The New York Times Company
) stated that traffic visiting NYTimes.com and mobile Website
(m.nytimes.com) or users through mobile applications can now have
limitless access to video content for free. This applies to both
subscribers as well as non-subscribers.
Although this Zacks Rank #3 (Hold) company started to offer
unlimited access to video, yet the cap of 10 free articles per
month remains. The company had fixed a monthly charge of $15 for
accessing articles over the restricted number on its website and
smartphone applications; $20 for unlimited online access and on
) iPad tablet computer application; and $35 for online,
smartphone and iPad application.
The company chose to charge readers for online content
due to shrinking advertising revenue and seek new revenue
avenues. The publishing industry has long been grappling with
sinking advertising revenue.
The New York Times Company's advertising volume came under
pressure as advertisers shied away from making any upfront
commitments in an economy which is showing an uneven recovery.
This comes in the wake of a longer-term secular decline as more
readers choose free online news, thereby making the
print-advertising model increasingly irrelevant.
Despite hiccups in the economy, the online subscription based
model still promises a guaranteed revenue generation avenue. The
New York Times Company's pricing system for NYTimes.com was
launched on Mar 28, 2011.
Another media conglomerate,
) has also moved toward an online subscription-based model for
general news content. News International, a subsidiary of News
Corporation, began charging readers for online content for
The Times of London
Sunday Times of London
effective Jun 2010.
Gannett Co., Inc.
) has also initiated a subscription based model, commenced
Digital Marketing Services in top markets, and refurbished its
to generate new advertising and marketing revenue sources.
APPLE INC (AAPL): Free Stock Analysis Report
GANNETT INC (GCI): Free Stock Analysis Report
NEWS CORP INC-A (NWSA): Free Stock Analysis
NY TIMES A (NYT): Free Stock Analysis Report
To read this article on Zacks.com click here.