Internet payment model is a test for newspapers struggling to retain readers, writes JENNIFER SABAin New York
THE NEW York Timeswill begin charging for full access to its articles and other content on phones, tablet computers and the internet, in a bold plan that risks alienating readers of its popular news website, nytimes.com.
Readers who do not subscribe to the namesake newspaper of the New York Times Company (NYT Co) will be able to read 20 articles per month on the website for free but will have to pay to read more, the company said. Subscribers to the print edition will have access to nytimes.com.
The newspaper launched the pay model in Canada on Thursday and plans to roll it out elsewhere on March 28th.
The pay model is a big test for large-circulation general interest newspapers, which have struggled to retain readers and advertisers as more people get their news from the internet.
NYT Co’s strategy is similar to that of Pearson Plc’s Financial Times, which has had some success charging high-end business readers for online access.
The Wall Street Journal,once a newspaper targeted to financial professionals, is also at the forefront of charging for online news, even as it has broadened to become a more general newspaper under the ownership of News Corporation, whose chairman and chief executive is Rupert Murdoch. The Journal is now the largest US newspaper.
NYT Co's pay model allows casual readers to access the New York Times, unlike some other strategies such as News Corp's paywall experiment with the Timesof London. The British paper bars anyone who does not pay from reading its website, which has resulted in a 90 per cent plunge in visitors.
About 31.4 million individuals visited nytimes.com in February, according to online research measurement firm ComScore.
“We need to make sure that part of our business continues to grow,” said Martin Nisenholtz, senior vice-president of digital operations at NYT Co. “The way we think we can do that is taking this metered approach, charging the folks who are drinking deeply.”
This is the second attempt by the New York Timesto charge for digital news in hopes of diversifying its revenue stream.
It will charge $15 per month for unlimited access to nytimes.com and a smartphone application; $20 for online access and an Apple iPad app; and $35 for online, smartphone and iPad.
NYT Co said it would begin using Apple’s subscription service in its apps store by June 30th.
Readers who come to Timesarticles from other sources such as blogs and social media sites will be able to access content even if they hit the limit. However, the Timesis limiting free articles on Google to five per day.
“Today marks a significant transition for the Times, an important day in our 159-year history of evolution and reinvention,” NYT Co chairman and publisher Arthur Sulzberger Jr said in a statement.
The newspaper attempted to make readers pay in 2005 but dropped the plan after two years.
It remains to be seen whether people will pay for digital news. In the case of the three dozen newspapers that have moved to online pay models, only 1 per cent of readers have opted to pay, according to a recent study by Pew Research Center’s Project for Excellence in Journalism.
NYT Co shares rose 0.3 per cent to close at $8.89 on the New York stock exchange. – (Reuters)