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New York Times Considers $5 Monthly Web-Access Fee

New York Times Co. said in a survey of print subscribers that it's considering a $5 monthly fee for access to its namesake newspaper's Web site.  —  In the survey, Times Co. also asked whether subscribers would be willing to pay a discounted fee of $2.50 a month for Web access.

Bloomberg Greg Bensinger

Context & Ripple Effects

This is the second time in two years New York Times Co. has circled back to charging for the web. In September 2007 it dismantled its paid-access scheme entirely — ending TimesSelect-era charges to maximize reach — and as recently as this February Silicon Alley Insider was mocking the paper's reluctance to charge at all. What changed is the balance sheet: the company faced a serious cash crunch by late 2008, and in March, Arthur Sulzberger was reported weighing a rumored $55-a-year online fee, with the Times openly mulling a subscription model.

Today's move is the calibration step between those poles: rather than committing, the company is asking its own print subscribers directly what they'd pay — $5 a month, or a discounted $2.50. The timing also fits the paper's broader friction with the open web: executives have complained that aggregators take large pieces of their content, and the Times has been in a very public flap with Newser over use of even the first letter of its name.

First-order effects

  • Print subscribers receiving the survey become the de facto pricing panel: the $5-versus-$2.50 spread tells the company how much headroom exists above a discount tier before its most loyal readers balk.
  • If a fee goes live, the site's existing free visitors and the aggregators that excerpt Times coverage — the source of the Newser dispute — face new access terms overnight.

Second-order effects

  • Rival general-interest publishers, facing the same print-revenue erosion, would find it far harder to defend free access once the industry's flagship brand puts a price on the web; expect competing surveys and pilot pricing rather than a continued race to zero.
  • Aggregator economics shift from free-riding to negotiation: licensing or excerpt deals become the alternative to losing traffic, strengthening the Times' hand in disputes like the Newser one.

Third-order effects

  • A paid tier would formally reverse the paper's 2007 bet that maximum reach beats direct revenue — signaling to the whole industry that web news is a product with a price, not just an advertising vehicle.
  • The unresolved question is whether subscriber conversion can offset lost audience scale; if it can't, the likely landing spot is a hybrid — some content free, premium content metered — rather than a hard wall.

The trend: Barely two years after going free, the Times' subscriber survey marks the broader newspaper retreat from the open-web consensus as print economics collapse.