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by Michael Cote.
Original Post: Forrester Loses $90m from market cap
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Forrester’s readership is changing, however. Kea Company’s 2014 Analyst Value Survey showed that Forrester’s hold on its potential audience is shrinking, especially in the freemium readership that is transforming the analyst industry. In 2014, Forrester was used by 65% of survey participants whose companies subscribed to analyst firms. That’s an impressively large number, despite being down on the 2013 percentage. Importantly, just 41% of those without corporate subscriptions use Forrester. Forrester’s audience is (like many of the top ten analyst houses) too small in the freemium segment, which is now the majority of the audience for analyst research. Of course, 41% isn’t a terrible percentage: Forrester’s the second largest analyst house, and it has a significant audience. That said, any analyst firm should look at the ratio between its freemium audience and the premium (subscription-paying) clientele. Some firms can get more freemium readers per client than Forrester does (such as IDC).
Without looking at the details it was hard to say if this was good or bad (a company can choose to spend profits to grow, invest in the business…or they could just be doing poorly).