How much does it costs users?
All Digital Access: $8.75 per week (billed every 4 weeks at $35.00)
NYTimes.com + Smartphone App: $3.75 per week (billed every 4 weeks)
NYTimes.com + Tablet App: $5.00 per week (billed every 4 weeks at $20.00)
Source: http://www.nytimes.com/content/help/account/purchases/subscriptions-and-purchases.html
What was their price scheme before the paywall?
Nytimes.com offered free access to all online content prior to the paywall. With the paywall in place, visitors and non-subscribers can view 20 articles per month. The home delivery subscription now includes the all digital access package.
What was the reasoning behind the move to the paywall?
In a letter to New York Times' readers, Arthur Sulzberger said that " the introduction of digital subscriptions is an investment in our future" and "[i]t will allow us to develop new sources of revenue to strengthen our ability to continue our journalistic mission as well as undertake digital innovations that will enable us to provide you with high-quality journalism on whatever device you choose."
Who is their primary source of competition?
According to http://www.wikinvest.com/stock/New_York_Times_Company_(NYT), the New York Times' main print competitors are the Wall Street Journal, USA Today and the Washington Post.
Strengths and Weaknesses
The paywall allows visitors to access up to 20 articles a month, which allows for new potential subscribers. It also does not alienate print subscribers or force them to pay a separate subscription for online content; digital access is included in the Home Delivery subscription.
The paywall's main weakness is that it can be easily bypassed. This is also it's strength.
Felix Salmon makes this comparison in his blog post:
"Now imagine that both of the gardens above were open to anybody paying an annual membership fee. The gardens on the left would have many more freeloaders — people who just saunter onto the grass and enjoy the sunshine without paying. The ones on the right would be much more effective in keeping such people out.
But here’s the thing about freeloaders: if they value what they’re getting, a lot of them will end up paying anyway"
Source: http://www.wired.com/epicenter/2011/08/new-york-times-paywall/
