NEW YORK (

TheStreet

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The New York Times

(NYT) - Get Report

is counting on its digital division to counter an expected 4% decline in year-over-year print revenue during the fourth quarter.

Today New York Times management provided investors with an outlook on its new Web site pay model during a presentation at the 38th annual UBS global media conference. During the fourth quarter, management said it is anticipating a 10% increase in its digital ad revenue.

The media company is shifting its NYTimes.com site to operate under a subscription based pay model in order to develop another consumer revenue stream.

In her presentation, president and CEO Janet Robinson explained that after the new subscription model goes into effect in early 2011, all visitors will be given free access to a set amount of content. Once users access the allotted amount of free content, they will "trigger a gate" and will not be able to view anymore content without paying for a subscription.

While the company is currently focusing on its digital transformation, Robinson said that it will not abandon its roots. "We will continue printing newspapers for many years to come," she said.

The company expects circulation revenues to fall between 4% and 5% in the fourth quarter, and forecasts that operating costs will drop about 2% to 3% on higher newsprint prices.

-- Written by Theresa McCabe in Boston.

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