The NYT seems to be having some success with its paywall. Unlike the
WSJ and the FT, the NYT deliberately designed its paywall to be
extremely porous, so it is not that difficult to get around it.

Its success should be yet another illustration that people are not
greedy, freeloading bargain-hunters. It is also interesting that it is
the WSJ and FT - papers focused on financial markets - that take the
most cynical view and go to extreme lengths to prevent unauthorized
access of their websites. Financial markets make everyone associated
with them into cynical sociopaths!

http://blogs.reuters.com/felix-salmon/2011/08/12/how-the-nyt-paywall-is-working/
---------------------------------snip
Yes, the NYT paywall is porous — but that’s a feature, not a bug. It
allows anybody, anywhere, to read any NYT article they like. That
makes the NYT open and inviting — and means that I continue to be very
happy to link to NYT stories. (If you follow a link to the NYT from
this or any other blog, you’ll never hit the paywall.)

I’m in England right now, home to both of the sights above: the polite
request to “please keep off the grass”, accompanied by tiny iron
hoops; and the forbidding walls surrounding the gardens of Buckingham
Palace. The former encapsulates everything which people like about
England; the latter is the dark and regrettable side of things.

Now imagine that both of the gardens above were open to anybody paying
an annual membership fee. The gardens on the left would have many more
freeloaders — people who just saunter onto the grass and enjoy the
sunshine without paying. The ones on the right would be much more
effective in keeping such people out.

But here’s the thing about freeloaders: if they value what they’re
getting, a lot of them will end up paying anyway. What happened when
the Indianapolis Museum of Art moved to a free-admission policy? Its
paid membership increased by 3%. When the Minneapolis Institute of
Arts did the same thing, paid membership increased by 33%.

Sales people and business-side executes tend to believe as a matter of
faith that if people can get something for free, they won’t pay for
it. But all they need to do is look at their own behavior to see how
that isn’t true: when they go to a restaurant in a distant town that
they’ll never visit again, they still leave a 20% tip. A large segment
of the population feels that it’s only proper to pay for something if
you’re getting value from it — and if you invite as many people as
possible onto your lawn, that’s a great way of maximizing the number
of people who get value from it. Especially in a world where your own
enjoyment of it doesn’t impinge on anybody else’s.

The fact is that no one subscribes to the WSJ or the FT because of
their exclusivity. As a result, the smart thing for both papers to do
is to maximize their paying readership by maximizing their overall
readership. Instead, both have taken a scared and defensive approach
to digital subscriptions, fearing that if their readers can get their
content for free, then they won’t pay.

Wonderfully, the NYT seems to have disproved that idea. It’s no
philanthropy: it’s a publicly-listed for-profit corporation, run for
the financial benefit of its shareholders. But its paywall marks a new
model and very promising in getting consumers to pay for content. It’s
not a completely free pay-as-you-wish approach: the NYT nudges people
quite hard to pay quite a lot of money. But I’d wager that the
majority of people buying digital-only subscriptions to the NYT are
doing so only after bypassing the paywall at least once or twice. If
you hit the paywall on a regular basis and barge past it, eventually
you start feeling a bit guilty and pay up. By contrast, if you hit the
FT or WSJ paywall and can’t get past it, you simply go away and feel
disappointed in your experience.
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