Metering or a metered pay system is a business model that allows readers to access a certain amount of content for free and then request payment for more. Different models can be implemented once the user threshold has been crossed; a flat fee model or a pay-as-you-go model are two of the more common licensing models used.
A metered business model is unlike a strict pay wall in that it does not alienate the casual reader who can still visit a site for free every once in a while. This user may not realize that a paywall exists because they will never cross the threshold that initiates a request for payment. This approach is extremely attractive for owners of content that is readily accessible and available for free from other sources, such as news sites.
Because casual readers—who make up the majority of a site's traffic—are not alienated, the metered business model helps to maintain ad revenue. Publishers adopting strict pay walls risk significantly depressed advertising revenue (resulting from a drop in page views) in exchange for considerably less revenue from paid access; the metered model, on the other hand, allows content to be monetized through advertising while monetizing the most loyal users directly.
A successful implementation of a metered pay system is the Financial Times. In 2007, FT.com adopted a model that allows users one free article view per month before the user is asked to register, followed by nine additional article views per month before the user reaches a pay wall. The FT offers both standard and premium subscription options; as of earlier this year they have a total of 121,000 subscribers paying $19-$38 per month. The FT uses RightSuite to enforce the metered pay system and sell paid access.
The Financial Times's success with a metered pay system likely influenced The New York Times's decision to adopt a metered pay model in 2011. Details of how The Times's model will work have yet to be announced.