The New York Times Paywall Subscription

On March 17, The New York Times announced their new system involving digital subscriptions. In the letter to readers, it states the transition is "...an important step that we hope you will see as an investment in The Times, one that will strengthen our ability to provide high-quality journalism to readers around the world and on any platform."  You can read the entire official announcement here.

The company announced that starting March 28, digital subscriptions would start being offered in the United States.  The plan consists of viewing 20 articles per month for free but if you view more than 20 articles you will be asked to become a subscriber.  Phone apps fall under this category asp well.  There is currently a special happening with all variations of the subscriptions, where each costs 99 cents per plan for the first four weeks.
The digital subscriptions consist of the following:

• NYTimes.com + Smartphone App = Access from any computer or device plus an app for Blackberry, iPhone or Android smartphones. 
•  Cost: $3.75 per week, billed every 4 weeks ($15.00)
• NYTimes.com + Tablet App = Access from any computer or device plus an app for iPod.  Plus Times Reader 2.0 and NYTimes App for Chrome Web Store.
• Cost: $5.00 per week, billed every 4 weeks ($20.00)
• All Digital Access = Access from any computer or device, plus Smartphone App and Tablet App.  This is also free for all print subscribers and home delivery subscribers.  
• Cost: $8.75 per week, billed every 4 weeks ($35.00)

This model took 14 months and 40 million dollars to develop.  All other questions are answer in their  FAQ section about the subscriptions.

Will this new payment system work?  Will other companies follow suit?  In my opinion, I do think there needs to be a business model developed for journalism online.  Television and radio forms of journalism have business methods and I do not think online journalism should be different.  Is this the right model?  Is this the right model?  Should other sites implement similar models?  This is to be determined.  In the upcoming months we will have to gauge the success of the new subscription, and see whether it is detrimental to The New York Times's business or beneficial.

Below is a video from Newsy Videos debating if this new plan will work or not.

Do you think The New York Times paywall will be effective?  Will they lose business?  Or will they be successful and set the business model?