NYT: Finding the Sweet (Sub) Spot
Rumors bouncing around the web tonight indicate a predictable split on pricing at the New York Times. $30 a month, say the print side. $10 a month, say the digital people. If it were all that simple. There’s a multi-tasking, hybrid Times reader that tablet pricing must test. Look at this way: we love the idea of tablets, but have little idea of how much and how we’ll use them. Every day reading, when we’re a few feet from our main computers? Mainly, when we’re on the go? When we’re recumbent? The best scenario for the Times (and others) is to keep loyal print subscribers, and offer them the chance to sample the tablet NYT experience, at a no-brainer price; maybe a $9.95 a month. Collect some money; track how actual usage changes. Then, price on an introductory basis for those that want a tablet-only experience. Most importantly, build in tiered pricing potentials. For instance, the Times is moving on local/regional editions, now featured on the web home page and in the paper a couple of days a week. How about a regional add-on price for regional coverage smartly incorporated into the Times tablet product, or taking an out-of-the-box content solution to market, partnering with a Yelp or a Google or Yahoo Local, to delight tablet readers? Finally, those divining Times’ intentions would be well to remember that the company well understands that digital marketing/advertising dollars will be probably still be bigger than reader dollars. (“Denise, what can you sell on the tablet,” is one of the questions of the moment, for Denise Warren, NYT ad chief — and exec in charge of nytimes.com.) Getting that mix of substantial (and targeted) audience ramped up on the tablet, plus some sub money is the key — and no one’s got the algorithm for that, yet.
