doesn’t include any large newspapers for comparison.