The document discusses the paywall system adopted by The New York Times, which allows up to 20 free articles per month before requiring a subscription fee. As print revenue declined due to the shift to digital, online advertising was not sufficient to replace the lost income. The Times had to decide between a "leaky paywall" that allows some free access or a "bulletproof paywall" with no free access. It was determined that a leaky paywall would be better initially to attract more subscribers and generate website traffic through social media. Both print and online newspapers are needed, as online versions are more convenient for today's mobile lifestyles.

1. SHUBHAM PARSEKAR
PGDM2/1539
DATE: - 05-01-2016
1 | P a g e
THE NEWYORK TIMES PAYWALL - CASE
Case synopsis
The case revolves around the issue of Metered Paywall System adopted by The New
York Times that allowed up to Twenty free articles per month and if extra articles
required, they need to pay Subscription fees. Since there was a change in trend from
Traditional newspaper to Digital, revenues from Online advertising were not
sufficient to replace the loss of print revenue. Many newspaper and content creators
were in dilemma of switching to the paywall system would be successful and can it
sustain for long time. The Times had to make a decision whether they should go
with the “leaky” paywall or a “bulletproof” paywall model.
Product strategy
1. Number of Free Articles
The limit of Twenty free articles for users who surfed on The Times content is very
much accepted as from the case study it is derived that the vast traffic on the website
is made by casual users rather than paid subscribers and since in the initial year of
entering into online platform of newspaper it is very much essential to rope in as
much as subscriber base as possible.
2. Pricing
As per (Exhibit 11) , which shows us that $450 charged by The New York Times is
almost double than The Wall Street Journal charges. Therefor the company should
consider changes to be made in the pricing model for subscription as well as for the
advertisement to be place into the e-paper.
3. Leaky or Bullet proof paywall is good?
For initial days, i.e. The New York Times should go with the Leaky paywall model
as they need more subscribers to increase their awareness and generate more traffic
to their sites from various platforms like Facebook, twitter, linked-in, etc. and since
it’s a e-newspaper which is largely preferred by youths over the traditional
newspaper, so they should go with the Leaky paywall model.

2. SHUBHAM PARSEKAR
PGDM2/1539
DATE: - 05-01-2016
2 | P a g e
4. Is online Newspaper or print newspaper complement or substitute?
Online newspaper is and will become a substitute to traditional newspaper as today
is the trend of Technology and on the go lifestyle, so e-newspaper will very easily fit
into these culture and it will match the requirements of the young and working class
people, who would like to read news while travelling and in their busy schedule.
CONCLUSION
They should adopt a mix model, i.e. continue with the traditional as well as opt for e
newspaper with a Leaky paywall model as this will lead to some problems with
revenue generation initially but certain efforts need to be made to generate revenue,
like attracting young readers to enrol for the e-newspaper and organize a online quiz
state level or national level which will generate a word of mouth among the students
and colleges, which will be very much helpful for the “The Times” in Long Run.