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Why I think the New York Times' business model will succeed.
I read today that the New York Times will be charging for website content usage in the year 2011. I think they'll do great. In fact, I think if done right, that they will have a real impact on other content based online services and mark the formal beginning of a shift to paid content business models. I should start by saying I know NOTHING about the newspaper business. I'm not basing my opinion on "industry expertise", but rather on a general understanding of the web and how it's evolving. There is an incredible amount of content being added to the web every day. Sadly the majority of it is either mundane, recycled or duplicated. The fact of the matter is that the greatest content (in this case written) is going to come from those who are passionate about their art, not necessarily about how they can get more page views to increase ad revenue. I will say that The New York Times does need to tread lightly. Their success is far from a given. The driving force behind the adoption of it's users will be further innovation when it comes to the delivery of content. Kindle for example has made great strides in the monetization of digital media due primarily to it's "ease of use" factor and integration with Amazon. The combination of iPod and iTunes has resulted in the sale of over 8.5 billion songs, all while the music industry is kicking and screaming about piracy. How many of us gladly pay extra for digital cable and a DVR so that we can enjoy commercial free shows on premium channels like HBO? Or so we can fast forward through the ads on Family Guy and other recorded shows? The highest quality content delivered the best way will win every time, even if it costs us a few extra dollars.
