(NYT) The New York Times Company to Charge Web Readers

January 19th, 2010

The New York Times Company (NYT) may soon be charging readers for its online content, which will bring the media conglomerate at par with the Wall Street Journal and the Financial Times.

In an effort to offset declining revenue and a shrinking market share, publishing companies are now considering charging readers for online content. This comes in the wake of a longer-term secular decline as more readers choose to read news free online, thereby making the print-advertising model irrelevant.

The New York Times is considering two options for charging online traffic. The first option is the Wall Street Journal’s walled-garden system, where some articles are available free but certain other articles are only available to paying subscribers. The second option is the Financial Times’ metered system, where readers after browsing a certain number of free articles, are being asked to subscribe.

Charging online users for content will definitely increase revenue but at the same time, there is a high risk of losing online traffic and advertising dollar, since display-advertising revenue is fueled by page views, and restricting the readers to access a certain number of articles may depress advertisers. The New York Times should find a way to generate revenue through online subscriptions without hindering online advertising.

Zacks Investment Research

More on this topic (What's this?)
Even Harvard Made This Mistake (Random Roger's Big Picture, 12/1/09)
Boston Globe May Be Latest Victim of Ad Slump as Union Votes Against Concessions (Money Morning, 6/9/09)
Bullet Train: The Week’s Best from the Web (Wall St. Cheat Sheet, 9/19/09)
The Boston Globe to be shut down (Credit Writedowns, 5/4/09)
Read more on New York Times Company at Wikinvest

Related Posts:

  1. (NYT) The New York Times Company Stalls SaleThe New York Times Co. (NYT) recently decided not to sell Massachusetts newspaper, Worcester Telegram...
  2. (NYT) New York Times Company Updates GuidanceThe New York Times Company (NYT) updated its guidance for the fourth quarter and fiscal...
  3. (NYT) NY Times Beats Earnings ConsensusAmid the secular and cyclical slowdown in print advertising The New York Times Company (NYT)...
  4. (NYT) Job Cuts at New York TimesThe New York Times Co. (NYT) announced another round of cuts in its headcount amid...
  5. (NYT) The New York Times Company Cancels Boston Globe SaleThe New York Times Company (NYT) shed its plan to sell the Boston Globe after...
  6. (NYT) New York Times Company Stake Sold by Harbinger Capital PartnersRecently, Harbinger Capital Partners, one of the largest investors in The New York Times Company...


Search Posts by Tag: | | Publishing - Newspapers | Services

RSS Feeds by Tag: NYT | The New York Times Company | Publishing - Newspapers | Services |

Other Posts by: | RSS Feed for this author