Report: New York Times online subscription will cost less than $20/Month

By Chris Hogg

Citing unnamed sources, Bloomberg is reporting the New York Times will charge less than $20 per month for full access to its online newspaper when it launches its paywall later this month.

As Bloomberg reports: “The price has been set at less than the $19.99 that customers pay for a New York Times subscription on Amazon.com Inc.’s Kindle reader, said the person, who declined to be identified because the price hasn’t been made public yet.”

The price point is in-line with what New York Times president Scott Heekin-Canedy said last month, when he announced it would be comparable to the Kindle subscription.

The paywall issue is a big one for media publishers who fear a switch to a paid-only option will drive away readership, which in-turn will affect advertising. The issue has been big in media circles since The Guardian reported The Times Online in the United Kingdom saw its online readership drop by almost 90 percent after the paywall went up. Numbers from Nielsen Co. show a 40 percent drop in the first several months after the paywall was announced, Bloomberg notes.

“Times Co. and other newspaper publishers are trying to determine how much of their online content should remain free, how much can be moved behind a paywall, and how much to charge for access,” Bloomberg reports. “The companies are seeking new revenue sources as print advertising and circulation revenue decline amid competition from Internet publications.”

Janet Robinson, CEO of Times Co. said some content will remain free but the company will begin charging for content in the first quarter of this year.

The New York Times will allow visitors to its site to read a set number of articles each month before being prompted to pay for full access. The number of stories visitors can read for free has yet to be announced. Print subscribers will have full access to the online publication at no extra charge.