'New York Times' follows Murdoch example with bold plan to charge for online access

Internet payment model is a test for newspapers struggling toretain readers, writes JENNIFER SABA in New York

THE NEW York Timeswill begin charging for full access to itsarticles and other content on phones, tablet computers and theinternet, in a bold plan that risks alienating readers of itspopular news website, nytimes.com.

Readers who do not subscribe to the namesake newspaper of the NewYork Times Company (NYT Co) will be able to read 20 articles permonth on the website for free but will have to pay to read more, thecompany said. Subscribers to the print edition will have access tonytimes.com.

The newspaper launched the pay model in Canada on Thursday andplans to roll it out elsewhere on March 28th.

The pay model is a big test for large-circulation generalinterest newspapers, which have struggled to retain readers andadvertisers as more people get their news from the internet.

NYT Co's strategy is similar to that of Pearson Plc's FinancialTimes, which has had some success charging high-end business readersfor online access.

The Wall Street Journal,once a newspaper targeted to financialprofessionals, is also at the forefront of charging for online news,even as it has broadened to become a more general newspaper underthe ownership of News Corporation, whose chairman and chiefexecutive is Rupert Murdoch. The Journal is now the largest USnewspaper.

NYT Co's pay model allows casual readers to access the New YorkTimes, unlike some other strategies such as News Corp's paywallexperiment with the Timesof London. The British paper bars anyonewho does not pay from reading its website, which has resulted in a90 per cent plunge in visitors.

About 31.4 million individuals visited nytimes.com in February,according to online research measurement firm ComScore.

"We need to make sure that part of our business continues togrow," said Martin Nisenholtz, senior vice-president of digitaloperations at NYT Co. "The way we think we can do that is takingthis metered approach, charging the folks who are drinking deeply."

This is the second attempt by the New York Timesto charge fordigital news in hopes of diversifying its revenue stream.

It will charge $15 per month for unlimited access to nytimes.comand a smartphone application; $20 for online access and an AppleiPad app; and $35 for online, smartphone and iPad.

NYT Co said it would begin using Apple's subscription service inits apps store by June 30th.

Readers who come to Timesarticles from other sources such asblogs and social media sites will be able to access content even ifthey hit the limit. However, the Timesis limiting free articles onGoogle to five per day.

"Today marks a significant transition for the Times, an importantday in our 159-year history of evolution and reinvention," NYT Cochairman and publisher Arthur Sulzberger Jr said in a statement.

The newspaper attempted to make readers pay in 2005 but droppedthe plan after two years.

It remains to be seen whether people will pay for digital news.In the case of the three dozen newspapers that have moved to onlinepay models, only 1 per cent of readers have opted to pay, accordingto a recent study by Pew Research Center's Project for Excellence inJournalism.

NYT Co shares rose 0.3 per cent to close at $8.89 on the New Yorkstock exchange. - (Reuters)