Business Models

by Mike Masnick


Filed Under:
expense, journalism, paywall

Companies:
ny times



Good Question: How The Hell Did The NYT Spend $40 Million On That Paywall?

from the please-help-explain dept

We've already expressed our bewilderment at the NY Times' new paywall and the fact that it cost the company $40 million and took 14 months to build. Some are now reasonably asking what about the paywall could have possibly cost $40 million?
The New York Times already had a credit card processing system for selling home delivery. It already had a database management system for keeping track of Web site registrants. What did they spend the $40-50 million on? A monster database server to keep track of which readers downloaded how many articles? They should already have been tracking some of that for ad targeting. In any case, a rack of database servers shouldn’t cost $40 million.
I'm guessing that some of it involved user testing. The NY Times keeps trying to claim that it was its own users who told them this was the paywall they "wanted." But, still, between a ton of research, a bunch of programmers, some equipment... I'm having trouble figuring out how $40 million could have been wasted on this. Any help?

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  1. identicon
    Anonymous Coward, 28 Mar 2011 @ 11:35am

    Re:

    you mean licensed them right?

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