...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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...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 as negative, experiences...
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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...
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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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...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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...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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...regarding Chicago Tribunes’ major competitors. This report covers some recommendation for further strategic positioning and investments to create a competitive advantages. In presenting this report, I want to pay tribute to the work of every one of my colleague throughout the strategic department and all journalists within this newspaper. It is a pleasure to find strategies and solutions to keep our business alive and develop further goals. If you have any further questions, please do not hesitate to contact me at any time. Yours sincerely, Zora Bouadjenak; MBA Strategic Advisor Chicago Tribune 1 HOW DOES THE IMPLEMENTATION OF APPS AND E-SUBSCRIPTIONS EFFECT NEWSPAPER PUBLISHERS REVENUES AND THEIR STRATEGIES FOR FURTHER BUSINESSES? A case for Chicago Tribune Newspaper Lectures name: Date of submission: Author’s name: ID: Mr. Chong Hock CHUA 12. September 2011 Zora BOUADJENAK 12643509 2 1 Executive Summary Newspaper publishers are facing the new digital era with different strategies. Chicago Tribune needs to...
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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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...CASE QUESTIONS Abercrombie & #Fitchthehomeless 1) Why did this crisis occur? Why did Jeffries’s comments trigger such a large response? 2) Evaluate A&F’s response. What could the company have done better? 3) What changes should A&F make? Autobytel.com 1) How does the internet change traditional channel structures? Does the internet facilitate disintermediation, re-intermediation or can it do both? 2) Can an intermediary serving two customers avoid alienating one of the groups as it searches for ways to grow? If not, why? If so, how? 3) What is the value proposition for each of Autobytel’s customers? 4) What is the basis of Autobytel’s market leadership? Is it sustainable? Why or why not? 5) Where do you think this market is ultimately heading? Is Autobytel missing the boat? 6) What should Autobytel do? CardSwap 1) What is the value of gift cards to retailers? 2) What is the value of gift cards to consumers? Is the Consumers’ Association of Canada correct in saying there is no value to the consumer? 3) Would you use a service like CardSwap? Why/Why not? 4) What is the size of the market that CardSwap is focusing on? 5) What is CardSwap’s sustainable competitive advantage? 6) What is the value of a customer to CardSwap? How much should Poptia be willing to pay to recruit a customer? 7) What should Poptia do to generate customers? Cialis 1) What are the most relevant dimensions along...
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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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...Maryland University College The Effect of the internet on The Newspaper Industry’s Revenues The newspaper industry is currently in the midst of a financial crisis due to the increased competition from news outlets on the internet and the changes in how the public chooses to access information. In 2011 seven major American newspapers declared bankruptcy. Of the roughly 1400 newspapers in the nation approximately half will go out of business in the next decade. Between the years 2001 and 2008 average print circulation went down by 13.5%. Over 80% of newspaper revenues are generated from their advertisement sales, however, among newspapers with an ancillary websites, they average less than 10% of these revenues from their web-based content (Kirchhoff, pp. 2-4). The struggle facing the newsprint media is their inability to make a profitable transition to web-based platforms. This paper will explore many of the challenges involved in making that transition as well as offer up possible strategies that the print media could utilize in the future. It is imperative that the content follow in line with what the medium demands, in order to flourish in the new frontier of distributing the news (Postman, p. 88). The newspaper industry as a whole has been slow to embrace the new internet based technology. They have yet to be successful in walking the line between traditional print content and the interactive multimedia demanded by online readers. In order to stay afloat in the coming...
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...DIGITAL MARKETING: DANIEL J. WOOD Digital and non-digital native strategies analysis The Guardian Words count : 2504 Patrick Kibale “The Guardian has realised that digital isn’t just an extension of their print offering. They understand that digital journalism is different from its print counterpart. They realise that they’re old processes will need to adapt for the digital age.” Paul Boag. Consultant and expert in digital transformation Patrick Kibale [ID: 1451823] Digital Marketing BA (Hons) in Management Contents About The Guardian ................................................................................................................... 2 Newspaper circulation goes down .............................................................................................. 3 Digital policy .............................................................................................................................. 4 Website ................................................................................................................................... 4 Blogs ....................................................................................................................................... 5 Podcasts .................................................................................................................................. 5 Apps ...................................................................................................................................
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