New York Times plans for 2011 pay wall

With revenue down at most media outlets, yet another newspaper company announced plans Wednesday to introduce a paid content model.

According to a Bloomberg article released Wednesday, New York Times online users will be allowed free access to a set number of articles per month, and charged a fee to read more.

This so-called “metered model” reflects that used by the Financial Times, and will be put into effect in 2011.

Jon Friedman at Market Watch reported that the Times had been brainstorming ways to increase revenue since their unsuccessful paid-content program, Times Select, was terminated in 2007.

With a timid entrance into paid content models, Friedman said the Times management seemed “paralyzed by a fear” of possibly making the wrong move.

“Perhaps only the D-Day invasion required as much meticulous, torturous planning as the New York Times Co.’s decision,” Friedman wrote.

In the age of blogs and free content, making money while keeping customers is a dilemma many publications are facing.

Bloomberg reported that the New York Times has experienced a significant drop in circulation and ad revenue which has led to staff lay-offs, the sale of it’s Manhattan headquarters, and a decline in share value.

It’s no secret that newspapers are a business, and a business with sinking revenues must change their game plan before the company collapses.

Analyst Barry L. Lucas told Bloomberg that the newspapers new business model was a good choice for them because it allows them to continue bringing in casual readers while monetizing the dedicated patrons.

With similar products being given away for free and more competition entering the field daily, even one of the world’s most popular newspapers is losing money at a rapid rate.

The business of newspapers is changing, and only those that can discover a revenue model that works will succeed. Will the New York Times lead the way? Only time will tell.