Transcript of New York Times Case Analysis

New York Times: Seeking Salvation within a Declining Industry Case: New York Times Paywall Questions 1. Is the paywall working? 2. How would you evaluate the current paywall compared with the two prior ones? Do youthink it is appropriately designed compared with the Financial Times or the Wall Street Journal 3. Why are newspapers in trouble? What is the goal of The Times in creating a paywall? 4. Should The Times actively manage its transition from print to digital? If so, how? If not, whynot? 5. Does the paywall seem like a good strategy for newspapers in general? What kinds of newspapers would you expect to benefit from a paywall compared to those that would likelynot benefit? Case Analysis High speed rail is a type of passenger rail system significantly faster than traditional rail systems. They are used all over Europe, and places like China They are being developed so that some trains reach speeds of over 300km/h Very safe because of a predictable course, and it lowers the possibility of collisions Less weather related delays than airplanes Produce less noise Shortens trip time Reduce dependence on oil High speed rail is environmentally friendly and will cut down carbon emissions What alternative forms of transportation would you recommend? (think about social, environmental, economical issues) High Speed Rail System Teleconferencing Teleconferencing is a live exchange of information between several people It would be a positive alternative for flying for business people With technology being developed it is getting easier to communicate and share data

Meetings could be held between two parties without having to leave the city Primary activities The New York Times Company, a leading global, multimedia news and information company with 2012 revenues of $2.0 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, NYTimes.com , BostonGlobe.com, Boston.com and related properties. The Companys core purpose is to enhance society by creating, collecting and distributing high-quality news and information. Support activities The New York Times Company selectively invests in digital media start ups to support our innovation efforts. Current investments include: Continue to use social media and charge subscribers for in-depth internet access. Continue to make acquisitions of internet companies and learn from them. Expand customer base to other growing countries. Create or shift focus to a younger audience. Look for ways to merge with media giants such as Apple, YouTube, Google, or BBC so as to gain non-substitutable capabilities. Core Capabilities and Competences NY Times main competitors are: The New York Times company is also making acquisitions of small technology companies, learning from them and selling them. Top Three Circulated Newspapers in the USA 1.) The Wall Street Journal 2.) USA Today 3.)The New York Times Founded in 1851 Sold for a penny, now sells for $2.50 daily and $5 dollars for the Sunday Specials NYTimes.com founded in 1996 NYT first mobile application in 2008 @NYTimes on Twitter has 8,235,704 followers NYT on Facebook has 2,934,589 fans New York Times PayWall subscription service started in 2011 Company Overview National Circulation Free news information available online E-readers Digital newspapers and magazines

Decrease of spending on advertisement Industry has been in decline for the past five years Industry restructure Industry is seeking new ways to generate revenues Total revenues of the newspaper industry for 2012 is 38.6 billion 22.5 billion in advertising revenue Digital ads take up 17% of total advertising revues 10.5 billion in circulation revenue Mobile Ad revenues doubled since 2011 The Newspaper Industry Almost Out Of Ink The width of the paper was narrowed by six inches To a new style of a 48 inch web styled width 5% reduction in news coverage Changes to Survive Online MediaDo not need a lot of capital to enter the market Social Media Websites & Blogs Printed MediaVarious Established competitors in the market. Thin profit margins. Dying Business. No Licensing Requirements Television Social Media Websites Blogs Radio Magazines Paper/ Ink Suppliers - Moderate Limited Items that are still printed due to changes in Technology. Limited Number of Suppliers (plant closures, mergers, bankruptcies) Low Switching costs. NYT is large company with market power Equity in a Paper Mill Subscribers They have several ways to get their news/ entertainment. Switching costs are low. They control advertisers. Established newspaper companies in the print & online market. Various other competitors in the online market. Product differentiation and innovation is key. Dominant Business Donohue Malbaie Madison Paper Industries Other Investments Recession/ Economic Uncertainty High Unemployment Print Sales are Down Audience does not want to pay for online subscription

Companies cut advertising budgets Preferences shifted to digital media Can obtain free news information on-line Audience is now browsers instead of readers Audience's perception of news has changed Want to "Be Green" Technological Move to digital content Social media, blogs & other sources E-Readers & Apps Joint Ventures High High High Journalists Key people to differentiate their products Advertisers - High They have several outlets to advertise. High Low High Questions? "Enhance Society by creating & distributing high quality news, information & entertainment." Newspaper industry does not have licensing requirements Libel Laws Press Monitors Brand Journalists Integrity Core Capabilities Customer Loyalty Differentiation Strategy Business Level Strategy Market Segmentation Broad - Various sections Market segmentation Audience Ages of 35+ Intellectual Differentiation Journalism Product availability across different platforms Share knowledge Increase Market Power & Bargaining Power with Suppliers Bargaining Power with Supplier (Vertical Movement on Supply Chain) What Needs? Deliver Information & News Deliver across various platforms High Quality Journalism Journalism Integrity
Recommendations: Continue to use social media and charge subscribers for in-depth internet access. Continue to make acquisitions of internet companies and learn from them. Expand customer base to other growing countries. Create or shift focus to a younger audience. Look for ways to merge with media giants such as Apple, YouTube, Google, or BBC so as to gain nonsubstitutable capabilities.