2. Agenda
• Company Background
• Key Issues
• Industry and Competition
• Earlier Paywall Attempts
• Early Results
• SWOT and PEST analyses
• Options and Suggestions
• Pros and Cons
• Future of Newspapers
• Fast-forward to 2017: NYTimes
now
• Lessons Learned

3. The New York Times newspaper was founded
The New York Times, the International Herald Tribune, The Boston Globe and About.com
www.nytimes.com
revenues in 2011
operating profit in 2011
daily newspaper in the U.S. by circulation
sold Regional Media Group in 2012
1851
Include
$2.3 billion
$57 million
TOP 3
$143 million
1996

5. March 17, 2011 launched in
2 weeks later
March 28, 2011 launched in
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6. March 17, 2011 launched in
2 weeks later
March 28, 2011 launched in

7. Key issues of the case
How the
public
will
react?

9. - 50%

13. 32 MM Unique Visitors
CPM Social U$ 0,56 X News U$ 6,99
“…visitors who are exposed to display ads
on news sites are more likely than average
to visit the advertiser website, are heavier
online buyers and tend to have higher
household income.”
Jeff Hackett, comScore senior vice
president

15. Attempt 1 (1996)
Website Launch
$35 per month overseas
Attempt 2 (2005)
TimesSelect
$45.95 per year

16. 4 options came to the fore
 All or Nothing
 Exclusive Content
 Metered System
 Device- Specific offer

17. NYTimes.com + Smartphones $3.75
NYTimes.com + Tablet $5.00
All digital access $8.75
7 days $15.40
Friday-Sunday $10.80
Sunday $7.80
Monday-Friday $7.70
Digital Editions Print Home Delivery
Subscriptions PriceSubscriptions Price

18. • +390,000 paid digital subscribers
• 70% of the print subscribers registered for digital access for free
• The digital ad revenue by 5.3% but the print one by 7.8%
• Digital ad revenue = 28% of total ad revenue
Early Results

20. Pest analysis
• No governmental regulations
• Freedom of expression
• No licensing requirements
• Revenues and subscriptions had
steadily declined
• The audience is not willing to
pay for online subscriptions
• The model of mass communication
had changed
• The internet is substituting the prints
• Various blogs, social media, web sites
• people’s perception of news
has dramatically changed
• prefer to simply browse
through the internet
Political
TechnologicalSociocultural
Economical

21. Five Forces Analysis
Bargaining Power of
Suppliers
Very Low
Bargaining Power of
Consumers
High
Threat of New Entrants
• printed newspaper – Low
• online newspaper - High
Threat of Substitutes
High
Threat of Substitutes
High

22. B. Paywall
C. Pay as you go D. Sell the company and go
to Bahamas
A. Ad based model with
free content
What should New
York Times do?

23. B. Paywall
C. Pay as you go D. Sell the company and go
to Bahamas
A. Ad based model with
free content
What should New
York Times do?

24. Paywall with a different approach

25. Supporting Facts
Iris Chyi (2012) School of Journalism at the University of Texas
Americans are willing to pay
Micropayments are a great success in Germany and Netherland
But North America?

27. Pros
Legitimize the Content
Generates Revenues
Cons
Competition
Easy to get around

28. The Future of Newspapers
Paywall
Some
experts
considered
it a success
Temporary
measure
for
declining
industry

29. The Future of Newspapers
Paywall
Is it
working?
Will
subscriber
s grow?
Digital will
cannibalize
print?
Will it
sustain in
the future?

30. Paywall
$3,75 / week
$6,25 / week
$8,75 / week
in 2017

31. in 2017
Vital moment in the life of
The New York Times:
A need for change

32. New York Times in 2017
Report Staff Way of Working
Vision for the Future:
What needs to be changed

33. • You cannot stick to the old ways of doing
business in the fast pace digital era
• Do not be afraid of radical changes
• Diversify your business
• People are still willing to pay for quality
Key Learnings