Yes I know Bezos owns Wapo. That’s why I don’t read it anymore.
Do you think it’s his personal charity? I doubt it! Even if he doesn’t need the money he’ll see it as a matter of pride to make the paper profitable. Anything otherwise would be like a gardener letting all his plants die: embarrassing.
Economics 101: if you charge a trillion dollars for a newspaper and nobody buys it, your profit is zero. If you give your paper away for free and everyone in the world accepts a free copy, your profit is also zero. Somewhere in between the two extremes is a price where profit is maximized. This is the equilibrium or market-clearing price since either raising or lowering the price from this point will reduce profits.
Again, maybe you don’t understand, but $7 < $26 < $29. If you only need the paper for 1 day (or anywhere up to 1 week), it’s cheaper to pay $7 for the 1 week subscription than it is to pay $26 (50 cents per week) for the whole year. There is no option to pay 50 cents for one week and then cancel it.