Kent Pitman

Kent Pitman
Location
New England, USA
Title
Philosopher, Technologist, Writer
Bio
I've been using the net in various roles—technical, social, and political—for the last 30 years. I'm disappointed that most forums don't pay for good writing and I'm ever in search of forums that do. (I've not seen any Tippem money, that's for sure.) And I worry some that our posting here for free could one day put paid writers in Closed Salon out of work. See my personal home page for more about me.

MY RECENT POSTS

OCTOBER 23, 2011 6:21PM

These Unfriendly Times

Rate: 19 Flag

MEMO
to the New York Times

First, permit me to say that your prices are too way too high.

How could the political Right possibly call you a liberal mouthpiece if you’re not even targeting customers outside the 1%. Who among the 99% has $200 or more per year to spend to receive news they can get for free on the web? I know I do not.

Call me communist if you like. I’m not, but you can call me that if it somehow soothes you. I’d be willing to pay a reasonable amount to have access to the Times. But $195 a year for your cheapest digital plan? That is, if I only want it on one of my digital devices? And $455 if I want it on “both” of my devices? Seriously? When your incremental cost of having me as a customer is nearly zero? I know you’re used to charging a lot for the paper edition if I live far away, but that was because everyone knew there was a lot of physical paper that had to be printed, shipped, and carried to my door. You have none of those costs any more. You take my money and tolerate a trivial amount of bandwidth to get me my data. We all live right next door to you now, and we aren’t expecting paper, so we want a rational price. I don’t think that’s asking too much.

If you’re wondering why you’re not getting more people subscribing, your pricing is surely why. It’s a travesty.

Annoyed with all that, we even explored your “Shared All Digital Access” plan to see if somehow a family plan would bring the price within reason. It doesn’t. It can be claimed a slight improvement over not having such an option, but I am profoundly disappointed in you for not solving the problem of “whole family” subscriptions at a rational cost. What you lose in individual sales over what you wish you’d get, you’d make back up in volume, I think.

Moreover, it seems clear to me you’ve tried to dodge criticism of this plan as a “family” plan by calling it a “shared” plan, but we the public, especially those with an interest in your publication, are not fooled. This is plainly a family plan—just not one properly set up for families. I realize you need money, but gouging the 1% is not the way to do it. Find a way to appeal to the 99% and you’ll do fine.

Yet you run television advertisements that boldly assert that the new digital subscriptions offer ‘all the value’ that print subscriptions had. They don’t. Shame on you for trying to claim premature victory without confronting this really major problem.

One very important bit of value in the paper edition of the New York Times is that you can leave it laying around the house and it will be readable by other household members who are almost certainly not subscribers. This includes anyone from the very young to those in college. Asking us to tell our kids they must log into mommy or daddy’s account is not an acceptable thing. Nor is asking us to fork over hundreds more per year just to have one child get their own proper subscription. There is nothing even remotely family friendly about this option.

The paper edition may be of value to some of our parents as well, who may have moved back in with their grown children to save money. Shared expenses for food, heat, telephone, and newspaper are examples of useful consolidations. Digital subscriptions offer you the opportunity to make that expense consolidation harder, but is that really your goal—to break even on the backs of poor senior citizens?

For years the print version was available in machines where you dropped your quarter or 50¢ or $1 or whatever the price was into a physical box and then opened the box to reveal he entire stack of newpapers. People could have taken all of them. But the stark reality of this situation was a moment of important life learning for many of us. It was a chance for parents to explain that if people just take all of them, the nice newspaper people won’t stay in business. This is where many of us came to grips with the fact that trust makes the world go around. If a few people cheated, we learned to think poorly of them, and the New York Times was still none the worse for it. Because most people learned honor.

Speaking of our societally shared values, it can’t have escaped your notice that our society is bifurcating into “haves” and “have nots,” between the 1% and the 99%. The antidote to this is knowledge, and our best hope is a community of the well-educated. The richest among us will have money to buy subscriptions for their budding heirs. Please don’t lock out the kids of our poorer citizens, as this is likely to contribute to the ever-widening chasm between the two groups. Invest in a healthy crop of new readers tomorrow by making it easy for them to become literate today.

Assuming you priced all the plans a bit lower, perhaps a family plan should still cost just a little more than a two-person plan. I don’t know, but I tend to think not. It definitely shouldn’t cost 50% more, or worse. I’ll bet the extra revenue you’d make by just offering a fair and accessible plan would broaden your base and increase your revenue enough to more than compensate for any abuse.

As to how many children should be covered—why not just ask the people as they’re signing up how many they have? I don’t think the typical case of someone trying to defraud you will be people walking up with their checkbooks open and trying to pay you while trying to cheat you all at the same time. There are easier and cheaper ways to get pirated content. Don’t overthink this. I claim you stand to lose more than you stand to gain.

I wouldn’t even object if you offered the dependent accounts in slightly restricted form, perhaps as read-only accounts without the right to post personal opinions—or perhaps allowing them to post but only if one of the parents reviews and approves it. That might be attractive for other reasons of privacy and safety anyway. Social media with “training wheels.”

I really want to support the Times, but I want fair value for a subscription and, your claims in your ads notwithstanding, you’re not yet doing that. So We’re not subscribing now. None of us. It’s all just too much. I was willing to pay something in support of your organization, but you’ve been unreasonable. What I’ll do instead is give to your competition, organizations that will be grateful to know I cared to support them at any level.

So while you’re tallying up the imaginary dollars you might lose due to abuse, and while you’re wondering what more content you have to add to get subscribers, consider this: You’re just priced badly. If you did it right, you’d have lots more subscribers and the price you needed to charge per subscription wouldn’t have to be as high. But it starts with you, not with me. A reduced-price trial subscription to a way-too-high regular rate is not fooling me and I suspect is not fooling anyone.

Treat your readers with the respect they are due, as has been your long tradition, and it may bring in new readers that you aren’t getting now—people you’ll want and need later. Plus it will allow you to hold your head high.

If you can’t do that, then my fallback suggestion is to hiring more ultra-right-wing “journalists” because your only market will be the super-wealthy. Maybe Colbert Platinum can give you some ideas. Good luck with that.

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Comments

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I agree. I hate to say it, but I get to my 20-article max each month, and then I bide my time until I can catch up again. I'd gladly pay a more reasonable price, but right now, it's out of control. I figure if I buy the occasional Sunday Times, and read the papers that get left on tables, I can red it, but I'd much prefer to support the Times with my money--IF I could afford it.
Lorraine, I'm glad to hear I'm not alone. I look at it and think “who in the world is forking over this much?” I hope they're not busy concluding by the low numbers of subscribers that “no one wants to pay” when there's such an obvious different conclusion to be drawn.
As a former New Yorker I regret missing the quiet pleasure of leisurely reading the NYT every morning with a cup of coffee and toast but whatever the claims of the paper it was never and is not now a liberal paper. Nevertheless it was worth the price at one time. Google can supply much of the forbidden content for free. I tried subscribing but the paper did not recognize my subscription and gave me such a run-around in trying to convince them that I was a legal subscriber I gave up and cancelled my subscription.
Jan, I had similar problems with Salon, actually. I paid for premium and then it didn't recognize me and kept making me watch movies like I was a stranger in order to get into the site. Very annoying. Especially since I almost never went there. I only bought the subscription as a show of support for Open Salon.
WOW! Welcome to Occupy NYT!!

You're all way ahead of me. I dread Sundays (I have a home delivery subscription to the Sunday paper edition) because I confess I dread the paper itself by now (as well as the recycling heft). Today's paper is still (presumably) lying at the end of my driveway. The one thing I look forward to about the whole wretched deal is finding out whether the guy who delivers is still in business. A nice local human touch. ;-)

R
One day soon, the privileged class will be forced to re-learn some old lessons the hard way. You know, lessons in stories like killing the goose that laid the golden egg -- aka the middle class. And maybe, just maybe, on some desperate future day, they may learn the lesson Henry Ford, the ultimate capitalist, tried to teach the robber barons of his day when they bitched about him doubling wages for the workers in his auto plant. Henry's reply was "Who the hell do you think is going to buy my cars?"
Marte, I hope he stays in business. But with prices like these...

Tom, yep, one of the things I like least about Capitalism is that it eschews any form of planning whatsoever. That doesn't make Capitalism useless, but it is not one of its best qualities. For some things, one really wishes that people would look ahead and see where present trends are leading...
Hear hear. I would pay a reasonable price, or even a fee per article after my monthly free limit. I am not hitting that limit anymore, as I just don't click on their articles to get their news, and save up my reads for health/science articles. Because, it seems, they are one of the few newspapers left that actually have science journalists covering science stories (it makes a big difference if your writer understands what they are talking about). Sigh. I used to do the weekly puzzle on sunday, after the magazine, when I lived in a home with a paper delivery. I could still get all of them saved for me, but I am disenchanted.
Seriously, though, with a few exceptional people, how many of us have the time to scour that paper every day? They are charging for total content, as if we had nothing else to do with our time but read every word they ever printed.
Oryoki, exactly. In the modern world, there are so many sources. It's as if they're saying “we have enough that you'll need look no further.” Or at least “well, ok, look further but it's OK if you don't pay anyone else.” Just because they have rich content doesn't mean we're reading it. And if all I'm reading is the same amount as I read from others, why the extra money just for them?
I have no idea how they set the subscription rates. Perhaps they fear that setting the digital rate too low will draw people away from the hard copy version.

Where I live the local library has NYT content available for free. It's just a day late. So on today, for example, yesterday's content became available. The format is not very attractive, but it is possible to do text searches back to 1984. It is also possible to browse daily editions. Not perfect, but compared to $400 just to get the news a little earlier, it's quite a bargain.
The other good thing about the paper copy is that it can be used to crinkle up in balls to light a fire in the fireplace or rolled in a way that allows you to swat flies.
rated with love
I'm not familiar with the pricing structures of the NYT, but I was aware you needed to be a paid subscriber to access their website. As you reported, it is very expensive and not many people who are part of the 99% would be willing to pay the amount you listed, especially when you already have "free" access to other major newspaper. I know I wouldn't.

At some point, we used to have access to the NYT where I live. If I remember correctly, the Sunday edition costs about $6. I bought it a few times (when I used to read different newspapers on Sundays). Since price of the hard copy version of all the newspapers I used to buy kept going up and more than half the space was devoted to advertisement, I haven't bought a newspaper in several years. As Jan points out, I also miss sitting with a coffee on Sunday mornings and reading my newspapers.
Perhaps the problem boils down to packaging. I am old enough to remember the newspaper panic when the radio started broadcasting news. The joke response at that time was that you can't wrap a fish in a radio. Perhaps better packaging is destroying newspapers but newspapers are still quite handy for lining canary cages.
Mishima, it seems like they could reach an equally equitable agreement with libraries digitally without having to lean so heavily on paper. Even so, I appreciate your sharing the scenario, which I'd not been aware of.

Kanuk, although I personally don't want to get the hardcopy edition, I have no great deathwish for it and can understand the tactile issue about the physical paper. I just think the hardcopy one is expensive because moving that much weight around is expensive; the digital one is expensive simply because they can make it expensive and they have some theory that people will pay. Well, maybe they're right. But if they go away it's their own fault. I really did try hard to find a way to buy some kind of subscription at a price I could afford and they didn't want my money. Simple as that. I hope they survive, but if they're working this hard to not find a way to take money from people, I won't be surprised if they don't.

Jan, it's always good to get dual use. :)
There is an old, old principle of capitalism that seems to have, all too often, just forgotten or put aside. It goes, “You’ll carry a heavier bag to the bank when you learn that you make more money by selling a thousand things you only make $1.00 each on than by selling ten things that you make $10.00 each on."

“Greed Capitalism" has much to learn about handling poultry of the golden egg laying variety, me thinks.

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Somehow I don't think any of this pricing policy will fly for the Times.
I agree that the pricing is all wrong, but I appreciate that the NYT is hiring real live people to write stories, and they expect those people to live on something other than cat food. And maybe go to the doctor now and again.

My local paper is slowly dying, shrinking every day. I still have the dead tree version delivered to my driveway. And what I'm paying for is NOT the dead tree pulp and ink, it's the people. The writers. The fact that someone got out from behind a desk and went out and researched something, and put it in words for me. Craigslist has all but killed the classified ads. Their revenue stream is dying.

The NYT is between the rock and the hard place--how do you pay a staff of reporters to do something that everyone expects now for free?

I don't know the answer. Obviously, they don't either. But they're trying to find one. I can't fault them for that.
skypixie0, yep. Thanks for the supportive quotations.

Lefty, that's my fear. I want them to succeed, but if they can't find a way to take money from people who are trying to give it to them when times are tight, that bodes ill.

froggy, I completely agree. It's great they are hiring real people. And the places I'd like to support are doing so as well. A place that only ever grabs the story of others isn't as important to me, though in a perfect world there'd be those, too. They could even make two tiers of membership. I, for example, don't care about access “on the go” so that's one way to go. Or they could have a volume restriction, just more flexible than the one for people who've paid nothing. Or they could just sell me the politics section and not the other sections. Or they could go the other way and offer me the same as someone else, but put a big gold star and the word “Sustaining Member” next to the people who pay more so they felt special for being a bigger contributor. There are many ways they could structure it to let me into the fold at a lower tier. They're not trying hard enough, I'm sure of that. Making me feel like I have no place at their table if I don't want to contribute more is what I'm sure is a losing strategy. That cannot engender good will.
Kent,
Perhaps they need an “ala carte” menue.

Comics......................................$1.50
Crosswords.................................1.50
Op-Ed.........................................2.50
Political Column.........................2.50
Letters To The Editor..................1.50

............and so on. Then let the readers “vote with their wallets” and chose by their own personal interests - an option available more and more on the internet. If newspapers wish to compete, they’re going to have to get with it!
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I like this on many levels. R. I especially like the paragraph about the paper machines; this actually WAS a lesson I had to teach my young, would-be entrepreneurs, who initially thought it would be a great way to make money.

I used to use the online Times all the time, but not much anymore. There's no good way to keep track of how many articles you've chosen to peruse over the month [and when does the month begin?]. Plus, if you're like me, you open a bunch of tabs of interest as you surf, many of which you are forced to close, unread, as bedtime nears. The NYTimes counts those against you. So, no more NYT for me, unless I end up there accidentally. I do miss it, but they're missing the point, and I take that more seriously.
skypixie0, I started to write some thoughts but they were so voluminous that I'm gonna spare you. I did read your comment, though. Nicely visual.

SoS, glad you liked the article. Thanks for stopping in and offering your support.
w Lorraine on this Rated.
A newspaper typically generates 70–80% of its revenue from advertising, and the remainder from sales and subscriptions.

I speculate that the way people read news from digital readers and computers is very different from how they read newspaper and you can't get as much money from selling advertisements as previously. Do people skim trough most of the paper and classifieds even in digital medium?

I speculate that NYT is pricing the product so that digital delivery pays for itself because advertisers are not valuing the digital medium as high as paper version. This is just my hunch.
Jonathan, thanks for visiting and for the data point.

CWa, it's an interesting analysis—thanks for offering it. You could be right about their motivation, but of course that wouldn't make the motivation automatically a good one. :) Digital advertisements represent a chance for much more targeted advertising than they could ever have done on paper, so it may be they're just not pursuing the right kinds of ads and are trying to treat digital as simply a different printing process. That would be a serious mistake. Also, of course, it argues for greatly reducing prices so they can hit the volume they want to make digital work; almost certainly digital ad prices assume that the internet is vast and that one can reach a truckload of people at low price. The NYT could certainly do that—it has the name recognition. But not at the present price point.
look at all these tags!

whoring to the max

i am keeping you up as an example
I get the "free" condensed version online. I refuse to pay for "online news". If I want the whole edition, I will buy the paper version when I feel in the mood.
I always considered the NYT to be the least biased news source in America, but lately it seems it only caters to the 1%. Since I am on the lower end of the 99%, I will look elsewhere for information.
Kenny, my point is that I want to pay the NYT for value received but I want to receive value, and they're making it hard. Certainly there are people who don't think they get value or don't want to pay, and they'll have a different need. But if the NYT is walking away from a willing customer, they're being fools. The incremental cost of allowing me to have that content is small, and so it's basically free money they are leaving on the table.
ume, the tags are there since people searching for those terms might want to find this article.