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Four reasons why charging mobile users for news sucks, NYT edition

The New York Times is considering charging for content delivered via the iPhone and other mobile platforms. According to the head of NYT’s digital operations,

“For publishers to offer their content for free in the mobile platform forever without getting paid very much money, I don’t think it’s going to be tenable”

This is a bad idea. It’s the tragic love child of Mr. Head-in-the-sand and Ms. Bite-the-hand-that-feeds.

To begin with, this idea is remarkably short-sighted. It seeks to squeeze the maximum juice from the lowest-hanging fruit without a thought to what this will do to the tree itself.

Also, it’s contemptuous of an crucial audience: mobile-based readers will be a larger audience than desktop-based ones, are also likely to access the site throughout the day, as opposed to only in the morning and at lunchtime, and because they will likely view a mobile-optimized site, will require less bandwidth per person than “normal” users will.

Then, it’s stupid: the NYT offers no reason for charging mobile-based readers of the NYT other than that they are, well, mobile. It is the same as the inexplicable extra charge levied by Indian Railways for bookings made over the Internet. The Indian Railways gets away with it because it is a Government monopoly. The NYT will not be that lucky.

Finally, it’s also lazy. Right now, the “mobile edition” of the NYT is no more than a trimmed-down version of the main NYT website. No more. If it went truly mobile – breaking news pushed to subscribers’ smartphones, live scores, full page customization – it will be worth charging for. It can also monetize the mobile website through display advertising, in the same manner it monetizes the main website.

The NYT has a wonderful opportunity to engage a massive audience with its high-quality content, but it doesn’t seem to have the people in place than can seize it.

Update 10th July 2009: The NYT digs its head further into the sand, considers $5/month subscription for online access. That might be fine by Americans, but it’s Rs. 250 for me. Too much.


June 28, 2009 ·  Post to Twitter ·  Email this ·  Uncategorized ·  Leave a Comment


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