Should the NY Times go forward with its paywall? We think they should and here's our in-depth analysis. We analyze several companies in the field and the particular situation of the NY Times.
3. Agenda
• Industry Background
• Newspapers
• Media in general
• Scenarios
• Pros and cons
• Stakeholder perspectives
• Recommendations
• What Happened?
• Q&A
12. Possible Scenarios
• Scenario 1
• Keep the Paper and Remain Free for the Web
• Scenario 2
• Keep the Paper and Charge for the Web
• Scenario 3
• Ditch the Paper and Charge for the Web
13. How can The NY Times
Respond?
1.
Declining readership
2.
Exponentially increased competition
3.
Low-tech employees and contributors
4.
Problems across the board: in
news, travel guides, classifieds, sports
and editorials
5.
Loss of investor confidence
6.
Increasing paper and production costs
7.
Less and less advertisers
14. Scenario 1 – Do Nothing
Keep the Paper and Remain Free for the
Web
PROS
• Attract as many
readers as possible
• Waiting for a better
business model
• Retain existing paper
readers
• Keep
competitiveness to
other free news
channels
CONS
• High cost – bottom
line impact
• Lose first mover
advantage
• Decreasing financials
15. Scenario 2 - The Middle Way
Keep the Paper and Charge for the Web
PROS
• Accommodate new
way of reading
• Improve the
financials
• Expand to global
business
• Retain existing
consumers
CONS
• Pay for the web:
Challenge to change
consumer behavior
• Cannibalization of
readers and
advertisers
• Lose strategy and
resource focus
17. Scenario 3 – All Digital
Ditch the Paper and Charge for the Web
PROS
• More people rely on
digital news sources
• Better advertising
data
• Wider potential
audience
• Better for the
environment
CONS
• Loss of paper only
readers
• Loss of public notice
advertisement
revenue
• Greater competition
in the digital arena
23. Conclusions
• We’re in the listening era for
newspapers. They need to listen to
customers, technologists and analysts
to adjust their business models
• Industry-wide efforts to change the most
likely scenario are required
• NY Times’ communication abilities are
critical to secure investor
goodwill, persuade competitors and
allies and engage customers
25. References
• The U.S. Newspaper Industry in Transition
• Suzanne M. Kirchhoff
• Analyst in Industrial Organization and Business
• September 2010
• State of the Media 2010
• U.S. Audiences and Devices
• The Nielsen Company
• Exploiting the old while exploring the new: A
workshop on improving newspaper
performance
• John F. Greenman
• Alabama Press Association
• July 2008