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Citigroup sees New York Times pay wall as working

BusinessWeek 06/13/2011 18:51
Citigroup sees New York Times pay wall as working - Citigroup - USA - New York Times - Business - media


A Citigroup analyst on Monday said The New York Times' strategy of charging for online subscriptions is probably working, judging by comments from the Times and other papers.



THE OPINION: The Times began charging for full access to the website in late March. In April, it said more than 100,000 people had become paying subscribers. Sales of online subscriptions now appear to be "robust," analyst Leo Kulp wrote in a morning research note.

THE ANALYSIS: The downside to charging for website access is that it drives away casual visitors, reducing the number of viewers for advertising. But Kulp believes the loss of online advertising revenue is likely minimal, because comments from other newspaper chains suggest that online ads aren't selling well in any case.

Together with new subscription income, this suggests the online "pay wall" will push earnings before interest, taxes, depreciation and amortization above expected levels, Kulp said.


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