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NY Times Confident of 'First Click Free' Paywalls

eldavojohn writes "One thing you might notice on Slashdot is that when someone submits a story linking to nytimes.com, it doesn't always work. While it's not truly a paywall, it appears to stop the user and require registration... sometimes. If you noticed this and it's seems to be non-deterministic in when and where it asks you to login, you're simply noticing the latest strategy of 'first click free' being employed. We've heard that normal paywalls are a miserable failure (the Wall Street Journal's, one of the more successful, only lets you see the first paragraph online). Will the drug pusher approach work out for The New York Times? The CEO seems to be certain that this blogger (and Slashdot) friendly paywall is the correct option and will keep The New York Times as a 'part of the conversation' online when news is rapidly circulating." I will tell you that if I am asked for a password, I almost always reject the story immediately, or go find a better URL. Heck, yesterday I rejected a NY Times story for this exact reason. So we'll see how it pans out.

40 of 193 comments (clear)

  1. Why the paywall won't work by Pojut · · Score: 5, Insightful

    There are already so many different places to get news from with such a variety of bias from all sides (and, on rare occasion, from no side), I see no reason to actually pay for news online. Sure, some of the bigger sites will get attention, but with smaller companies taking over the news on the Internet (Huffington Post, Drudge Report, etc), I have a feeling that pay-for news will eventually become quite scarce.

    1. Re:Why the paywall won't work by betterunixthanunix · · Score: 4, Interesting

      Enough people will pay, especially for the New York Times. The goal is not for everyone to pay, and they could not care less about whether people have access to their newspaper. They just want to make money, and they probably will. There are enough universities out there willing to pay enormous subscription fees.

      --
      Palm trees and 8
    2. Re:Why the paywall won't work by eugene+ts+wong · · Score: 3, Interesting

      That's interesting. If universities pay researchers, then maybe paying journalists is a great idea. I personally wish that we could get away from that, but it would be something that I would explore.

    3. Re:Why the paywall won't work by tompaulco · · Score: 2, Insightful

      I agree. The only way news sites will be able to make money is if they adopt the cell phone model, where the user is not really aware that what they are doing is costing them money until it is far too late.

      --
      If you are not allowed to question your government then the government has answered your question.
    4. Re:Why the paywall won't work by sheriff_p · · Score: 3, Informative

      Depends. I already pay for The Economist as a news source. Sure, there are plenty of other places to get "breaking news" online. If I want to read high quality journalism ... less so. When the NYT goes proper paywall, I'll pay. When the Daily Mail does, I'll rejoice ;-)

      -P

      --
      Score:-1, Funny
    5. Re:Why the paywall won't work by zach_the_lizard · · Score: 2, Interesting

      What does the NYT (or any large paper) offer me that I can't get straight from the source (AP) for free? They haven't been doing much real journalism in years, so I'm at a loss.

      --
      SSC
    6. Re:Why the paywall won't work by bws111 · · Score: 5, Informative

      The AP is NOT the source, the newspapers are. AP is owned by the newpapers. AP gets it's stories from the member newpapers (they also have some of their own reporters). When there are no newspapers, there is no AP.

    7. Re:Why the paywall won't work by Deep+Esophagus · · Score: 2, Insightful

      I feel for the big newspapers, really I do. They spend a ton of money getting firsthand news (ignoring the wire services for the moment), spend another couple hundred kilos of money formatting it nicely for the web, and we want it all for free. They put ads up, we use ad blockers. They give up on all those reporters' salaries and just use wire services, and we complain that there's no local content. We (as consumers) need to give the content providers SOMETHING that justifies all the money they spend on the content, or it won't last and the only news sources left will be J. Random Blogger and his incendiary, ill-informed rants against one party or another. I don't know about you, but "It was in The Times" carries a lot more weight for me than "It was on Slashdot" or "It was on Drudge" or "It was on Goatse" or whatever.

    8. Re:Why the paywall won't work by MightyYar · · Score: 2, Insightful

      (Huffington Post, Drudge Report, etc)

      Then we're all doomed. Those "news" sites are just aggregation blogs which do about as much fact-checking as Google News's automatic robot. Just last week Huff Post actually reposted the kind of trash you get in your in-box from your grandmother - that first week she has email, when she's still tying in ALL CAPS. There are now TWO correction updates, and they STILL don't have the facts right. Would it have killed them to at least run a check on Snopes? Does anyone really think that they "soak" food in ammonia?

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    9. Re:Why the paywall won't work by yelvington · · Score: 4, Informative

      What does the NYT (or any large paper) offer me that I can't get straight from the source (AP) for free? They haven't been doing much real journalism in years, so I'm at a loss.

      If you think that, it's because you don't actually read the New York Times.

      I'm looking at the NYT homepage right now. There are three wire stories. Everything else is original work by one or more New York Times reporters.

    10. Re:Why the paywall won't work by bws111 · · Score: 2, Informative

      No. The AP is owned by the newspapers. All of it's funding comes from the member newspapers. Yes, there are some 'AP' reporters who are not working for a specific paper, but they are still paid by the collective of the papers.

    11. Re:Why the paywall won't work by Americano · · Score: 2, Informative

      Now if that is the price I am willing to pay for PAPER versions, then I feel that e-books, which are nearly pure profit for the publisher, are way overpriced. I think $3-5 is a reasonable price for an E-Book . Of course I would pay more for a technical book, but I would still expect that an E-Book should be 30-50% of the cost of it's paper cousin TOPS.

      You realize that the cost or printing & distributing the paper book is a fairly small fraction of the cost of publishing it, right? Most of the cost of creating the book has nothing to do with the mechanics of putting ink on paper - proofing, layout, art, editing, author royalties - all of this is still a part of the process, regardless of the form the final product takes.

      Looking at Barnes & Noble's web site, a quick scan of paperback books indicates that many of them are priced in the $12-$15 US range, versus $9.99 for an ebook version. The difference between an ebook and a paperback book is - of course - that the publisher doesn't incur printing, distribution, and warehousing costs, but that could very well be covered by the discount of $3-5 per copy. Why would you expect the price of an ebook to be so much lower than the cost of a paperback, given that printing, distribution, and warehousing are the only parts of the publication process that they eliminate (or have a chance to save significantly on - server infrastructure & distribution still costs them *something*, just much less than shipping bricks of paper around.)

      I don't understand this argument that somehow because something is in digital form, it should "be almost free" - if you value the content, the value, and much of the cost, is *in the content* not in physical medium the content is distributed on/in. Why is $9 a vastly unreasonable price for an ebook, given all of the effort from numerous people that must go into producing that book, and where printing & distribution are some of the smallest parts of the cost?

    12. Re:Why the paywall won't work by Americano · · Score: 2, Informative

      I'm basing this off of numbers available from self-publishing / publish-on-demand services, and conversations with a girl I dated for a while who worked as an editor for a fairly large publishing company that does much of its business in paperbacks.

      Most of the small offset printing services seem to run somewhere around $3/unit for runs of ~2000 units; Price-per-unit declines as the volume of the run goes up, and it's trivially obvious that a large publishing company will have high-volume arrangements with printers, further reducing their costs.

      Many of these mass-market paperbacks sell for $10-15, making the physical printing costs approach ~10-20% of the total unit cost (actual numbers could even be lower for some books & publishing companies). And yet there's this assumption that eliminating printing from the process, but nothing else, should reduce the price of the book by 50-75%.

    13. Re:Why the paywall won't work by QRDeNameland · · Score: 2, Informative

      Enough people will pay, especially for the New York Times.

      I wouldn't be so sure. They already tried to implement a limited pay wall called "Time Select" in 2005 and was discontinued after two years. The most prominent thing that was charged for was their Op-Ed columnists (Maureen Dowd, Tom Friedman, Paul Krugman, et al.), and guess what, they all complained bitterly about it because it greatly decreased their readership and influence. In Friedman's words, "I hate it. It pains me enormously because it’s cut me off from a lot, a lot of people, especially because I have a lot of people reading me overseas, like in India ... I feel totally cut off from my audience." However, the main reason for its failure seemed to be a recognition that subscription fees did not make up for the loss of ad revenue from decreased traffic.

      Why they think a pay wall will work any better now is beyond me. My best guess is that they figure with more people using mobile devices and e-readers that more people will be willing to pay, but from what they are describing, I'd think they'd get an even bigger drop off in traffic from the new pay wall. Time(s) will tell.

      --
      Momentarily, the need for the construction of new light will no longer exist.
    14. Re:Why the paywall won't work by ediron2 · · Score: 2, Informative

      Um, you contradict yourself a bit there. On those occasions where one of the AP's 'own reporters' writes a story, the AP *is* the source. This is akin to war or political-campaign news stories relying on a 'pool' reporter. On short-term work (chilean miners), a nearby journo or freelancer is often put on contract for the duration.

      As for GP, there are fewer papers and news agencies assigning reporters and sportswriters and etc elsewhere. Sharing / pooling writers and photographers is cheaper. The NYT, Reuters, news mags, etc still put reporters on assignment, at which point THEY ARE the source. While NYT's reporter count is way down, they're still their own primary sources on a LOT of content.

  2. Pay For The Internet? by WrongSizeGlass · · Score: 3, Funny

    What, people want us to pay to access some stuff on the internet? What's next, /. offering subscriptions?

    1. Re:Pay For The Internet? by e065c8515d206cb0e190 · · Score: 4, Insightful

      Here comes the myth. "Advertising will pay for it". Why is Zuckerberg trying so hard to monetize Facebook? Because advertising doesn't pay. This year (yes, 2010) is the first year Youtube is expected to turn a positive result (meaning that Google has yet a long way to make that investment profitable if you count since 2005).

      The bottom line is you can't expect advertising to be a miracle solution. Everyone hates ads. A lot of people block them. The click rates are low. And yet people want content for free. Am I missing something here?

    2. Re:Pay For The Internet? by larry+bagina · · Score: 3, Informative

      He's not a billionaire because of advertising, he's a "billionaire" (on paper) because of his facebook stock (which isn't traded on the open market so the valuation is arbitrary and based, more so than usual, on hype). So starting a high growth company pays.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    3. Re:Pay For The Internet? by ObsessiveMathsFreak · · Score: 4, Insightful

      Am I missing something here?

      The fact that the intrinsic worth of content has gone down to almost zero.

      Sure, you can argue about how hard people have to work to produce content, etc, etc. But sooner or later the whole world is going to have to wake up to the fact that the complete works of William Shakespeare take up less than 2MB, and this is only going to get worse. Sooner or later, a complete list of all Paramount pictures will fit in a single portable hard drive and will be transmittable over a home internet connection in less than a day. It doesn't matter what legal, ethical, commerical or social system you put in place against this. Eventually, your system will buckle under the sheer weight of what the new digital reality has done to the distribution of content.

      This isn't an argument for or against piracy or bloggers freeloading off news. It's an argument for why content such as news is increasingly becoming something people don't see it worth paying for. And I understand the paradox here: it now costs more to make content--even something as cheap as news--than it does to distribute it to the entire world.

      Advertising can pay for the distribution no problem, but there is probably no existing commercial model left which can pay for the content. If you can't profit on something that you're distributing to the entire world, the game is up.

      Society has spoken; it's not willing to pay for commercial news, either directly or through advertising. We could switch to a subsidized or public service model of news, or have no news at all. But commercial news services are about to become increasingly scant (not that they weren't becoming so anyway). People are not going to pay for a newspaper that has less data than one of their friends facebook pictures. People might not like to hear this, but this is where the almost zero cost of data has taken us.

      --
      May the Maths Be with you!
    4. Re:Pay For The Internet? by Cheech+Wizard · · Score: 2, Informative

      Here comes the myth. "Advertising will pay for it".

      Advertising paid (and pays) for radio, for TV (OTA Free TV may be on the way out, but that's only because of limited broadcast range and the success of cable and satellite 'services'), for magazines and pays for lots of other things things. It's no myth. I have web sites online and have since 1996. They all pay for themselves through advertising alone and I do quite well, thank you. There are many ways to monetize a business in addition to advertising, as well. For musicians it may be concerts, as an example of how free music can work for a musician or band.

  3. And i am sure. by Anonymous Coward · · Score: 2, Insightful

    People STILL won't pay for news they can go get from somewhere else for free.

    If its any kind of 'news'. It's going to be covered in more than the NYT.

  4. Seems not to like Corporate networks or something by IBBoard · · Score: 3, Insightful

    I've been asked to login after what was (I think) my first click of the day, so I think it might not like corporate networks that proxy lots of people through a very small number of IP addresses!

    I'm sure there are sites out there to help with "free account required" login pages, but what's the betting that they start slowly creeping the payments in and creeping the freebies down?

  5. Automatic back button by nicolas.kassis · · Score: 3, Insightful

    When I see a news site requiring registration or subscription I just hit the back button. I don't think I've ever subscribe to any news site. There is just no point considering there will always be open news site (Always,Murdoch and al. can't do anything about this). If the first click is free then it might entice me to check out the site for more news and potentially sign up. It would need to be high quality news site to get me to sign up. NYT is probably one of about 5 newspapers that can even attempt such a model. My local paper became subscription only online. I use to check the site out every day. I haven't check it since the change.

  6. If You Want an Example by eldavojohn · · Score: 4, Informative

    I submitted a story a few days ago. Click the link once, then close the page. Then click the link again. You should get a paywall. I was a bit confused by the comment that iamhassi posted on it until I tried to visit the page again. It's happened before but now their strategy is clear and verified. Oddly enough when Soulskill retooled it and pushed it out, the new link is immune to this.

    The Slash code seems to adjust my links sometimes and I've told CmdrTaco about this but it's really evident on nytimes.com articles.

    --
    My work here is dung.
    1. Re:If You Want an Example by Captain+Spam · · Score: 3, Funny

      I submitted a story a few days ago. Click the link once, then close the page. Then click the link again. You should get a paywall.

      Hi. Look at my submission. Now click the link. Now back to the submission. Now BACK to the link. Sadly, you should get a paywall. But if your link didn't go to a corporate dinosaur's website, it wouldn't smell like a paywall. Scroll up. Now back down. Where are you? You're on Slashdot. What's in your hand? Back up to me. I have it. It's a mouse, clicking on those links you like to see. Now look at me. The mouse is now diamonds. Anything is possible when you use the power of the world wide web to freely distribute information regardless of payment or network. I'm on a computer.

      --
      Demanding constant attention will only lead to attention.
  7. "miserable failure"? by abigsmurf · · Score: 3, Interesting

    Murdoch's paywall was hardly a miserable failure. The subscriber figures they gave initially did indicate a massive drop in reader numbers but when you compare the amount each user is worth as an ad viewer, compared to how much they're worth as a subscriber, at worst they only had a slight drop in revenue (I did the figures in that other story, CBA to work through them again), at best they had a slight rise in revenue. It does at least hint that a paywall solution is a lot more viable than lots of people thought.

    And that was based off of their initial subscriber figures, if they've experienced a reasonable amount of subscriber growth, they would be making more money than with the ad supported site. Would be interested in knowing if their figures have gone up or down.

  8. Porn mode by spectrokid · · Score: 2, Interesting

    If I surf in porn mode, can NYT see I've been there before?

    --

    10 ?"Hello World" life was simple then

    1. Re:Porn mode by CarpetShark · · Score: 3, Funny

      "Porn mode" protects you from your wife, not from the internet. Or your boss.

  9. Other news sources by Xanlexian · · Score: 2

    This is why I don't use NYT for a news source. There's plenty of others out there.

    --
    "Congratulations, Boots. Your robot has become self-aware. You're a daddy now." -- Dr. Rho Bowman
  10. Re:Why I like the NY Times by somersault · · Score: 4, Insightful

    What the hell has the quality of a city's sports team or other nebulous measure of quality got to do with whether or not you want to read a newspaper from that city? Presumably there are many crappy newspapers in NY too.

    I just don't read "normal news" newspapers, so I couldn't really care less whether they want to charge or not.. if every news site started charging I don't know what I'd do, since sites like slashdot link to several news sites a day.. though in Slashdot's case the real worth is often in the actual comments rather than the stories.

    --
    which is totally what she said
  11. WSJ is so easy to work around its funny by Shivetya · · Score: 2, Informative

    I take the title of the shortened article, paste it into Google, and usually I find a version in the first two entries that allows me to read the entire article. It must be a barrier to the lazy.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  12. A hyperlink is a citation by tepples · · Score: 2, Insightful

    Remember back when the we had the World Wide Web, that ingenious system where any document could have a hyperlink to any other document? The problem with paywalls is that they kill that system -- your links suddenly become blocked with demands for money.

    A hyperlink is no more than a citation backed by a best-effort automated retrieval system. Documents can cite documents on the web with <a> elements. Before that, documents could cite documents on paper with footnotes. Just because the retrieval is automated doesn't mean it has to be without payment.

  13. I dissent by pickens · · Score: 2, Funny

    There are stories, generally op-eds, "think pieces," and commissioned pieces with original research that appear on the NY Times and no where else.

    As an example, I submitted a story yesterday about Isaac Newton on new historical research that explains why he spent thirty years of his life working on alchemy.

    That story is only on the Times and no where else.

    http://www.nytimes.com/2010/10/12/science/12newton.html

    Take a look at my submission. I think it's a good story and based on my experience, one that slashdot normally would have accepted.

    http://slashdot.org/submission/1354636/Isaac-Newton-Alchemist

    Show me where you can find that story anyplace else on the web.

  14. quality of journalism by No.+24601 · · Score: 2, Insightful

    I think the NYT is going to work doubly hard, even triply hard to gain some sort of competitive advantage in their quality of journalism. Yes, they have some great stories. But to be totally honest, most of what they write about or offer opinions on is stuff that can be found somewhere else on the Net nowadays. I'd say they are not much worse, but also not much better than a lot of other news sites out there. Good luck to them if they create a stupid pay wall.

  15. Re:No local news- who cares? by wjousts · · Score: 2, Insightful

    Yeah, really. How can anything outside the few square miles I live possibly have any effect on me? Ideally, I want a newspaper that only covers the events in my house. I'm going to have my dog be my crack investigative reporter looking into my wife's cutting corners when it comes to making my dinner. My cat covers sports.

  16. Losing subscribers and advertisers by Comboman · · Score: 2, Informative

    Murdoch's paywall sites (with the exception of the WSJ) are not just losing subscribers, they're also losing advertisers. A newspaper can't survive on subscription fees alone, advertising has always been the largest source of revenue.

    --
    Support Right To Repair Legislation.
  17. Good journalism is worth paying for by jburroug · · Score: 2, Interesting

    I've had an account with the NYTimes site for longer than I can remember and I've happily signed up for every pay scheme they've tried. Reporters work hard to provide a valuable service and I'm happy to pay for it. I might be a bit of an anomaly given how poorly news papers and magazines are doing these days, but I also pay for a print subscription to the The Economist, Popular Woodworking, Fine Woodworking, MAKE and Discover. Information I care about, thoroughly researched and professionally edited has real value to me. I hope the Time's latest attempt at attracting readers and making money off them works out, given the problems at the Tribune family of publications right now America is desperately low on world class news outlets as it is.

    Not to say that paywalls aren't a touch annoying and disruptive and I don't want to buy a full subscription to every publication that has a single article I'm interested in, but I wouldn't mind paying some small fee for the one story I wanted to read. The problem is finding a way to sell users a single article at a fair price that isn't overwhelmed by the transaction costs of processing the payment. The market needs a really good micropayment system, that can profitably handle transactions in the $.25-1.00 range. The digital equivalent of pocket change has yet to show up outside of walled off services like iTunes and other app stores.

    Cheers,

    Josh

    --
    "Listen: We are here on Earth to fart around. Don't let anybody tell you any different!" - Kurt Vonnegut
  18. BBC's model by pckl300 · · Score: 5, Interesting

    I like BBC's model. News is paid for by the citizens, and is available to everyone, even non-brits. It's like information is a right. And, despite being funded by the government, they don't seem to have much slant that I can detect.

    --
    In the beginning, there was null.
    1. Re:BBC's model by geekoid · · Score: 5, Insightful

      It use to be like the in the US. TV news was paid for my the government.
      Many idiots on /. will equate the to controlling the news. But if you look at it in that time period, it was not biased in that manner. When the feds cut the funding, they had to make money by appeasing advertisers. Which has become being a mouth piece for the corporation that sponsors them.

      Some time I try to think about how Fox et' al. would have shown the McCarthy hearings. Scary.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  19. paywall devalues free traffic by stefanPryor · · Score: 2, Interesting

    A little while ago I was reading on wikipedia about new york city's financial problems circa 1975. The wikipedia article claimed "there was a compromise between the city and the public unions", a link to an old new york times article was provided as a citation. I followed the link and encountered some kind of registration/log-in page, I suppose if I were to register, next I would encounter some sort of paywall. I simply did a google search for "new york city 1975 union compromise" and the first result was time magazine online, which provided me the full text of an article on that subject, dating back to that era. Contained on the page I viewed were links to more content from the same media conglomerate, perhaps customized to be more topical and relevant with the aid of an analytics company like google.

    If new york times cannot generate a profit on free traffic, they need to look into partnering with someone who can. Putting a paywall in front of non-exclusive content devalues that content.