If I work on the magazine economist, I will work on the 2 principle.
1. Anyone who control the server, control the standard.
2. A percentage of a large number is a large number.
I will create a great app. It is free so that people will keep it in their phone. The more user, the more valuable the app is. I will have live advertisement. People can click into the advertisement. Pay reader will receive a physical version. Business will pay for the advertisement.
The danger is clear. By making it free online, she may lose current paying customer. Why buy when you can get it online? She has thousand of employee to feed. And the advertisement model may take time to work.
A 20 000 readers only bring $10 worth of ads revenue on admob. If she uses her own advertisement service, she may get $10 000 ads revenue from her business client.
To go after as many reader as possible or to go after as many physical magazine sold as possible?