Why New York Times Switched Its Mobile Revenue Model

Read original story on: The Verge

The New York Times just released an update to its iOS app, NYT Now, that fundamentally altered the prestigious publisher’s business model on the mobile platform. Instead of a subscription-based model priced at $7.99 per month for full digital access, the app is now retooled to be ad-supported, granting all interested readers—with or without subscription—access to an editorially curated selection of articles. In addition, the relaunch of the app is sponsored by Delta airline, with future brand sponsorships to come.

The choice between subscription-based model and ad-supported model has long been a dilemma for media owners to consider when it comes to entering the mobile space. Many prestigious content brands, such as HBO and ESPN, have gone with subscriptions so as to keep their offers consistent across platforms. Yet more and more content owners, especially digital publishers, are starting to realize that the old subscription-based model that worked in print doesn’t translate well in the mobile-first world.

The bottom line here is, the choice between the two revenue models is not so clear-cut. It takes careful evaluation of various factors for brands to figure out which one works for their mobile offerings.