NYT dumps paid model for mobile app, offers brand sponsorships instead

The New York Times has announced that it is scrapping the paid subscription model for its mobile app NYT Now, after it failed to convert a substantial number of mobile users to subscribers.

The app, which was previously priced at 7.99 dollars per month, was introduced last year as part of a larger effort at the Times to grow its subscription base by introducing new mobile products, reported TechCrunch.

The NYT Now app was particularly aimed at attracting a younger, more digital crowd, by offering news summaries that allowed users to quickly catch up on the top NYT stories while on the go, as well as read stories around the web.

However, one of the reasons behind the failure of the paid model was that in an era where news can be read free of cost on social media sites, the app was asking users to pay. A company memo said that the app although struck a chord with younger users but its effort to define a market at lower-priced subscription price point were "much less successful.