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The New York Times Paywall

GROUP-7
GAURAV SHARMA(NMP-30)
HIMANSHU TIWARI(NMP-32)
ISHA DAS(NMP-33)

Operating profit $ 57 Mn.Introduction – New York Times Founded on Sept 18’1851 By Henry J. Raymond & George Jones By 2011 had won 106 Pulitzer Prices Had turnover of $ 2.3 Bn. .

S. Industry size $ 35 Bn.U. 5000 Players Top 50 Players accounted for 75% of Business Journalism Industry was getting disrupted (Internet) Moving from Offline to Online Content Evolution of Digital disruption . News Paper Industry & Trends In 2009.

com & Other JVs . about.New York Times Business New York Times Media Group New England Media Group REGIONAL Media Group About Group i.e.

Online Subscription – THE PAYWALL First attempted by NY Times in 1996 Was priced @ $35 per month Was dropped to not disturb the increasing internet user traffic Second attempt in 2005 TIMES SELECT priced @ $49.95 Touched 227 thousand paid subscriber base by 2007 Closed on Sept 2007 due to criticism of pay wall approach User base had access to similar content through social media & blogs .

Other media sectors suffered revenue loses due to digital disruption iPad was another new medium of consuming news .61 Mn.BUSINESS CRISIS – NEWSPAPER INDUSTRY Overall paper circulation was declining YOY Advertisement revenues were declining Detroit free press went weekly from daily Ann Arbor went totally online Wall street journal introduced paywall successfully On contrary Times of London lost visitor traffic from 2.79 Mn to 1.

NYT FINACIALS – 2008 TO 2011   Revenues           Operating Cost       Total Operating Cost       Financials of the NYT Company ( $ millions)   2011 2010       Advertising 1221 1300 Circulation 941 931 Other 160 162 Total Revenues 2323 2393             Production Costs 957 962 SG &A 1020 1054 Depreciation and Amortization 116 121 2009   1336 936 167 2440     1021 1153 2008   1771 910 258 2940     1310 1328 134 144     Operating Profit/Loss Net Income/Loss 2308   74 20 2783   -41 -58 2094   57 -40 2137   234 108 .

extra on paid basis Device Specific Offers – Different schemes for devices  Partnered with Auto Manufacturer Lincoln for free subscription .Designing New Paywall NYT Types of Platforms available: All OR Nothing Exclusive Content Metered System Device Specific Offers NYT OPTED for: Metered System – Allowed 23 Articles per month.

80 Monday.Sunday $10.7 .75 NYT + Smartphone  $5.Friday  $7.0 NYT + Smartphone + Tablet  $8.75 Print Home Delivery Pricing: 7 Days  $15.80 Only Sunday  $7.40 Friday .Leaky wall Concept Those who directed through Search Engine – limited articles Those through Social media – unlimited access Digital Pricing: NYT + Smartphone  $3.

90.Results Febraury 2012 NYT Reported 3. Potential drop in Website traffic Concern in Online adv.000 paid subscriber 70% of paid subscriber registered for digital access However. Revenue Overall business sentiment was not positive .

However do away slowly and steadily with pay wall. Initially can offer longer subscription periods to loyal customers Discount on subscription to new customers . revenue.Conclusion & Recommendations Positive Growth in subscriber base In short Term pay wall was success Uncertain about long term strategy  Recommendation They should continue with pay wall until they have enough online adv.