New York Times Will Charge
Nonsubscribers for Access
Beginning by the end of this month, the New York Times will charge nonsubscribers less than $20 a month for full access to its Web content. The yet-to-be-announced price will strategically fall below the paper’s $19.99 a month subscription rate on Amazon’s Kindle. Users will be able to read a certain number of articles free each month; to read more, the reader must pay a flat fee for unlimited access. The paywall will provide the paper with a needed revenue stream in the face of dropping ad sales; however, yet to be determined is whether this fee will chase away readers. Signs seem to point to no, as the pay structure should have little effect on light readers, and loyal readers will most likely hand over the money to ensure uninterrupted access.
The New York Times is not the first paper to initiate a paywall, nor will it be the last. Which media outlets do you think will be next?
Can Apple Survive Without Jobs?
It was a week of highs and lows for Apple. On Monday, the company’s CEO Steve Jobs announced his third medical leave of absence. The following day, Apple announced it sold 7.33 million iPads during the first quarter of its 2011 fiscal year, bringing total sales to nearly 15 million. This is an impressive feat considering the tablet category did not yet exist a year ago. However, Apple’s string of hits, including the iTouch, iPhone and MacBook Air, are a reminder of the important role Apple's CEO plays in the company’s innovation process. In the near term, Jobs’ absence should not hinder Apple’s success. However, with the rapid pace of new product introductions, it is imperative the company keep its innovation process moving ahead at full speed.
Despite “Golden Voice,” Kraft Ad Is Flat
The much-anticipated Kraft Macaroni & Cheese commercial featuring Ted Williams – the homeless man with the golden voice – debuted this week. Unfortunately, amidst all the hype and fanfare the TV ad fell flat. Yes, Williams’ voice added some punch to what would otherwise have been a traditional mac ‘n cheese ad. And, yes, the commercial has become a viral sensation, garnering more than 700,000 views and snagging the No. 6 spot on the Viral Video Chart. But despite a captive audience, the ad did nothing to position Kraft as a forward-thinking brand. Rather, the spot, created by Crispin Porter & Bogusky, reinforces age-old stereotypes of wives cooking in the kitchen and insensitive husbands coming home with last-minute dinner guests. We learn from the ad that Kraft’s Homestyle Macaroni & Cheese is a quick dinner solution, but the brand clearly missed an opportunity to tell us something more.
Marcom this week: From A to zinc is compiled by the Vitamin IMC editorial team. They can be reached at vitaminimc@gmail.com. Miss your vitamins last week? Visit January 14's “Marcom This Week.”
