New York Times Web readers to face fee

NEW YORK — The New York Times plans to charge readers for full access to its Web site next year, reviving an idea that fizzled twice for the newspaper.

This time it's betting it will be able to wring more revenue from readers without crimping its Internet ad sales.

Under the plan outlined Wednesday, it will adopt a "metered" system that will allow readers to click on a certain number of stories for free each month before fees kick in.

A metered system is designed to draw casual readers with free articles while getting fees from people who want to dig deeper on the site.

The fees won't be imposed until next year, giving the newspaper's executives more time to build the system and figure out the likely to dictate whether the gamble pays off. The pivotal issues include determining how much to charge and how many stories will be free each month.

The only certainty is that subscribers to the printed version of the paper will still get unlimited free access to the Web site.

That could help the company sell more subscriptions to the printed newspaper among a portion of Internet readers who figure they may as well get the newspaper delivered to their home or office, too, as long as they have to pay to read everything online.

With a long history of award-winning reporting and commentary, The New York Times should be able to lure a substantial number of Internet subscribers, said newspaper analyst Mike Simonton of Fitch Ratings.

"It's a very unique franchise and it has a very loyal readership," he said.

The Times has a paid weekday circulation of about 928,000.

However, it attracted just 4,000 subscribers when it first tried to charge for Internet access during the Web's infancy in 1996.

Another experiment called Times Select took a more moderate approach, requiring a $50 annual subscription to read Times columnists. That effort drew 221,000 subscribers, but dented ad sales enough to persuade the newspaper to scrap the product in 2007.

The newspaper learned a lot from its experience with online fees and is confident it has come up with a concept better suited to today's reading habits, said Bill Keller, executive editor.

"A key to the plan is its flexibility," Keller wrote in an e-mail. "We can calibrate the amount of free content you get before you get a pay message in order to avoid sharp drops in traffic and advertising."

The newspaper also indicated it will meter the material it makes available on other online channels, such as through mobile phones, electronic readers and tablet computers. No further details were provided.

The metered approach has worked well for the Financial Times, a more specialized U.K.-based newspaper whose upscale audience is interested primarily in economic news.

The Internet generates between 10 and 15 percent of newspaper ad sales, and the figure is expected to rise.

The New York Times could face an especially painful backlash because it has one of the largest newspaper followings on the Web, with 12.4 million visitors last month, according to the research firm comScore.

More newspaper publishers are now likely to take the leap too, said Greg Harmon, CEO of Belden Interactive, which consults with publishers about Internet fees.

"This is like the industry is being given the permission to charge, almost like in a papal sense," Harmon said.

About 150 U.S. newspapers already have imposed Internet subscriptions, with fees ranging from as little as $1 per month to as much as $35 per month, based on a recent study conducted by ITZ/Belden Interactive.