The Times’ Paywall and Newsletter Economics. It is, perhaps, the end of the beginning.
In early July, Rupert Murdoch’s News Corporation placed its two London-based “quality” dailies, the Times and Sunday Times, behind a paywall, charging £1 for 24 hours access, or £2 a week (after an introductory £1 for the first month.*) At the same time, News Corp also forbad the UK’s Audit Bureau of Circulations from reporting site traffic*, so that no meaningful measure of the paywall’s effect was available. That situation has now been partially reversed, with News reporting some of its own numbers: they claim 105,000 total transactions for digital content between July and October.* (Several people have wrongly reported this as 105,000 users.
Disappointing Times paywall numbers don't add up. Play Paywall!, the new web game sweeping the newspaper industry. It’s entirely possible that The New York Times will net a profit from their newly announced paywall, set to debut in a year’s time. But it’s by no means guaranteed. Even (momentarily) setting aside the journalistic or civic-minded concerns about shutting some readers out of the news, the whole idea makes little sense if the basic math doesn’t work out.
Making money would seem to be the most basic marker of a paywall’s success. Unfortunately, no one knows for sure whether it will.