NY Times Removes Online Video Limit

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The New York Times Company (NYT) 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 Apple Inc.'s (AAPL) 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, 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 subscription based model, commenced Digital Marketing Services in top markets, and refurbished its iconic brand USA TODAY to generate new advertising and marketing revenue sources.

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