The Times Co. also is taking a minority stake in Austin,
Tex.-based NewsStand, the companies said.
The new online version of the Times — replicating the day's
paper, complete with the photos, graphics and ads — will sell for
about the same price as its print counterpart, even though the
newspaper's existing Web site offers most of its editorial content
for free.
But executives say the new offering will appeal to a range of
underserved readers, including people living in areas where the
printed edition is not available and those who want to read the
paper on their computers but want a more complete product than is
already available online.
"We think this has very substantial potential for the New York
Times. It allows us to reach potential consumers where we can't
reach them now with the newspaper," said Scott Heekin-Canedy,
senior vice president for circulation.
The Times will test out the new product this spring, offering it
through one of its own Web sites. It will be available in the fall
to both single-copy buyers and subscribers when NewsStand plans to
open a virtual newspaper and magazine shop offering numerous
publications.
A single copy of the newspaper on the newsstand costs 75 cents
within the New York City area; $1 elsewhere.
The companies, which signed a five-year agreement, would not
disclose the financial terms of their deal or the size of the
Times' stake in the privately held NewsStand.
The launch of the new product will not effect the content
offered on its existing site and the company does not plan to
charge for access to that site, Heekin-Canedy said.
Instead, the NewsStand version of the Times will expand the
reach of the print edition, in much the same way as a new printing
plant and distribution network would, giving consumers the news in
the format they're comfortable with, executives said.
"It looks and reads just like the traditional newspaper," said
Tracey Jones, founder and president of NewsStand. "Consumers have
been trained for the last 150 years in how to read the newspaper."
Unlike the newspaper's Web site, readers of the NewsStand
version will be able to download the paper in its entirety and read
it at any time, an advantage that may appeal to business travelers,
the companies said. The Times believes the product may also be
embraced by its mail subscribers, who now wait for up to two days
to receive the printed version of the paper.
Heekin-Canedy would not comment on the paper's sales projections
for the new product.
