Frédéric Filloux of Monday Notes on NYTimes subscription pricing.

The New York Times paywall is like the French tax system: expensive, utterly complicated, disconnected from the reality and designed to be bypassed.

The New York Times’ pricing structure, the fact that it is also designed to protect the paper’s physical circulation, the paywall’s porosity all complicate projections. One thing is sure: $35 a month ($420/year — $455 year for 52wks) to view the online paper on three devices is ridiculous, not matter how elitist the target group is fantasized to be. You simply don’t charge such an amount in a (US) market where services like Hulu or Netflix cost $7.99 per month.

Source: NYtimes’ Fair Price

But what if they are testing the water? Selling digital subscription is fairly new media business for them. There are no fixed rules.  So they are starting with something that they can control better in future: high pricing. They can always reduce price if response do not meet expectations. Can you do that by starting with a lower price?

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