Gordon Crovitz, the former publisher of the Wall Street Journal (and a board member of this publication), has endorsed the New York Times’s new paywall.Specifically, Crovitz says that, if the NYT doesn’t blow it, the paywall will generate an extra $100 million of revenue a year.
That compares to about $150 million of digital advertising revenue the online version of the paper currently makes.
And that’s super-high margin revenue, by the way. Almost all of it will drop to the bottom line.
Crovitz is also the founder of Press+, a company that helps newspapers charge for content online, so he’s obviously optimistic about these things. But the numbers are certainly compelling.
“Done right, a “freemium” approach such as a meter is a big win for news publishers. The publishers using Press+ for metered access to web sites and other digital products are keeping all their online ad revenue and their visitors month to month, as they add the new revenue stream from online subscriptions. We estimate the N.Y. Times should be able to generate $100 million in new revenues with this approach.”
By the way, if you’d prefer not to pay for a digital subscription to the New York Times, you don’t have to. Here’s how to keep reading it for free >