The New York Times today has reduced the amount of free articles you can read on a monthly basis before they prompt you to take out a paid subscription. The new limit came down from 20 to a paltry 10 a month.
Over the last year the New York Times as amassed a huge digital subscription base which stems from their online publications. They have quickly attained 500,000 paid subscribers and many have initially started checking out the free online articles and news stories. A few weeks ago the CEO of the New York Times said in a press release that “Today, close to a half million people are now paying for digital content … We knew that readers placed a high value on our journalism, and we anticipated they would respond positively to our digital subscription packages. Our commitment to all of our subscribers, both print and digital, is that we will continue to invest in and evolve our journalism and our products.”
Venturebeat claims that in its most recent quarter, The NY Times saw overall revenue drop 2.8 percent for the quarter, and profit fall a sharp 26 percent. That’s because the 11.1 percent increase in digital ad sales couldn’t make up for the 7.1 percent decline in print advertising. With that trend likely to continue, the NY Times needs to shore up its business with a new revenue stream, digital subscriptions, which it also leverages to increase its overall print circulation.