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%

The Wall Sreet Journal -lucas bentivenha

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