The New York Times is creating a second revenue stream and preserving its online advertising business by offering paid subscriptions for its iPad application, effective next year.

The news of the paid subscription model comes with the recent update of the company?s iPad application, which now features more than 25 sections of content. The new application builds on the previous design of the Editors? Choice app, but now features videos and photos, breaking news alerts and enhanced section and article navigation.

?Our news and information are being featured in an increasingly broad range of end-user devices and services, and our pricing plans and policies must reflect this vision,? said Denise Warren, senior vice president and chief advertising officer of The New York Times Media Group and general manager at NYTimes.com, New York.

Paid subscription
The New York Times is not the only publication that will have a paid subscription model.

The Wall Street Journal offers a free and paid subscription model.

Users can read different sections in the WSJ application, but to access other ones, such as opinion, they must subscribe.

When the New York Times application transitions to a paid subscription model in 2011, users will be required to pay for full access.

The Times iPad application is currently free in Apple?s App Store.

?We will announce pricing and further information as we get closer to launch,? Ms. Warren said. ?We are building a new online infrastructure designed to provide consumers with a frictionless experience across the many platforms on which they access New York Times content.?

Mobile app
The Times application features 25 sections, including top news, most emailed, business and video.

Users can access other sections by logging into their existing NYTimes.com account or by completing a free registration within the application.

Articles feature embedded photos and videos, with the ability to play videos within the article or expand to full-screen view.

In addition, users can receive breaking news notifications even when the application is closed and share articles and videos via Facebook, Twitter and email.

?The NYTimes App for iPad is designed to take maximum advantage of the unique opportunities the device offers, expanding the reach of our journalism,? said Yasmin Namini, senior vice president of marketing and circulation at The New York Times Media Group, New York.

?As we designed this app, we were able to leverage feedback and user experience info to enhance design and functionality to create an optimal experience for enjoying Times news and multimedia on iPad,? she said.

Advertising opportunities
Fox Searchlight, Mercedes-Benz and MicroStrategy are the launch advertisers.

The companies are running ads and banner ads throughout the application.

Fox Searchlight?s banner ad is promoting its new film ?Conviction.?

When users tap on the ad, they are prompted to another page where they can view the trailer for the movie.

The Mercedes Benz banner ad is promoting its 2011 E-Class vehicle and when users click on the MicroStrategy ad they are sent to iTunes where they can download the application.

?We have seen great interest from advertisers; we have three advertisers at launch and we have sold out all shares on the iPad app for the rest of the year,? Ms. Warren said. ?We offer a number of ad positions on the iPad app, including interstitial ads, home page, section front and article half-page.

?Our ads use the latest technology, including: tilt to activate ad, swipe to activate ad, tap to activate ad and click to view slideshows and video, download iPad app, hear song and audio file, and more,? she said.

Final Take
Rimma Kats is editorial assistant on Mobile Marketer, New York