According to a report in the New York Times (NYSE: NYT), it looks like the Financial Times will provide some degree of free access to its site -- that is, up to 30 articles per month.
Sounds kind of wimpy to me. Why not just provide it all for free? Isn't that the trend?
After all, the NY Times recently ended its subscription service. Murdoch is reportedly mulling the same thing for the Wall Street Journal. And we are also seeing the free-trend in other areas of media, such as television shows.
I talked to Rafi Mohammed about this. He is an expert on pricing and is the author of the book The Art of Pricing. According to him:
"In my business of pricing, all too often I see companies give away value with little hope of any return. However, the recent spate of free giveaways in the media business make sense. Newspapers like the New York Times are offering free access because if they don't, they risk losing relevancy to online news sites like CNN and Yahoo! (NYSE: YHOO). In the case of television, what does it matter if people watch advertisements on their television or on their laptop? Giving away television shows (with advertising) downloads is directly in line with television's current business model."
Tom Taulli is the author of various books, including The Complete M&A Handbook
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