New York Times Shutters NYT Now App
August 18 2016 - 12:10PM
Dow Jones News
New York Times Co. is shutting down NYT Now more than two years
after the newspaper launched the mobile app in the hopes it would
lure new digital readers with a lower-priced offering.
The app, an effort to give readers a more curated selection of
Times stories in a sleeker mobile format, debuted with a
subscription price of $8 per month, but failed to gain traction.
Only about 20,000 people agreed to pay that price for the product,
much lower than the company's goal of 200,000, the Journal
reported.
Last year, the Times made NYT Now free in a play to find and
convert younger consumers into loyal Times readers.
Like many newsrooms, the Times embarked on a project to create
its own mobile properties, such as NYT Opinion (which closed in
2014) and NYT Cooking, to drive digital growth in the face of print
declines. With readers gravitating more toward social media
services like Facebook, news outlets have struggled to generate
readership on their own mobile apps.
In a memo to staff, Kinsey Wilson, executive vice president for
product and technology, and David Perpich, senior vice president
for product, said that NYT Now "attracted a loyal following," but
that the company could now "focus our energy and resources on
innovation in our main New York Times products… and on targeting
younger readers where they often are: on social platforms."
Messrs. Wilson and Perpich added that the company "did not need
a separate lower-priced or limited free offering in the marketplace
to drive growth," and that NYT Now helped spur the company to be
more conversational and compelling on readers' mobile devices.
NYT Now's closure comes as the Times pins its future on boosting
digital revenue, particularly through its branded content division.
Last year, the company said it intends to double its digital
revenue to $800 million by 2020. In the second quarter, digital
advertising fell 6.8%, with weaker display advertising numbers
offsetting growth in its sponsored content unit.
Write to Steven Perlberg at steven.perlberg@wsj.com
(END) Dow Jones Newswires
August 18, 2016 11:55 ET (15:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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