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The
Paywall
Agenda
March 17, 2011 launched in
2 weeks later
March 28, 2011 launched in
$ubscribe to continue reading
March 17, 2011 launched in
2 weeks later
March 28, 2011 launched in
By December 2011
390,000subscribe
rs
Key issues of the case
Are they
willing
to pay?
How the public
will react?
Is a paywall a good idea for a long term?
•The New York Times newspaper was founded•The New York Times, the International Herald Tribune, The Boston Globe and About.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
$143 million
- 50%
32 MM Unique VisitorsCPM Social U$ 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
20 free articles per month
Digit package costs $195 a year
380,000 paid digital subscribers
Attempt 1 (1996)
Website Launch
$35 per month overseas
Attempt 2 (2005)
TimesSelect
$45.95 per year
4 options came to the fore
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 DeliverySubscriptions PriceSubscriptions Price
Early Results
• 390,000 paid subscribers (Exhibit 12)
• Almost 70% of the print subscribers registered for digital access for free
• Key concern – the potential drop in website traffic and online advertising revenue
• In Q4 2011 the digital ad revenue for the Group increased by 5.3% (Table C)
• But print one declined by 7.8%
• For 2011 digital ads revenue = 28% of total ad revenue
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
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 SubstitutesHigh
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?
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?
Suggestions
The Future of Newspapers
Paywall
Some experts
considered it a
success
Temporary
measure for
declining industry
The Future of Newspapers
Paywall
Is it working
?
Will subscribers grow?
Digital will
cannibalize print?
Will it sustain in
the future?
Paywall
$3,75 / week
$6,25 / week
$8,75 / week
in 2017
in 2017
Vital moment in the life of The New York Times:
A need for change
New York Times in 2017
Report Staff Way of Working
Vision for the Future:
What needs to be changed
Key Learnings
Recommended