No Easy Pass to New York Times Website?

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New York Times (NYSE: NYT) has a survival plan. It's just not a very good one.

The newspaper giant is considering a $5 monthly fee for access to its flagship NYTimes.com website, according to Bloomberg. Subscribers of the print version would be offered a discounted price of $2.50 a month to check out the site.

It may sound fair, on the surface. New York Times employs some of the finest journalists in the country. The iconic paper doesn't just hire any columnist. In a vacuum, who would dare deem it unfair to hand over a fiver for access to a month of columns from Pulitzer Prize winner Maureen Dowd and the economic dissections of Paul Krugman?

The problem, of course, is that we're not in a vacuum. That sucks for New York Times.

Executive Editor Bill Keller took a serious jab at Google's (Nasdaq: GOOG) news aggregation site three months ago.

"If you're inclined to trust Google as your source for news, Google yourself," he said while speaking at Stanford.

Isn't that the print media's problem? It either doesn't understand -- or doesn't want to understand -- that the world has changed. Knocking Google instead of embracing it is as poor a strategy as erecting $5 tollbooths when freeways are multiplying.

Google and Yahoo! (Nasdaq: YHOO) have reached out to the inksmiths, offering them ways to populate their online pages with targeted ads, fleshing out their classifieds, and directing news-hungry portal visitors their way. In a few cases, print media has chosen to bite the hand that news feeds it.

Newspapers just don't get it. In the real world, they may be the only game in town when it comes to daily print editions. In larger cities like New York and Chicago, they still have no more than a print competitor or two.

It's a whole new world in cyberspace. In many ways, online resources are even better than the best newspapers.

  • Why should I read one movie review, when News Corp.'s (NYSE: NWS) Rotten Tomatoes can provide the pulse of all critics for free?
  • Why settle for a single tech news source when Techmeme uses editors to compile the best stories from the Web or Digg can direct me to the best content that's available for free with its user polls?
  • Is there any true sports fan who still needs to read the morning paper to learn about the prior day's scores? Disney's (NYSE: DIS) ESPN.com and CBS's (NYSE: CBS) Sportsline are there with the box scores, recaps, and team-specific discussion boards that make newspapers practically irrelevant. Now that most smart athletes have Twitter accounts, the chatter about rumors has also migrated online.

It's true that News Corp.'s Wall Street Journal has succeeded with an online subscription model, but that's with news that moves markets. Having an investing edge creates a financial windfall. You don't get that with a scalding expose on local politicians or an in-depth review of a new stage show.

Slapping a cover charge may seem fair on paper, but it will shrink New York Times' online audience at the worst possible time.

How would you save the newspaper industry? Submit your lifelines in the comment box below and I'll be back next week to discuss some of the suggestions.

Other signs of the Times:

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Longtime Fool contributor Rick Munarriz doesn't mind getting ink on his hands when he reads the morning paper, but he is starting to wonder why it's yesterday's news. He does not own shares in any of the companies in this story, save for Disney. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 10, 2009, at 5:33 PM, RKatha wrote:

    I work for a company whose business model is being eaten alive by the global internet economy. We're knowledge workers suffering under executive leaders who have no clue how to address the problems facing the business, yet they continue to trust their business instincts and gamely fund desperate new solutions by slashing at the bottom line.

    Herein lies the future of the newspaper industry. At my company we need an underground newspaper. We are divided and without influence or shared awareness of executive decisionmaking.

    That's the future of the newspaper industry. Custom editions, custom newspapers that serve the interests of disadvantaged populations. Report to us the executive activities and decisions we should know about. Unite us, give us energy, and help us overcome the weight of our installed leadership and our broken culture. We will all subscribe.

  • Report this Comment On July 10, 2009, at 5:34 PM, RKatha wrote:

    I work for a company whose business model is being eaten alive by the global internet economy. We're knowledge workers suffering under executive leaders who have no clue how to address the problems facing the business, yet they continue to trust their business instincts and gamely fund desperate new solutions by slashing at the bottom line.

    Herein lies the future of the newspaper industry. At my company we need an underground newspaper. We are divided and without influence or shared awareness of executive decisionmaking.

    That's the future of the newspaper industry. Custom editions, custom newspapers that serve the interests of disadvantaged populations. Report to us the executive activities and decisions we should know about. Unite us, give us energy, and help us overcome the weight of our installed leadership and our broken culture. We will all subscribe.

  • Report this Comment On July 10, 2009, at 5:45 PM, SCWinehound wrote:

    For years, maybe decades now, I have been surprised that publishers (especially metro dailies) don't leverage their advertiser base by extending value-added incentives to their subscriber base. In other words, convert their subscription fees into membership fees and build a portfolio of member benefits that drive traffice to advertisers retail businesses. One need only look as far as AAA and AARP for successful precedents. People belong to Triple A not just because it gives them someone to call when the tire is flat on the buggy. It's because they get killer discounts on lodging, tickets to attractions, etc. Ditto AARP. But publishing's separation of church (journalism) and state (advertising and the filthy lucre of commerce) have made it very difficult for publishers to seize these types of model shifting initiatives. Maybe with their backs to the wall that will change, but if the NY Times is any indication, maybe not.

  • Report this Comment On July 11, 2009, at 10:45 PM, lanzar wrote:

    I'm one of those throwbacks that actually subscribes to the paper edition of the New York Times. I read it over breakfast and on the subway on the way to work. Yes, I could buy one of a number of portable devices to read the online edition of the New York Times, or any other website for that matter, but for various reasons I prefer stuffing an actual newspaper into my briefcase on the way out the door. A home delivery subscription to the New York Times isn't inexpensive, either. Let's just say it costs more than $5 a month. So the New York Times is going to have to explain to me why I should pay for access to their website when I already pay to subscribe to their newspaper. To coin a phrase, that's double dipping. Not that I think it is a good idea for the New York Times to charge for website access [it isn't] but I do think that people who already subscribe should be treated as subscribers.

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