New York Times Paywall Essay

1036 WordsApr 13, 20145 Pages
Describe the current New York Times Paywall compared with the two prior ones. The current NY Times Payroll has been built on the past two experiments. The first experiment charged oversea users a set fee to access the site, however was later abandoned due to a no-fee registration model worked better. The second experiment also had an annual set price, however this price was to assess noted columnists. The NY Times news and other content on the site remained free, as well as the print subscribers. This experiment began to fail when social media and blogs grew rapidly. The current NY Times Payroll was based off of the previous experiments. It had four broad options that are put into thought based off of the access to users, content and medium. After research and debate they decided on a device-specific and metered system for users. When on the actual website, this new paywall allows users to read 20 articles a month for free. After the 20, users must be charged based on the amount they consume. However, when on a specific device, like an iPhone or iPad, only top news is free and other content must be paid for. Describe in complete sentences (but also using #’s) the New York Times Company’s sources of revenue in 2011 (use Exhibit 3). How do you think the New York Times’ sources of revenue will be affected after the introduction of the Paywall? (10 points) The New York Time’s Company’s revenue decreased in total revenue from the year of 2010 to 2011, from 239.3 to 232.3 million. Advertising contributes to over half of the total revenue with 122.1 million with Circulation as a close second with 94.1 million. After paywall is introduced we believe the revenues for NYT will decrease. Forcing a customer to pay after a certain amount of articles are viewed will just drive them to other mediums for their news. The newspaper industry is very competitive. Customers

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