Thursday, March 17, 2011

NYTimes online charging readers

The NY Times online will begin charging their most loyal readers beginning March 28. Will it tank or will it be prosperous?

http://www.nytimes.com/2011/03/18/business/media/18times.html?_r=1&src=me&ref=homepage


"For years, newspaper companies have been offering Web access free in hope that the online advertising market will cover their costs. But while online advertising has grown, it has not increased quickly enough to make up for the decline in traditional print advertising. Many publications have been looking at ways to make online consumers pay as they do for print.
“This is practically a do-or-die year,” said Ken Doctor, an analyst who studies the economics of the newspaper business. “The financial pressures on newspapers is steady or increasing. They’re in an industry that is still receding. Newspapers are trying to pay down their debt, but they have fewer resources to do it.”

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