Since the The New York Times announced it plans to charge users for some online access beginning in 2011, journalists and commentators around the globe have been busy predicting what will happen now that one of the world’s leading news websites has decided to start charging — again — for access. Yes, the Times has tried charging for content before. The last time being in 2005, when it launched TimesSelect, charging for access to some of columns. By 2007, the Times had dropped the program, publishing almost all of its content online again at no charge.
Under their “metered” approach, The Gray Lady will allow readers to access a certain number of articles each month free of charge. Once readers have surpassed the allotted number, they will have to pay to access the site for the rest of the month.
This comes as many news organizations are looking for ways to reverse massive financial losses. The Times, for instance, reportedly loss US$35.6 million between July and September of last year.
New York Times Reporter David Carr writes, while it might reduce the size and reach of the news organization, it is a much-needed strategy that provides flexibility for its executive. Since editors will be able to adjust site access, depending on the future advertising climes of the day, it allows a two-pronged approach, leveraging profits from either subscriptions or advertising.
Felix Salmon of Reuters writes the expected increase of subscriptions will not be enough to make up for advertising losses.
Media commentator Jeff Jarvis says it is a mistake to charge those who continually return to the website because they are its most valuable customers. By restricting the relationship with its readers, it consequently reduces its value.
GigaOM’s Matthew Ingram writes the plan may work, or may be another failed attempt to do the same, charging for access until realizing that the bottom line has not changed.
In any case, many media reporters believe that any success from charging for online content will ultimately come from the development of tablet devices such as Apple’s, and not from a metered approached by individual news organizations.
More reading about this discussion can be found here.
Tags: Future of News, New Media, New Models, Trends
