...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 York...
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...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...
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...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,...
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...1. What are the changes that the newspaper industry is going through? Where do you think the “technology” of news on paper is in its lifecycle? Where is it likely headed? The newspaper industry is undergoing a radical change in three primary areas caused by technology. First, the underlying two-sided business model is changing. With the Advent of internet, news content is easily and freely available from various sources but lacks quality journalism and credibility. Revenues from online advertising are not large enough to compensate for decline in revenues from print advertising & subscription. Newspaper industry is experiencing new realm of new content delivery and in process of understanding and establishing sustainable sources and revenue model. The change from print media to digital media has provided a big challenge for the newspaper industry. Their main revenue streams have always been based on advertising. Online advertising brings much lesser revenues than print advertisements and a big gap appears. The internet causes on the one side the move from consumers to online consumption and on the other side a lot of retailers are using their own website as an advertising tool or are using free websites to reach their target groups. The technology itself is going through rapid changes as is in early stage of adoption by news agencies and consumers. Exhibit 4 indicates a decline in Print subscription for NYT and Exhibit 8 demonstrates steady rise in web traffic for online...
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...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 company. They should be the pioneers leading in the new age of news instead of the ones seeming stuck...
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...1) What are the changes that the newspaper industry is going through? Where do you think the “technology” of news on paper is in its lifecycle? Where is it likely headed? The newspaper industry is experiencing the declining stage of the product life-cycle, careening toward extinction. The case describes the fundamental changes as follows. Print advertising revenues are falling fast while digital revenue is growing, but not enough to cover print ad losses. Total newspaper advertising revenue in 2013 was down 49 percent from 2003, according to the Pew Research Center. Meanwhile, digital advertising is not picking up the load. This 2011 New York Times story by Nate Silver illustrates the problem: "How much are those page views worth? The Huffington Post had revenues of about $30 million last year, they’ve reported, almost all of which was from display advertising. This revenue was generated on roughly 4.8 billion page views over the course of 2010, according to Quantcast data. That means the average page view was worth a little more than six-tenths of a cent, or that 1,000 page views were worth about $6.25." What the case does not do, however, is explain the structural changes driving these trends. What we’re witnessing is the break-up of a monopoly. Thanks to the Internet, newspapers have lost both their monopoly on the news -- from infotainment sources, such as TMZ, and “serious” ones, such as the nonprofit ProPublica – and their monopoly on services, such as classified advertising...
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...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 digital...
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...Problem Statement: The advent of internet brought about both challenges and opportunities 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...
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...In May of 2012 the company hired a new president and publisher, Larry Kramer, founder of MarketWatch. In 2012 they did a major change of its website and newspaper. It has changed its logo for the first time since its been printed. The globe logo is now replaced with a large circle that coordinates to the color of the topic discussed, for example green is for the money section. They also changed the look of the website to a cleaner, more interactive look. They are one of the only national newspapers that does not charge for online access. USA Today has always been innovative in how it gives news to readers and the leadership does not feel that its readers should not have to pay to try its way. Strengths: 1. Innovative 2 Visually different from other newspapers; easily to recognize at newsstands 3. Individual State information 4. Works with third-party buyers(hotels) to increase readership. Weaknesses: 1. Low ratings from Critics 2. Does not have pay wall to charge online readers 3. two-thirds of readers do not actually pay for the newspaper. They receive free copies from third-party buyers. Opportunities: 1. Company can utilize and partner with other websites to bring traffic 2. Kindle/Nook popularity. Can sell electronic subscriptions to readers. Threats: 1. Readers changing their habits where they’re getting their news. Such as social networking sites instead of newspapers. 2. Rising competition from New York Times and Wall Street Journal...
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...THE NEW YORK TIMES COMPANY: A Case Study Analysis John J. Head WestCom Group Consulting Inc. School of Communication Telecommunications Management 4480 Western Michigan University 1903 West Michigan Avenue Kalamazoo, Michigan 49008 November 8, 2012 ©2012 John J Head Source: New York Times Co. Table of Contents I. Historical Overview 1 Early steps 2 Diversification 3 Challenges, changes 4 II. Organizational structure 5 Table 1 5 III. Business Operations 6 Table 2 7 The flagship 8 IV. Financial performance 9 Table 3 9 V. Future outlook 11 Branding 11 SWOT analysis and other risks 12 Table 4 13 Demographics 15 Philosophy 16 i Endnotes 18 I. HISTORICAL OVERVIEW “All the News That’s Fit to Print.” Special are those instances in business when a slogan becomes so synonymous with a company. Those words, found on the front page of every copy of every edition of The New York Times since 1896, began as a way to define the publication to its readership. That slogan stands to this day, but the newspaper and its parent, The New York Times Company, have grown far beyond the reaches of New York City and its surrounding boroughs. The New York Times Company is a diversified media company whose core purpose is “to enhance society by creating, collecting and distributing high-quality news, information and entertainment.”1 It is a publicly traded company (NYTC on the New York Stock Exchange) and publishes three major daily newspapers...
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...Stars': Love In A Time Of Cancer In his Pulitzer Prize–winning book The Emperor of All Maladies: A Biography of Cancer, Siddhartha Mukherjee writes that as recently as the 1950s, cancer was so feared and taboo that the New York Times refused to print the word in a support-group advertisement. It was the second-leading cause of death in the United States then — just as it is now — but it was as mysterious to most people as mortality itself. There is something monstrous about a disease that kills by wanting to live; cancer's goal is to grow and prosper, with absolutely no regard for its host. It makes sense that people couldn't speak about it — it's not easy to commiserate about a nightmare. And yet, human instinct tells us to band together to fight our enemies, even on the cellular level. Gradually, with scientific breakthroughs and education, cancer became less of a mum word and more of a buzzword. Hollywood jumped on the drama surrounding the disease, and soon films like Terms of Endearment and Beaches were keeping tissue companies in business. Novels and magazine articles highlighted survivor stories; television started adding characters afflicted with illness. Even Sex and the City's carousing Samantha had her share of chemo. In recent years, the trend has gone one step beyond talking about cancer — the goal now, at least for pop culture, is to find the humor in it. Fortunately, John Green is the kind of writer to deliver it. John Green is the New York Times best-selling...
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...CheckPoint - Argument Credibility Locate a link to an online video or print news story from your favorite online news source. Your choice of source may range from a major news network to a small opinion magazine, but should not include YouTube or Google VideoTM video search. Select a story in which claims are made, and note the story title and source name. If you cannot obtain a direct link to a video, write a summary of the video’s key points and provide a link to the Web site where you found the clip. Answer the following questions in a 100- to 200-word response: What claims are being made? Do the claims conflict with your personal observations? What background information do you have about the claims? What is the expertise of the author, if any? Is the author biased and untrustworthy, or unbiased and trustworthy? The article I chose is, Greece Nears the Precipice, Raising Fear by Landon Thomas Jr., Published: September 19, 2011 - NY Times. http://www.nytimes.com/2011/09/20/business/global/as-greece-struggles-the-world-imagines-a-default.html?ref=economy I chose this article for its argumentative but explanatory explanation on the topic of Greece’s debt problems. This article describes the recent economic troubles in Greece and possibilities of default on government debt. The article claims that if Greece does not act upon its debt and default larger problems can arise in their economy as well as other parts...
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...APSS292 Chinese Politics (Spring 2014) The Hong Kong Polytechnic University Mid-term Assignment Instructor: Dr. M. Pong Write a 400-word paper (double-spaced, Times New Roman, 12 pt. font, one-inch margins) relating a recent newspaper article to a topic discussed in the course so far. In the paper, please address the following three questions: 1) How does the article relate to Chinese politics? 2) How does the content of the article relate to the information found in the readings for this course? For example: • Does it provide evidence that supports what was in the readings or that counters it? • Does it provide an example of something mentioned in the reading? 3) What does this ultimately tell us – what broader implications does it have and why is it important? Guidelines: 1. You are not permitted to choose an article focused on a topic from the same week as your presentation topic or your term paper topic. 2. The following are recommended sources for this assignment: South China Morning Post, The New York Times, The International New York Times (formerly The International Herald Tribune), The Economist, The Wall Street Journal, and BBC News. a. If you choose an article from a source not included in this list, please make sure that the source you have chosen is widely-read and reputable. b. If you choose to use an article from the People’s Daily or another state-run Chinese newspaper, you must discuss the article and its contents as coming from the perspective of the Party...
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...CASE 9-1: NEW YORK TIMES 1. Describe NYTD’s evolution to date. What is strategy of NYTD? Are the organization and control consistent with the strategy? Evolution: New York Times first ventured into the Internet in 1995. Back then, the company was called the New York Times Electronic Media Company. In 1999, a new operating division, Times Company Digital, was created, which reported directly to corporate management. The new division included NYTimes.com, Boston.com, NYToday.com, GolfDigest.com, WineToday.com, and Abuzz. The new division had a decentralized structure and different organizational structures but still with similar roles as a common newspaper. The different websites were combined in the new organization to be able to learn from each other. A lot of effort was then put into creating a culture of team-work and openness, and the NYTD moved into a new building. This separated unit, first organizationally and then physically, led to tensions between the original Company and the new division. The new culture and employees hired from outside the Company created a very competitive internal environment. In 2001 the company owned several broadcast media properties, and the New York Times brand was believed to be the company’s most valuable asset, built through years of topnotch reporting and analysis, plus marketing and promotion. By September of 2001, NYTD had developed and was operating two websites: NYTimes.com and Boston.com. The websites included Internet access to the...
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...DeBrae Jones Week 4 Individual Assignment Knowing Your Audience Paper and Communication Release BCOM/275 Austin Matthews Introduction In 2010, 33 miners were trapped in a copper mine for a little over two months. The incident was covered through every world media outlet from televised news broadcast, radio stations, websites, to conventional newspapers. “On Aug. 5, 2010, a gold and copper mine near the northern city of Copiapó, Chile caved in, trapping 33 miners in a chamber about 2,300 feet below the surface. For 17 days, there was no word on their fate. As the days passed, Chileans grew increasingly skeptical that any of the miners had survived — let alone all of them. But when a small bore hole reached the miners’ refuge, they sent up a message telling rescuers they were still alive” (New York Times 2011, October 12). The method in which each news source or media outlet chose to cover and convey the information; can and will determine how the reader, viewer, or listener will translate the received information. Understanding the Audience When considering the different roles and people of the audience when transferring information in an informative method; we must begin to try and understand human emotion, religious beliefs/concepts and theories, ethnicity, region, and a host of other components that are key when appealing to the target audience. Knowing who the people are that the message is being conveyed to will ensure the effectiveness and audience appeal...
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