Paywalls Pay Off at NYT

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The NYT’s paywall strategy succeeded to the tune of $91M this year, according to Bloomberg. That’s huge proof of concept for a payment model that many people thought would never work.

Now, it looks as though the paywall may be part of the answer to the online subscription model… part of it. The paywall, according to reports, generated 12% of subscription sales in 2012, which outpaced advertising sales by $52.8M all-told. As I’ve written about before, subscribers do pay the bills now at the NYT.

The NYT is at the forefront of a paywall model that innovators and old school publishers are both flocking to. Newsweek is retreating to a online-only model. Google, on the other hand, is trying to wedge its way in.

From Bloomberg:

During the 12 months after the paywall was implemented, the Times and the International Herald Tribune increased circulation dollars 7.1 percent compared with the previous 12-month period, while advertising fell 3.7 percent. Subscription sales more than compensated for the ad losses, surpassing them by $19.2 million in the first year they started charging readers online.

About Josh Loposer

Josh is the managing editor of Digital Marketer, as well an aspiring novelist. Find out more about what Josh is working on on Facebook, Google, or on his website.
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