Nyt Paywall

In: Business and Management

Submitted By marleynyc
Words 2349
Pages 10
New York Times Paywall; The Future

New York Times is proof that being a lion for past generations doesn’t equate to being the King of the Jungle in a new generation. The struggles of the NYT are certainly not their own as the newspaper industry has hit hard times in the wired culture. As the article points out, there is very little that has occurred the last half century, from a journalist perspective, that can’t be traced back to the New York Times and its staff of accomplished writers and reporters. But how is it that a company with so much cachet and such a large customer base was not able to launch a successful and profitable campaign online?
Even though the NYT posted $2.4B in revenue in 2011, it had been teetering on breakeven Net Income/Loss. In some respects, at the time of the article, the NYT new online “paywall” subscription program was a success – the recently installed paywall had steadily increased the subscription base since inception, getting 390,000 paid subscribers in a 10 month period. Over the course of the last year and a half they had maintained anywhere from 30M to 35M unique visitors in web traffic. However, there was an introductory price of $.99 for four weeks of access for new subscribers, so there were concerns of those subscribers not renewing. To compound those concerns, in that same time period, the total page views dropped from 700M+ to 600M+.
It’s interesting to note that the NYT net income numbers have been stagnant since 2008, with the costs slightly less in 2011 than 2008 as a percentage of revenue (47% vs 48%). In addition, operating costs have decreased 25%, with revenues decreasing 21%. These figures are important in that the company was able to maintain revenue against cost during a change in the market conditions. Advertising/classified money was moving away from print to other Medias and overall advertising…...

Similar Documents

Interim Success of the Nyt Paywall

...It seems that the NYT has at least attempted to make some progresses in finding a more sustainable business model as opposed to remain status quo, in which falling advertising revenues and printing subscriptions are industry norms. A comparison of digital subscriptions between 227,000 from the 2007 TimeSelect trial and 390,000 from the current paywall (by February 2012) has suggested a sign of a more successful model at present. In addition, the paper announced 70% of traditional print subscription audiences have registered for the digital access over 10 months since the new paywall was implemented, and that, overall, indicates an enormous potential for the digital subscription growth in the future – a habitual change from print to digital copies among readers. Extra revenues can be generated from this habitual change not only from digital subscriptions alone, but also cost savings to deliver digital copies than print ones. A consistent growth of online advertising by 5% was also reported in Q4 2011 for the News Media Group, combining the current and potential growths mentioned above, we consider the NYT has found a strategy that is working for them at the present time. However, despite some bolstering figures above, the NYT’s low subscription ratio among online readers (i.e. less than 25% of its 1.1 million site users subscribed for digital contents) remains a concern whether it can attract new digital subscriptions over long term. Further, the NYT’s high subscription......

Words: 311 - Pages: 2

How Does the Implementation of Apps and E-Subscriptions Effect Newspaper Publishers Revenues and Their Strategies for Further Businesses?

...................................................................................... 6 Newspapers issue regarding digital era ..................................................................... 6 Critical Analysis .......................................................................................................... 7 Advertising revenues .......................................................................................... 8 Paywalls and Subscriptions ................................................................................ 8 Apps and other software ................................................................................... 11 4.3.1 4.3.2 4.3.3 5 6 Conclusion ...................................................................................................................... 12 Recommendation and Implementation ........................................................................... 14 6.1 Customer and Advertiser ......................................................................................... 14 Paywall: ............................................................................................................ 14 Suscriptions: ..................................................................................................... 14 Google’ One Pass: ............................................................................................ 14 Amazon’s Partnership: .........................................................................

Words: 4897 - Pages: 20

Ny Times

...format is quickly dying in favor of an online format. The print version was more profitable, but heavily declined as digital news outlet usage rose in popularity. In addition, advertising revenue is declining through the advent of the internet (allowing companies to advertise themselves on their own sites). Many internet users expect their news to be free which damages subscription based models such as those that the New York Times relies on to stay in business. The Paywall is a compromise to this expectation; a certain amount of articles would be free but the rest the users would be charged for. The NY Times hopes to recover enough profit through this measure while growing their brand. 2. I think the Paywall is not going to be sustainable for the NY Times. I believe in those who commented that the NY Times and similar newspaper outlets need to transition fully for the digital age or face even bigger losses. Revenue is still slowly falling and net income over the years seems to be very rocky. 3. I think the Paywall is a bad idea. Number of visitors seem to be slowly falling and the price compared over a year is ridiculous compared to the costs of subscribing to the Financial Times or Wall Street Journal. This is best said by blogger Michael DeGusta who remarked that the Times subscription cost more than the WSJ, Economist, and Daily combined. 4. I believe the Times should actively look to transition from print to digital media quickly before it is too late for the......

Words: 299 - Pages: 2

New York Times Paywall

...AMINA HALILOVIC RAZIC MKT505, Marketing for Managers, Spring 2014 HCS 2 – Assignment – The New York Times Paywall 04.05.2014. 1. Is the Paywall working? The Paywall is the new system introduced by The New York Times in September 2011 that prevents internet users from accessing news articles without a subscription. The paywall used by The Times is a „soft“ paywall which means that users are able to see some content (20 articles per month) and after they reach the limit, they must pay to access more content. The paywall proved to be a successful endeavor for The Times in the short run, because in only 2 months they managed to get 390 000 subscribers, which assured them a new source of revenue. In addition to these subscriptions, 70% of The Times subscribers to the print version registered for the online subscription as well. Long term success of the project was still in question due to many factors affecting the online subscriptions, such as availability of other sources of news, willingness of other big news providers to offer content for free and new emerging technologies that affect the way users read content online, like smartphones and tablets. In spite of that, the confidence of The Times publisher in their new payment system is evident in the fact that shortly after the success of this project they introduced the same system for another famous publication in their group: The Boston globe. Other news publications that tried this model have had positive, as well......

Words: 1033 - Pages: 5

Cases

...Staples’ catalog and Staples’ retail stores? 5) Do you agree with the high level of operational and organizational integration between Staples.com and Staples Inc.? What are the risks and/or disadvantages (if any) associated with the dotcom division being so closely allied with the parent? 6) Do you think that Jeanne Lewis will be successful in creating a vibrant “dotcom” culture at Staples.com? Why or why not? If you were Kelly Mahoney, would you take this job? How would you value the dotcom tracking stock? The New York Times Paywall 1) Is the Paywall working? 2) How would you evaluate the current Paywall compared with the two prior ones? Do you think it is appropriately designed compared with the Financial Times or the Wall Street Journal? 3) Why are newspapers in trouble? What is the goal of The Times in creating the Paywall? 4) How should The Times manage its transition from print to digital? 5) Evaluate the Paywall as a strategy for newspapers in general. Vans 1) What were some of the key characteristics of Vans’ earliest customers in the 1960s and 1970s? What was the public perception of skateboarding during this era? 2) What was Vans’ competitive advantage during its early days (1960s and 70s)? What was its value proposition to customers? 3) How has the company’s competitive position and value proposition changed over time? 4) In recent years, Vans has expanded in a number of directions. For example, the company......

Words: 2005 - Pages: 9

Nyt Paywall Case

...for the newspaper industry. On one hand, it required redesigning a new product suited for online customers and on the other it was an opportunity to reach to 123 million potential customers in this category. Thus to keep up with the pace of emerging digitization in every field, like all newspapers, New York Times also added online reading in their product portfolio. However it only worsened the crisis the newspaper was already going through. The operating profit declined by more than 76% from 234Mn$ in 2010 to a mere 57Mn$ in 2011. The circulations were steadily declining and the new online advertising could not compensate for print advertising rates due to their lower rates. Thus to boost their revenues, New York Times initiated the “Paywall” system: paid subscription for online reading beyond a limit. This also did not help much as after the initial spurt in the number of subscriptions, the rate of subscription increase had slowed down. The challenge before New York Times was to maintain profitability while adding the online product offering in its portfolio. Alternatives : (a) Focused Journalism to capture niche market: Work on developing specialized content like Wall Street Journal to target niche market. Pros: (i) Such content if good will engage the readers and they will willingly pay for such content if required. Cons: (i) With...

Words: 618 - Pages: 3

Nyt Paywall

...consumers. Exhibit 4 indicates a decline in Print subscription for NYT and Exhibit 8 demonstrates steady rise in web traffic for online newspapers. Technology is making the cost of publishing less expensive which enables the creation of many new “brands” that target very small segments effectively. The technology i.e. ipad, paywall, distribution etc. is undergoing evolution and is heading towards completely changing the platform how news is rendered to subscribers and their experience and is changing revenue sources from subscription and advertising but ,at the same time, is also presenting challenges and opportunities for cost savings and exploring new avenues for advertising and revenues. Journalists used to make a name for themselves at institutions like the New York Times. However, in the digital age, they can do this independently in certain segments of the news. The newspaper industry follows a basic industry life cycle pattern. The classical life cycle starts with the introduction followed by growth, maturity till saturation/decline. The news on paper is definitely already in the decline phase and will head to diminish within the next 20 years. So, in summary, technology has changed the economics of the industry which will result in many marginal enterprises being eliminated and a consolidation of the big players which will offer a variety of technological solutions, for the future and past. 2. Is the paywall working? Lay out some factors that suggest that it......

Words: 1943 - Pages: 8

Social Media Tips

...nonprofit ProPublica – and their monopoly on services, such as classified advertising. Emerging in its place is a nascent digital duopoly: Facebook and Google. 2) Is the paywall working? Lay out some factors that suggest that it does and some that suggest that it is not and then make your recommendation. Where do you think the digital edition is in its lifecycle? Yes. It’s working. To update the case study’s figures, the paper has gone from zero to 910,000 paid digital subscribers in a little more than 2 ½ years. Last year’s growth was a 20 percent increase from the previous year, and the company was on track to exceed 1 million digital subscribers this year. The paywall is now a significant part of the Times’ business model, representing one-tenth of all sales. That amounts to an eye-popping $149.1 million in revenue in 2014. Here’s the sobering aspect. The digital edition is in the growth phase of its lifecycle but likely is nearing maturity. Before the Times put up the paywall, it hired McKinsey & Co. to determine how big the market was for digital-only subscriptions. The consulting firm concluded nearly 1 million subscribers would pay $15 to $30 a month for online access. The Times hit the low part of that threshold last year, and most of its newest digital customers are buying a cheaper version, called NYT Now, that costs $8 per month. This means that McKinsey’s estimate is likely a little low but not by much. Times executives have said they believe they will......

Words: 719 - Pages: 3

Articulo (Juan Vila Y Elliot)

...The New York Times Paywall: Executive Summary This report examines the rise of digital journalism and the willingness of online readers to follow this trend. The study provides an analysis and evaluation of the current and prospective profitability and financial stability of the newspaper industry and more specifically of “The New York Times.” Companies in this industry have been selling printed newspapers since the XVIII century. While newspapers continue to print and circulate news, the industry has changed as revenues in advertisement—the main source of revenue for the times—and news circulation have declined due to the digital era. Well-known newspapers are failing to monetize on the new opportunity to become the best digital newspapers. A clear example of why they are losing advertising revenues are companies like monsters.com who started to supply job offers online—removing the jobs portion away—and GM who made their own website to take automotive advertising away. Analytical Problems: To keep pace with the digital trend and analyze the best ways to monetize online, the New York Times has developed a paywall, were subscribers pay a monthly fee for the opportunity to get access to all the information provided by the New York Times. Paid digital subscribers in the year 2011, after launching paywall, increased by 390% in less than a year. Also, online newspaper traffic from 2004 to 2009 increased by 75%. The New York Times is making the transition from physical to......

Words: 816 - Pages: 4

Paywall and New York Times

...Is The Paywall A Good Long-Term Strategy For The NY Times? Name Institution Is The Paywall A Good Long-Term Strategy For The NY Times? Every Organization must have plans for gaining a competitive edge. It is this competitive advantage that enables an organization to stay ahead of the competition. According to (Jeffs, 2008), a strategy is simply a plan that is used by an organization to achieve its objectives; it’s a road map or a guide towards the desired destination. A strategy can either focus on long term goals or short term goals. This action is dependent on the planning time frame established by the organization (Chaffey, 2009). My primary objective of this paper is to analyze New York Times and determine if the Paywall is the most appropriate strategy for the New York Times. The Paywall isn't a good long –term strategy for the New York Times; my proposition arises from the fact that readers will find it hard to pay or to subscribe annually to get additional news from the website. The implication of this act is that readers may only read the free news from the open web page and source for other news from other newspapers. These actions might cause substantial losses due to a decline in the number of readers who would like to pay to say for a year, to get access t the news in the restricted webpage of the New York Times. It would be better if the Paywall came with short-term subscriptions, like weekly subscriptions. The Paywall as a long-term strategy for the New...

Words: 625 - Pages: 3

Marketing Analy

...The New York Times Paywall Every newspaper in the country is paying close, close attention [to the Times paywall], wondering if they can get readers of online news to pay. Is that the future, or a desperate attempt to recreate the past?. . . Will paywalls work for newspapers? — Tom Ashbrook, host of On Point, National Public Radio1 On March 28, 2011, The New York Times (The Times) website became a restricted site. The home page and section front pages were unrestricted, but users who exceeded the allotted “free quota” of 20 articles for a month were directed to a web page where they could purchase a digital subscription. The paywall was launched earlier on March 17, 2011, in Canada, which served as the testing ground to detect and resolve possible problems before the global launch. The Times website had been mostly free for its entire existence, except for a few months in 2006–2007 when TimesSelect was launched. Traditional newspapers had been struggling to maintain profitability in the online medium, and they were eager to see how the public would react to the creation of a paywall at the most popular news website in the U.S. Martin Nisenholtz, the senior vice president of Digital Operations at The Times, was optimistic about the willingness of users to pay: I think the majority of people are honest and care about great journalism and The New York Times. When you look at the research that we’ve done, tons of people actually say, “Jeez, we’ve felt sort of......

Words: 6923 - Pages: 28

Nyt Analysis

...                                      Analysis of The New York Times Company I. Strategic Profile and Case Analysis Purpose The New York Times Company case describes the company as a leading media company, whose core mission is to provide quality news, information and entertainment.  However, recession, new technology trends and strategic leaders play a crucial role in the development of the company. As a result, in September 2008 total company revenue declined by 8% and advertising revenues decreased 13 %. This case examined the current condition of the company and the challenges that it faces. Since its founding in 1851, The New York Times has been successful. When the Ochs-Sulzberger family bought it in 1896, it started to grow internationally. Until today, the family still maintains control of the company due to its dual stock structure. Nevertheless, investors are not satisfied with this situation because they are not able to use their full voting rights for some of the big decisions in the company. In addition, the company managed to put in place the right leadership, however, some leaders created certain difficulties. For example, when the company needed the most its Senior Vice President, Vivian Schiller, she announced that she was leaving her post for a better position in another firm. II. Situation Analysis A.   General Environmental Analysis 1.     The Economic Segment. The New York Times is the most valuable asset of the New York Times Company, which...

Words: 869 - Pages: 4

The New York Times Paywall

...The New York Times Paywall Every newspaper in the country is paying close, close attention [to the Times paywall], wondering if they can get readers of online news to pay. Is that the future, or a desperate attempt to recreate the past?. . . Will paywalls work for newspapers? — Tom Ashbrook, host of On Point, National Public Radio1 On March 28, 2011, The New York Times (The Times) website became a restricted site. The home page and section front pages were unrestricted, but users who exceeded the allotted “free quota” of 20 articles for a month were directed to a web page where they could purchase a digital subscription. The paywall was launched earlier on March 17, 2011, in Canada, which served as the testing ground to detect and resolve possible problems before the global launch. The Times website had been mostly free for its entire existence, except for a few months in 2006–2007 when TimesSelect was launched. Traditional newspapers had been struggling to maintain profitability in the online medium, and they were eager to see how the public would react to the creation of a paywall at the most popular news website in the U.S. Martin Nisenholtz, the senior vice president of Digital Operations at The Times, was optimistic about the willingness of users to pay: I think the majority of people are honest and care about great journalism and The New York Times. When you look at the research that we’ve done, tons of people actually say, “Jeez, we’ve felt sort of guilty getting...

Words: 337 - Pages: 2

Mangement

...Managerial Comm 3068 Class/Assignments Calendar____________ L. Lopez 2016 (amendments always possible) *This is an organic class calendar, meaning (a) amendments are possible, and (b) at the end of the term, you will send a copy back to me with some additions.** Listen carefully for instructions our first week of class and look for >>> to know where to add additional resources from the NYT or PBS Newshour. **The reason for asking you to find/add more articles some weeks is for you to see how much there is to inform you ahead, past graduation, when you need to continue to keep learning going yourself. By then, you should bring new perspectives to the articles and changing ideas/ways of doing nearly everything. ***When NYT responses are due on a day when a case analysis is due, send ONE email with both NYT responses and case analysis included with abbreviated case name in the subject line (e.g., Google 2:30). If you are emailing with a question or about an absence, put QUESTION or ABSENCE in the subject line. Always put the start time of your section in the subject line and always send using your Baruch email account to Linda.Lopez@baruch.cuny.edu (NOT baruchmail). When responding to case questions (cases and questions found at the end of textbook chapters), recall these are analyses, not responses of one or two lines. ****Attendance is required for all panel presentations as well as for any class featuring a guest speaker. If......

Words: 1409 - Pages: 6

Nyt Article

...Reprints This copy is for your personal, noncommercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers here or use the "Reprints" tool that appears next to any article. Visit www.nytreprints.com for samples and additional information. Order a reprint of this article now. August 7, 2011 Stocks Suffer Sharpest Drop Since 2008 By GRAHAM BOWLEY The stock market resumed its free fall Monday on mounting fears about the stalling economy and worries that the government had few options to increase growth, dual concerns that overshadowed the downgrade of long-term United States government debt. The Dow Jones industrial average fell 634 points, or 5.6 percent, and the Standard & Poor’s 500- stock index dropped 6.7 percent, the biggest retreats since December 2008 in the midst of the financial crisis, accelerating a sell-off that began a couple of weeks ago. The S.& P. 500 is now down 18 percent from its April 29 peak and is nearing official bear market territory, defined as a fall of 20 percent. The selloff continued Tuesday morning in Asia. The Nikkei 225 in Tokyo was down 4.1 percent at midmorning, while the Kospi in Seoul lost 5.7 percent. Shares in Australia sank 4.8 percent, and early indicators suggested that other markets would follow suit. S.& P. futures fell 2 percent, signaling a lower open for markets in New York. So anxious are many investors that they poured money into Treasury securities, the debt the......

Words: 1345 - Pages: 6