The New York Times announced Wednesday it plans to begin charging readers for access to online news content, the Toronto Star reported Jan. 21.
The Times plans to implement a metered system, allowing readers to see a limited number of articles for free before charging for any additional browsing.
When this system is in place in 2011, the Times will continue to grant free access to online material for individuals who subscribe to the paper’s print edition.
The Times tried a similar initiative in 1996 with little success, and more recently abandoned a plan to charge $50 U.S. per year for access to online content because of a decrease in advertisement sales and online traffic.
In the technological age, managing a newspaper’s online content while relying only on ads for revenue presents a challenge.
Despite the Times’s failed attempts to generate adequate revenue from charging for online content in 1996, times have changed. Fourteen years ago, the Internet was a lonely domain with few visitors that required people to view sites while sitting at a desktop computer.
Now, when people can access news on the go via smartphones or e-readers, there’s a much broader base of customers who may be more willing to pay for electronic news.
It’s possible the Times won’t go through with its plans to charge for online content. And even if it does, it’s probable many users won’t notice much of a change if they only visit the site to read the odd article once in a while.
The choice to implement a metered system is an effective way to maintain a broad base of occasional readers while also capitalizing on payments from those who prefer a more thorough reading of the paper.
With an abundance of online news outlets offering stories free of charge, it will still be possible to obtain news and information without a fee. And if consumers recognize the value of paying for a reputable news source like the Times, this may launch newspapers into a new business model of selling online content.
The Times is proposing a bold shift, and the outcome in terms of revenue is unpredictable. But through the paper’s pioneering efforts, we will find out if it’s the right time for newspapers to make the shift toward offering online content for a fee.
Like the music industry and others that have gone before it, it’s refreshing to see the Times changing with the times to profit from its online offerings.
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