The New York Times recently announced that it will pull the plug on its news summary application, NYT Now, as the app did not output the expected revenue.
According to the publisher, the innovations featured in the app are now part of Times' other digital platforms, which include the main app, NYTimes. The flagship app borrows a leaf from NYT Now in terms of feel, while also encompassing an easy-to-scan list of the day's headlines.
The NYT Now platform rolled out in 2014 with a main selling point: to deliver a curated collection of the day's "prime" news, but for less money than a regular subscription. NYT Now was also gunning for the younger mobile audience, which was unaccustomed to traditional paper newspapers.
While the lowest price for a digital subscription at NYT was about $15, the app came at a monthly $8 subscription. To put it in perspective, a full digital subscription asked users to shell out $35 per month.
In May 2015, the NYT axed the subscriptions and reverted to brand sponsorship as an alternative revenue stream. A company spokesperson noted at the time that the publisher registered much less subscribers than it anticipated.
"We need to spend sufficient time building the audience for a new product before full monetization," they added.
No official data on the exact number of subscribers reached the media, but a source from the publishing company said that the low-cost subscriptions proved "much less successful."
The main issues NYT Now faced were the competition and the demographic.
With a vast array of no-cost media source for news around the web, as well as rival news reading apps such as Apple News, SmartNews and Flipboard, it is increasingly difficult to incentivize the younger generation to purchase subscriptions. Keep in mind that most young readers grew up with the idea that news is available at any time, for absolutely no charge over the internet (read: social media).
NYT's own report shows that its app reached 334,000 unique users in May 2015. The number of unique registered users during the last quarter was about 257,000. The app was available on both Android and iOS, and it has reached about 900,000 downloads since its launch.
Users who got accustomed to NYT Now should know that the core features of the app have already been ported to the core mobile app. This includes the bullet-point lists, the evening and morning news briefings and the reader-friendly tone.
Starting the week of Aug. 29, NYT Now will no longer be available for download. The app will also stop receiving updates. Registered users should expect to get subscription invitations via email.
