NYT announces 100,000 online subs… but no future clarity yet
The New York Times has revealed “sign-up” numbers for its new online model launched on March 28th. However, as with many of the new online models currently, these figures can be no more than an initial indicator until renewal levels come into play, and initial offers run their course.
More than 100,000 people have paid for online access to the New York Times since the paper began charging.
The site remains free for people who read fewer than 20 articles a month, a group that represents about 85% of the site’s more than 30 million unique visitors a month. Anyone going above the 20-article threshold is prompted to sign up for a monthly subscription. Costs range from $15-$35. For $15 you get access to the website and a smartphone app for $15 every four weeks. As with the Times model in the UK, print subscribers receive access to the site as part of their subscription.
A further 200,000 heavy NYT Online readers received free unlimited digital access for the rest of the year via a promotion underwritten by Ford Motor’s Lincoln brand. They won’t have to choose whether to pay until 2012, and are not included in The Times’ count of 100,000 digital subscribers.
The NYT is also running a promotion that offers the first four weeks of unlimited digital access for 99 cents, subscriptions that are included in the 100,000 count disclosed today. This deal automatically renews at standard prices if readers don’t actively unsubscribe.
The target is for 300,000 subscribers in year one.
A company spokesman said: “So soon after the launch, the Company does not yet have visibility into conversion and retention rates for these paying customers after the initial promotional period, although early indicators are encouraging.”
An early analysis by Experian Hitwise, found that visits to the New York Times Online were in the region of 5%-15% lower in the 12 days following the launch of the paywall than in the 12 days prior. Page views came in 11% to 30% lower.
The scale of the digital issue is put into context with regard to the group’s financial picture. First-quarter earnings fell 58%. Total advertising revenue fell 4.4% as a 7.5% drop in print advertising revenue was offset by a 4.5% rise in digital revenue. Circulation revenue fell 3.7%.
Operating profit was $31.1m in the first quarter of 2011 compared with $52.7m in the same period of 2010. Costs rose slightly to $535.4m from $535.2m, and newsprint costs increased 12%.
Gannett Co, publisher of USA Today reported a 23% fall in first-quarter earnings, blamed on declining advertising revenue from its newspapers.