New York Times increases Kindle subscription fee to $20 per month. Shouldn’t the rate be going down ?

by Jeff Wiener on April 7, 2010

As a sign of the times, the New York Times is increasing the fee for New York Times Kindle subscribers effective April 2nd to $20 / month, a significant increase from the previous $14 monthly fee. A strange move considering the proliferation of on-line free newspapers, editorials, and blogs which have already taken a significant chunk out of both the paid on-line and print media business. I can understand increasing the fee for print media delivery. It costs postage or labour to deliver, newsprint, labour fees associated with running the printing press, but, the on-line version delivery fee is the same regardless of the number of subscribers.

Lowering the fee would obviously increase the number of subscribers, and in turn, allow the New York Times the flexibility of raising advertising rates. The NYT’s philosophy in raising rates seems contrary to the direction they should be moving. Shouldn’t they be lowering rates to entice more on-line subscribers ?

The press release is as follows:


Hello from Amazon.com,

As a Kindle subscriber to New York Times, you might like to know that effective April 2, 2010, the New York Times has raised its price to $19.99/month for new subscribers.

As an existing subscriber to New York Times, you will continue to be billed at the previous rate of $13.99/month for six more months (until October 2nd, 2010) after which you will be billed at the monthly rate then in effect. We believe that the Kindle edition of New York Times continues to provide excellent value for customers with a free 14 day trial period, wireless delivery via Whispernet, no long-term commitments, and substantial savings vs. regular print subscription rates.

As always you are free to cancel your subscription at any time. If you are still in the 14 day free trial period of your subscription you will not be charged, otherwise you will receive a prorated refund for the unused portion of your subscription. To change or cancel a subscription, please visit www.amazon.com/manageyourkindle.

Sincerely, The Amazon Kindle team

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Written by: Jeff Wiener. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Identi.ca, or Friendfeed

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