Friday, July 16, 2004

[Rick Bruner] NYTimes.com Planning to Go to a Paid Model?

My friend Rick Bruner comes with this rumor:
 
"Sure, New York Times Digital made a 23% profit last year, but its overall revenue of $88 million accounted for only 3% of the NYT Company's total $3.2 billion in revenue. So, as much as NYTD is a darling in the online sector, it's a zit on the ass of the parent corporation. Moreover, it's a zit that some senior management at the company are itching to pinch, still concerned as they are about online's 9 million readers canibalizing the print paper's 1 million daily readers.

In particular, NYT Co's president and CEO Russell Lewis, former SVP of circulation, apparently really doesn't see the point of giving away the paper's content for free when online readers contribute only $11 a year to the paper's overall revenue compared to $900 for print readers, according to this timely Wired piece. "