Back to top

Analyst Blog

The New York Times Company (NYT - Analyst Report) stated that traffic visiting and mobile Website ( or users through mobile applications can now have limitless access to video content for free. This applies to both subscribers as well as non-subscribers.

Although this Zacks Rank #3 (Hold) company started to offer unlimited access to video, yet the cap of 10 free articles per month remains. The company had fixed a monthly charge of $15 for accessing articles over the restricted number on its website and smartphone applications; $20 for unlimited online access and on Apple Inc.'s (AAPL - Analyst Report) iPad tablet computer application; and $35 for online, smartphone and iPad application.

 The company chose to charge readers for online content due to shrinking advertising revenue and seek new revenue avenues. The publishing industry has long been grappling with sinking advertising revenue.

The New York Times Company’s advertising volume came under pressure as advertisers shied away from making any upfront commitments in an economy which is showing an uneven recovery. This comes in the wake of a longer-term secular decline as more readers choose free online news, thereby making the print-advertising model increasingly irrelevant.

Despite hiccups in the economy, the online subscription based model still promises a guaranteed revenue generation avenue. The New York Times Company’s pricing system for was launched on Mar 28, 2011.

Another media conglomerate, News Corporation (NWSA - Analyst Report) has also moved toward an online subscription-based model for general news content. News International, a subsidiary of News Corporation, began charging readers for online content for The Times of London and Sunday Times of London effective Jun 2010.

Gannett Co., Inc. (GCI - Analyst Report) has also initiated a subscription based model, commenced Digital Marketing Services in top markets, and refurbished its iconic brand USA TODAY to generate new advertising and marketing revenue sources.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%