The New York Times Company (NYT) is steadily taking strides to bring in more readers under the ambit of the subscription based model. Additionally, the latest step to limit the number of articles that can be read through mobile applications is just another strategy undertaken on that front.
This diversified media conglomerate announced that Jun 27 onward, mobile app users will be able to access a maximum of three articles per day from over 25 sections, blogs and slideshows, before being asked to subscribe. Earlier, the users only had access to the “Top News” segment, unlike subscribers who could enjoy content beyond the prescribed limit. However, the video content remains free for all.
The news apps on Apple Inc.'s (AAPL) iPhone, and Android and Windows powered phones will be affected due to changes in The New York Times apps. It is to be noted that subscribers to the New York Times’ print version are able to access content or articles online as well as on all applications of The Times for no additional charge.
To make users accustomed to the new mobile meter approach, the company is planning a 7-day free trial run, whereby users of smartphones can access all the content by downloading current versions of the Android and iOS news apps.
Despite hiccups in the economy, what still promises a guaranteed revenue generation avenue is the pricing system. The New York Times Company launched a subscription based model for NYTimes.com on Mar 28, 2011 to curb shrinking print advertising revenue and seek new revenue generating avenues.
Another media conglomerate, News Corporation (NWSA) 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 and Sunday Times of London effective Jun 2010. Gannett Co., Inc. (GCI) has also initiated a paywall based model.
Currently, The New York Times Company carries a Zacks Rank #4 (Sell).Read the Full Research Report on AAPL
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