Henry Blodget, Alley Insider
On the News Corp conference call last night, Murdoch hammered home our point about why the New York Times (NYT) should charge an online subscription fee.
Advertisement – story continues below
Murdoch noted that the Wall Street Journal, which charges a subscription fee, generated $120 million of online ad revenue last year. The New York Times, which doesn’t charge, only generated about $150-$175 million (our estimate).
Combining the two fees, the Wall Street Journal is the larger online business. It also doesn’t have to slash its ad prices because it has a huge glut of online inventory, the way the New York Times does. It is more insulated from ad depressions like the one we’re enduring. And it has a valuable paid relationship with a million subscribers who it may be able to sell additional services to.
Photo credit: terrellaftermath