If at first your pay-for-online-content experiment fails . . .
. . . try, try again, apparently, if you’re the New York Times. The NYT’s latest experiment in charging for online content starts next Monday, and this article has some interesting details on the business decision. The article has some actual numbers, which don’t seem to support their final decision. For starters, one quarter of the NYT’s advertising revenue comes from their online advertising. That strikes me as huge. And I do want to note that I do have deep empathy for the reporters who feel that their work deserves monetary compensation. I just don’t see why, other than precedent, that has to be via subscription and not advertising.
According to the article, the NYT’s website has 30 million unique visitors per month. They’re hoping to get 300,000 subscribers in the first year. That’s one percent of their monthly visitors. They’re willing to sacrifice the other 99% of the visitors in order to make more money. (Yes, there is some nominal number of articles you can read for free, etc.) I do not see how this can help them sustain their current position as the paper of record in the US. Aside from one crazy Canadian woman sending checks to the NYT, how many people really are going to pony up the cash once they hit 20 articles? Unless I can figure out a way for my husband and I to share an account*, once I hit my monthly limit I’ll probably just read the news elsewhere. Apparently, the NYT projects that 99% of their visitors will do exactly that.
On the technical side, what’s to stop someone from scraping the content (assuming there are still RSS feeds) and porting the links to a twitter or blog account, so that an infinite number of articles could be read for free? Or will people expect their favorite bloggers to take the financial hit for access to the NYT, and subsequently post links to articles? Will people be able to make money by being a gateway agent? Pay for NYT access, but make more money from online advertising as your site traffic increases?
I think this experiment will fail for the NYT, just as their Times Select experiment failed. I hope it fails, because as it’s structured now, the people who will lose the most access are those with neither the money nor the tech-savviness to move beyond the free 20 articles per month. (Is that the goal, perhaps? Do the advertisers want a richer, more tech-savvy audience?)
*The article doesn’t even address if accounts are per individual or per household — clearly, if we subscribed to a paper, we’d only need one subscription for the two of us. So why should we both pay for online access?

