Lost in the avalanche of first and second thoughts about the New York Times new "Times Select" premium price product( www.nytimes.com/TS ) is the intent of Times Digital head Martin Nisenholtz. Martin told me that his revenue intention is a significant one -- 200,000 paying customers by the end of 2006, at the annual price point of $50.
“That could bring in $10 million,” he says. “If we reinvest half of that, you get a nice virtuous cycle going. You start to create what people want. We all need to experiment with new forms – Yahoo in Santa Monica
is doing it with entertainment – multimedia, mixing versions of what we now have and creating new content. All that needs to be paid for.”
Martin has been making the point for years. Newspaper websites are stuck in 2Gen mode, he told an SIIA conference back in January, 2004 in NYC. They are out of the profitability woods (1Gen), but shy of the 3rd Gen, when teams of creators actually produce and package interactive products. Those new products will be a far cry from the you-read-it-this-morning, now-read-it-again-online products that pervade the "online newspaper" industry.
How much of the $10 mill --if TS succeeds -- that Nisenholtz can hold onto will certainly be a question. The Times is reeling financially, as evidenced by recent newsroom cuts, and will need every new dollar of new media profit it can generate.
But the effort is there at least, and maybe it will spur others to innovate and look to ways to increase top-line content revenues. Stars for Nisenholtz for taking the lead.

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