Friday, March 25, 2011

For the NYT's sake, I hope its new digital subscription system works, but all I know is that I don't expect to participate

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They know that, faced with an unsustainable economic model, they've got to do something. I feel for them, and for us -- even those of us who bad-mouth it incessantly have to wonder how news coverage would survive the loss of the NYT.

by Ken

I've been meaning to talk about the New York Times's coming "digital subscription plan" for the website, and now here we are only a weekend away from the big day when everything changes, this Monday! It's a plan, as you probably know, under which the site remains wholly free to home-delivery customers and while offering all others a modest amount of content free and beyond that for-pay. My problem in writing about it is that I really don't have much to say.

Just to be clear what the new system will be, I found a succinct explanation by Paul Smurl, vice president for paid products at NYTimes.com, in answer to one of the reader questions he's been answering about it (supplementing the existing online digital subscription FAQ):.
Q. I previously paid an annual subscription fee of $50 for electronic access. Then The Times announced it was moving to an "ad revenue business model" and no fees would apply. Now, two years later, subscriptions are back. How does The Times justify its change to a subscription model? Thanks for consideration of this question. By the way, I was plenty OK with the $50/year, however, two years later going from $50 to $180/year raises questions about The Times's direction and how it may affect the readers.

-- Stephen H. Gorski


A. You are referring to Times Select, which launched in 2005 and was discontinued in 2007. As you might recall, your subscription to TimesSelect allowed you online access to Times opinion columnists and the remainder of the site was open. The plan we are launching now is very different. It allows for a generous amount of digital content free for all readers (up to 20 articles, section fronts, etc.) but asks users to pay for full access to the site. The “basic” plan that costs $195 a year also includes access to a smartphone app, something that wasn’t available in 2005. We’re confident that the frequent users of NYTimes.com will find great value in our current site, which includes not just high quality written journalism but also video, blogs, slide shows and other features that enhance our ability to keep you informed.

Now we have not only the basic outline of the new system, as well as an explanation of how it differs from the unlamented Times Select. Now, really, the new plan raises two quite different questions:

(1) Is this a good idea?

(2) Will it work?

To illustrate how different these questions are, consider that, hypothetically, it's possible to answer yes to (1) and still have no idea about the answer to (2). For the record, pressed to give short answers, mine to both would be an emphatic "I dunno." But that doesn't stop me from having thoughts on the subjects.

(1) IS THIS A GOOD IDEA?

I imagine to a lot of confirmed online habitués the answer will go beyond a simple "No" to "How dare they?" However, as much as I've enjoyed free access to all that content, especially in the several years since I gave up home delivery of the paper, I have to recognize that it's preposterous and ultimately economically impossible to be giving all that content away.

But then, this same preposterousness that seems to me inherent in much of the thinking about the future of the Internet and print media. Once consumers are accustomed to free content, how do you ever persuade them that "free" is not necessarily a fair price for content such as the NYT -- for all my well-registered grievances with it -- provides. In the simplest terms, is it really not obvious to one and all that if the company can't generate revenue from the stuff it publishes, it can't afford to continue publishing the stuff?

I'm not absolutely alone in worrying about this, but I recognize that those of us who do are standardly written off as old fuddy-duddies, incapable of appreciating that the Brave New Media World sets its own norms, and will develop its own economic model and forge ahead. The thing is, beyond this blithe assurances, I haven't gleaned any hint of what that new model might be, and trust me, I've been keeping my eyes and ears open. There's plenty more that can be said on the subject, and maybe we'll come back to it, perhaps even tomorrow, but for our immediate purposes it seems to me important to see that if you're the NYT, seeing nothing but shrinking revenues from your print product, you're grappling with an economic model that is simply (to use the fashionable word) unsustainable.

YES, YES, BUT (2) WILL IT WORK?

I could be cute and say it depends what you mean by "work." For example, even if it doesn't work great the way you or I would define working great, I suspect that the Times Company, which is known to have taken this dramatic step with grave reservations, and great dissension within its corporate ranks, has to commit itself to making it work, and may not be able to afford to pull the plug as it did with Times Select. They may simply have no other visible options.

They seem to have put a lot of thought into this, trying to come up with a system that's reasonably fair, and then developing and (so they say) testing the technology to actually make the system work as of Monday. It seems that the much more modest Times Select system was fraught with operational problems that contributed to its unworkability. But to get back to the question, I guess I might say that for their sake I hope it works. And for all our sakes as well, because however unsatisfactorily the NYT may perform the information-gathering job it's taken on, nobody else is prepared even to give it a shot.

In the sense that you or I might mean by "work," though, I don't see the scheme working. Sure, a fair number of people will subscribe, but I'm guessing that hordes more won't. They ("we"?) are just too used to getting that content for free, and are apt to decide that that magic number of 20 really can satisfy all their NYT needs. So the company will take in a bunch of money, but at the cost of a serious loss of visibility, and possibly even influence -- neither exactly a boon to the newspaper's continued pertinence or survival.

For what it's worth -- likely not much -- I can't imagine that I'll be subscribing. I already undergone my NYT withdrawal when, as I mentioned, I discontinued home delivery, no longer able or willing to deal with the daily anxiety of wondering whether I would have a paper when I got downstairs to my building lobby. (The fact that I never knew whether missing papers had been stolen or never delivered only added yet an additional layer of anxiety.) At first I assumed I would buy the paper every morning. I didn't. (By the way, if you're wondering whether this might qualify you for a free digital subscription, the answer, Mr. Spurl tells us is thanks for your loyalty but uh-uh. ("We do encourage you to take advantage of the large amount of free content that will still be available to you on NYTimes.com and on our mobile apps.") Then I assumed I'd be checking the website home page every morning. I didn't do that either.

I'll be able to manage Paul Krugman's eight or nine columns a month with my 20 free articles, and perhaps I can economize by getting to them via links. (Non-Times links, that is. Mr. Spurl informs us that clicking on a link in one of the paper's e-newsletters will definitely count. The good news is that you can go back to a piece you've already been "charged" for for free.) I'll be sorry not to be able to check out PK's blog, though. (Mr. Spurl informs us that while access to the home page and to the front pages for all newspaper and blog sections will be free, actual posts, including blogposts, will count toward your "20.") The truth is, though, that I often go a couple of months without remembering to check the Krugman blog.

Actually, I suspect that the NYT executives who advocated and designed the plan weren't counting on me. Consider this Q-and-A:
Q. I'll never have a smartphone or an iPad and don't want to pay for access on those devices. Will there be a computer-only plan?

A. At launch, we have chosen to offer subscription packages that combine Web reading with other platforms. This is based on research we conducted last year with a large number of our readers, which demonstrated that many Times readers preferred to have access on multiple platforms and devices.
Meaning that even in the cheapest package you're paying for smartphone access whether or not you have any intention of using it. Like I said, I guess they weren't expecting my business anyway.

So, as you see, while I turned out to have stuff to say, very little of it contributes to actual answers to the two actual questions. I do wonder, though, what everyone else is thinking about this development. At least come Monday I'm expecting to have a little extra time every day.
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4 Comments:

At 6:56 PM, Anonymous mediabob said...

I've already deleted the app on my iPad. As you, Krugman, and some of the Dining Section, was about all I read. Most of the better blogs cover the same topics without the corporate spin. I look forward to the good reporters going freelance and sending their work to the highest bidder. I'd pay $9.95 a month for the good stuff, but not for everything the NYT packages now.

 
At 12:51 AM, Anonymous Anonymous said...

I would like to know how the Times' mgmt settled on the subscription price of $15/month. With the downward mobility of most Americans these days, it's a price that effectively removes many from the Times' readership. But I suppose when your ads are coming from Bulgari, Tiffany and the like, the average American isn't your target audience.

What I fear happening is that the Times readership and viewpoint will track a shrinking socio-economic landscape confined to the Manhattan/DC corridor. It will become the total echo chamber for the rich, if it isn't already.

While I believe that newspapers must find a way to charge for content if they are to survive, I wonder if micropayments or ultra-low subscriptions would generate more revenue by dint of sheer numbers. Why wouldn't the Times want the widest readership possible? Would a $5/month or even a $15/year subscription bring in more revenue by being more affordable? When your product is electronic rather than print, your costs are relatively fixed and every new subscriber is gravy.

I'm sure the loss of a certain democratizing effect is one of the motivating factors behind the departures of Frank Rich and now Bob Herbert. Herbert particularly has been the voice at the Times for the poor. What happens when the people he's been writing about can't even read his columns?

 
At 5:50 AM, Blogger Dave in Northridge said...

well, if you already have a free account with the NYT, Lincoln (yes, the car company) is giving out free subscriptions for the remainder of 2011. Go to the NYT home page, log in as soon as you get there and (at least this is how it worked yesterday) click on one of the articles in the "Fashion and Style" section -- the offer will come up on your way to the page.

This would be a gift horse I'm definitely not looking in the mouth,

 
At 9:52 AM, Anonymous Anonymous said...

The printed paper may not be free, but like any other the newsstand price doesn't come near paying for the actual costs of reportage and printing, and the subscription price, being lower, even less so.

Like any other newspaper (or magazine), the NYT carries advertising, and that's what pays for its creation — the Times is selling access to its readership, a bunch of eyeballs that its advertisers hope will throw $$$ their way.

The online Times is, like other newspaper website adjuncts, infested with ads. And in fact the Times Select setup was mildly profitable. The trouble was that those whose work was behind the paywall (especially columnists) lost much of their influence when their online readers weren't able to link to paywalled articles with any certainty the articles would be accessible to the general, non-subscribing public. You can see the same results from Murdoch's recent London Times paywall — inbound traffic has plummeted because no one can be sure their readers can follow links through it, so why bother?

(I for one was saddened when Times Select went away, as it segregated pernicious criminals against journalism and humanity like Thomas Friedman, Maureen Dowd, and David Brooks away from the general populace. It was unfortunate that Paul Krugman was also affected, but I could live with that.)

Anyone who's read the NYT for a long while knows it's not a great paper, and is as likely to mislead as to inform. It inflated Whitewater into a national sex carnival when there was no there there because it was worried about missing Watergate again. It inflicted Judith Miller and Curveball on the public and lied us into Iraq, killing hundreds of thousands and wasting hundreds of billions of dollars that we could sorely use just now. It withheld at Bush's request information about illegal domestic NSA surveillance so he could be re-elected in 2004. It routinely violates its own guidelines about using anonymous sources to present unverifiable and often false propaganda so it can maintain a clubby relationship with those it is ostensibly reporting on. Its editor Bill Keller traffics in gossip about Julian Assange while with the other hand relying on Wikileaks to supply it with raw material.

Face it, if the fiction of corporate personhood ever evolves to the point where corporations can face the death penalty for crimes against humanity the NYT will surely deserve consideration as much as GE, Exxon or Monsanto will.

 

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