Nieman Foundation at Harvard
America’s Test Kitchen, “the Consumer Reports of cooking,” wants to grow to new platforms
ABOUT                    SUBSCRIBE
Aug. 7, 2014, 2:10 p.m.
Business Models
LINK:  ➚   |   Posted by: Joshua Benton   |   August 7, 2014

At Digiday, Lucia Moses notes a new possible New York Times pricing tier:

The New York Times is considering a cheaper version of its digital subscription as it continues to look for ways to get more revenue out of consumers.

According to a survey sent to readers this week, the new offering would give users 30 articles a month for $8, over 45 percent lower than the current cheapest offering. Now, for readers who hit the paywall at 10 articles, digital access starts at $15 a month for access to and Times smartphone apps.

Good on the Times for testing out new pricing strategies, and I wish them the best. What the Times does here will have a broader effect on the many other American newspapers who’ve launched paywalls and found their initial subscriber growth stall or reverse course.

But I have to think if an underwhelming number of people are willing to pay for NYT Now — a very polished product with a lot of added value — this isn’t going to be a revolutionary money maker for the paper. As always, the biggest leap in pricing is from free to 1 cent — the act of paying (and committing to future payment, in a subscription) is the bigger hurdle than $6 vs. $8 vs. $15.

That said…unlike NYT Now, the cost of developing this new product should be relatively minimal, and maybe it makes sense to get whatever marginal dollars you can from the price sensitive. Apple has famously, even with a stripped down product strategy, sought to offer products at a variety of stair-stepped price points:

Tim Cook once said he wanted to make sure “that we don’t leave a price umbrella for people” — in this case meaning a market opening for non-Apple tablets that would be substantially cheaper than the iPad. But (a) the iPad’s market share has been dropping substantially anyway. And (b) in the case of tablets, an expensive product is competing with a less expensive product. In online news, any paid product is competing with free.

Show tags Show comments / Leave a comment
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
America’s Test Kitchen, “the Consumer Reports of cooking,” wants to grow to new platforms
“We’d like to move to other platforms, particularly as we see the changes in how people consume television.”
A program from Poynter and ONA is helping foster a community of female leaders in digital media
The Women’s Leadership Academy provides camaraderie and concrete advice beyond a bundle of platitudes.
Come talk ad blockers with Nieman Lab and a set of experts in New York
We’re having our first event in New York City with industry leaders: Wednesday, December 2 at 6 p.m.
What to read next
How one blog helped spark The New York Times’ digital evolution
“I certainly had editors tell me that I shouldn’t be wasting my time on Bird Week. But that was the best part of City Room…We were like unsupervised children.”
572News outlets left and right (and up, down, and center) are embracing virtual reality technology
Among those experimenting is The Wall Street Journal, which plans to open source its 360-degree mobile video and VR technology and hopes to turn VR into more of a mainstay of its storytelling.
502Podcasting in 2015 feels a lot like blogging circa 2004: exciting, evolving, and trouble for incumbents
The same trends we saw a decade ago — professionalization on one hand, platformization on the other — sure seem to be playing out again.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Fuego is our heat-seeking Twitter bot, tracking the links the future-of-journalism crowd is talking about most on Twitter.
Here are a few of the top links Fuego’s currently watching.   Get the full Fuego ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
The Atlantic
Animal Político
Las Vegas Sun
Media Consortium
Ann Arbor News
Poynter Institute
Los Angeles Times
Foreign Policy