Another Sign of Digital New Changes
The New York Times recently changed its policies to limit the number of free articles that people can read online and through its mobile app as part of its effort to increase paid online subscriptions.
While newspapers and news media in general face a continued advertising slump, outlets are seeking opportunities to generate revenue from their online news sources as more readers turn to digital media for their news content.
According to a recent article on Ad Age, “Last year, revenue from subscriptions surpassed ad sales – turning the typical business model for newspaper publishers on its head.”
“They’re trying to make the online product more valuable,” said Edward Atorino, an analyst at Benchmark Co. “Any step to get more digital subscribers is important because that’s the way the industry’s going as print circulation is going down.”
The New York Times Co has seen success in its paid subscription strategies. It first introduced the online pay wall in 2011 and tightened its monthly limit on free articles on the web to 10 from 20 a year later. The company plans both cheaper, more limited digital subscriptions and a more expensive package that would also include “extras” like preferential access to Times events.
I think this is definitely a trend we are going to see more of as the newspaper/media industry experiences fewer paid print subscriptions and more online subscriptions for major city new dailies.