{"id":14461,"date":"2016-11-13T22:22:47","date_gmt":"2016-11-14T03:22:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/we-are-not-dead-yet-the-parable-of-the-new-york-times\/"},"modified":"2016-11-13T22:22:47","modified_gmt":"2016-11-14T03:22:47","slug":"we-are-not-dead-yet-the-parable-of-the-new-york-times","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/we-are-not-dead-yet-the-parable-of-the-new-york-times\/","title":{"rendered":"\u201cWe are not dead yet!\u201d \u2013 The Parable of the New York Times"},"content":{"rendered":"

\u201cHaven’t you heard of that madman who in the bright morning lit a lantern and ran around the marketplace crying incessantly?\u201d[1]<\/a> This madman could be any publisher in the late 1990s, when the newspaper companies faced a new and challenging change: the possible death of the printed newspaper and the rise of the Internet.<\/p>\n

Since the publishing of the first newspapers, there has always been a struggle for existence \u2013 in this case circulation.[2]<\/a> With the rise of the Internet, a lot of people shifted to this new device, amounting to a decrease of subscriptions for printed newspapers while the consumers searched for free and current news online.[3]<\/a> This shift from printed news to news online resulted in a decline of the traditional newspaper revenues through subscription, retail and classified advertising. The tragedy for newspaper companies hereby lies in their rising popularity with more readers than ever but fewer who are actually paying.[4]<\/a><\/p>\n

So the interesting question arises, how a newspaper company like the New York Times Company <\/em>has changed its business as well as operating model in order to stay not only barely alive but thrive?<\/p>\n

The New York Times Company<\/em>, one of the major global multimedia news companies, was founded in 1851 by Henry Jarvis Raymond and George Jones.[5]<\/a> As with the Internet new challenges and opportunities arise, the New York Times Company<\/em> tried to adapt their business and operating model to this new change.<\/p>\n

In this short article I want to outline five adaptions the company has taken.<\/p>\n

The first one was to focus on its core brand \u2013 the New York Times<\/em>. In 2012 the company sold its Regional Media Group<\/em> containing out of 16 regional newspapers for $143 million[6]<\/a> and agreed to also sell The Boston Globe<\/em> as well as other New England media properties for $70 million one year later. Additionally it was planning to close editing and prepress print production operations in Paris.[7]<\/a><\/p>\n

One big opportunity the digital transformation provides is the reduction of acquisition costs of new customers to a near-zero amount,[8]<\/a> so to go a step further, the company was planning on investing about $50 million over the next three years in international digital expanding.[9]<\/a> Furthermore it invested in different editions with the latest one being the Spanish edition, launched in February 2016: New York Times en Espa\u00f1ol<\/em>.[10]<\/a> In order to attract a global audience, the International Herald Tribune<\/em> was retitled to The International New York Times<\/em>.[11]<\/a><\/p>\n

Another step, the company has taken, was to introduce a paywall. On March 2011 the site became restricted once again,[12]<\/a> after the two first attempts to let readers pay for articles failed.[13]<\/a> Capitalizing on its former mistakes it chose a combination of a metered system and device-specific offers with a limit of up to 20 free articles as subscription method.[14]<\/a> Rapidly it became the second-largest paid subscription website among newspapers[15]<\/a> and reached about 1.4 million digital-only subscriptions in 2016.[16]<\/a><\/p>\n

\"screen-shot-2016-11-13-at-22-16-17\"<\/a><\/p>\n

Exhibit 1:\u00a0Subscription Choices for the New York Times<\/a><\/p>\n

With the consumption of news mainly through technical devices, the New York Times Company <\/em>launched apps for these devices in which you can not only browse the news constantly and comfortably but also chose different kinds of subscription possibilities.<\/p>\n

\"unknown-1\"<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\"unknown\"<\/a><\/p>\n

Exhibit 2: NY Times App \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Exhibit 3: Pricing Structure in the NY Times App<\/p>\n

As a lot of revenue was made through advertisement, the popularity of free online venues like craigslist[17]<\/a> and the rise of ad-blocking led to a worsening of the situation for a lot of publishers.[18]<\/a> The New York Times Company <\/em>pursued another concept and founded T Brand Studio<\/em> in 2014, a custom content studio containing of 70 journalists, videographers, designers and engineers who delivered more than $50 million in revenue in 2016 for creating and distributing brands.[19]<\/a><\/p>\n

In order to gain more revenue, the company could take further steps like for example personalizing advertising. Since a lot of subscriptions are through devices like tablets or smartphones, the app could get access to data in order to customize advertising. With this, not only more revenue from advertisers could be gained but also things that are distributed through the company can be sold better.<\/p>\n

Then with creating an additional broad portfolio around its core product, it can reach both target audience and a general audience. This could contain the collaboration with for example research institutions which can lead to an increase in the quality and diversity of articles while reducing journalist costs and creating a separate revenue from the institutions who want to publish their papers on the website.<\/p>\n

Hence, the Internet is \u2013 if used wisely and smart \u2013 not the death knell for newspaper companies, instead it is a great chance to improve. Paper is slowly, the Internet and its digital transformation instead fast. News can actually be breaking and widespread, more people can be reached and especially newspaper companies can benefit from this growth by using the new technologies.<\/p>\n

 <\/p>\n

798 words<\/p>\n

 <\/p>\n

Literature<\/strong><\/p>\n

APSFK: Lincoln Offers Frequent NY Times Readers a Way around the Paywal (2011). <http:\/\/www.psfk.com\/2011\/03\/lincoln-offers-frequent-ny-times-readers-a-way-around-the-paywall.html> (10.11.2016).<\/p>\n

Chozick, Amy: Fourth-Quarter Profit and Revenue Declined at the New York Times Company. In: The New York Times (02.02.2012), <http:\/\/www.nytimes.com\/2012\/02\/03\/business\/media\/quarterly-profit-falls-12-2-at-times-co.html> (10.11.2016).<\/p>\n

Doctor, Ken: At Almost 400,000 Digital Subscribers, Inside the New York Times Pay Strategy, Year 2. In: Newsonomics (20.02.2012), <http:\/\/newsonomics.com\/at-almost-400000-digital-subscribers-inside-the-new-yorktimes-pay-strategy-year-2\/> (10.11.2016).<\/p>\n

Ember, Sydney: New York Times Co. Reports Loss as Digital Subscriptions Grow. In: New York Times (03.05.2016), <http:\/\/www.nytimes.com\/2016\/05\/04\/business\/media\/new-york-times-co-q1-earnings.html?_r=0> (10.11.2016).<\/p>\n

Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016. <https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016).<\/p>\n

Haughney, Christine: New York Times Company Sells Boston Globe. In: New York Times (03.08.2013), <http:\/\/www.nytimes.com\/2013\/08\/04\/business\/media\/new-york-times-company-sells-boston-globe.html> (10.11.2016).<\/p>\n

Isaacson, Walter: How to Save Your Newspaper. In: Time (05.02.2009),
\n<sites.google.com\/site\/sarajaneschlesinger\/Home\/intro\u2014to-newspaper\/HowtoSaveYourNewspaper2.5.2009.doc> (06.11.2016).<\/p>\n

Newman, Nic: Overview and Key Findings. In: Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016. <https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016), pp.8-29.<\/p>\n

New York Times: Our History. <http:\/\/www.nytco.com\/who-we-are\/culture\/our-history\/#1835-1880> (06.11.2016).<\/p>\n

Nietzsche, Friedrich: The Gay Science. With a Prelude in German Rhymes and an Appendix of Songs. 2008.<\/p>\n

Park, Robert E.: The Natural History of the Newspaper. In: The American Journal of Sociology, 24 (3). 1923, pp. 273-289.<\/p>\n

Smolkin, Rachel: Adapt or die: as newspaper companies confront a challenging future, they are increasingly viewing their trademark print product as the engine driving a diverse ‘portfolio’ that embraces other ‘platforms’ such as Web sites and niche publications. Is this a strategy for survival? In: American Journalism Review, 28(3). 2006, p. 16+, <Academic OneFile<\/em>, go.galegroup.com\/ps\/i.do?p=AONE&sw=w&u=wate34930&v=2.1&id=GALE%7CA147375836&it=r&asid=fb3802564cc00609b7404dafb792faff> (10.11. 2016).<\/p>\n

The Associated Press: New York Times selling regional papers for $143M. In: cnsnews.com (27.12.2011), <http:\/\/cnsnews.com\/news\/article\/new-york-times-selling-regional-papers-143m> (10.11.2016).<\/p>\n

Thompson, Mark: The Challenging New Economics of Journalism. In: Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016. <https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016), pp.108-109.<\/p>\n

 <\/p>\n

 <\/p>\n

[1]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nietzsche, Friedrich: The Gay Science. With a Prelude in German Rhymes and an Appendix of Songs. 2008, p.119.<\/p>\n

[2]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Park, Robert E.: The Natural History of the Newspaper. In: The American Journal of Sociology, 24 (3). 1923, pp. 273-289, p.274.<\/p>\n

[3]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Newman, Nic: Overview and Key Findings. In: Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016. <https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016), pp.8-29, p.8.<\/p>\n

[4]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Isaacson, Walter: How to Save Your Newspaper. In: Time (05.02.2009), <sites.google.com\/site\/sarajaneschlesinger\/Home\/intro\u2014to-newspaper\/HowtoSaveYourNewspaper2.5.2009.doc> (06.11.2016).<\/p>\n

[5]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 New York Times: Our History. <http:\/\/www.nytco.com\/who-we-are\/culture\/our-history\/#1835-1880> (06.11.2016).<\/p>\n

[6]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Associated Press: New York Times selling regional papers for $143M. In: cnsnews.com (27.12.2011), <http:\/\/cnsnews.com\/news\/article\/new-york-times-selling-regional-papers-143m> (10.11.2016).<\/p>\n

[7]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Haughney, Christine: New York Times Company Sells Boston Globe. In: New York Times (03.08.2013),<http:\/\/www.nytimes.com\/2013\/08\/04\/business\/media\/new-york-times-company-sells-boston-globe.html> (10.11.2016).<\/p>\n

[8]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Doctor, Ken: At Almost 400,000 Digital Subscribers, Inside the New York Times Pay Strategy, Year 2. In: Newsonomics (20.02.2012),
\n<http:\/\/newsonomics.com\/at-almost-400000-digital-subscribers-inside-the-new-yorktimes-pay-strategy-year-2\/> (10.11.2016).<\/p>\n

[9]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ember, Sydney: New York Times Co. Reports Loss as Digital Subscriptions Grow. In: New York Times (03.05.2016),
\n<http:\/\/www.nytimes.com\/2016\/05\/04\/business\/media\/new-york-times-co-q1-earnings.html?_r=0> (10.11.2016).<\/p>\n

[10]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016.
\n<https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016), p.32.<\/p>\n

[11]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Haughney: New York Times Company Sells Boston Globe.<\/p>\n

[12]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chozick, Amy: Fourth-Quarter Profit and Revenue Declined at the New York Times Company. In: The New York Times (02.02.2012),
\n<http:\/\/www.nytimes.com\/2012\/02\/03\/business\/media\/quarterly-profit-falls-12-2-at-times-co.html> (10.11.2016).<\/p>\n

[13]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Vivian Schiller, \u201cA Letter to Readers About TimesSelect,\u201c (2007). <http:\/\/www.nytimes.com\/ref\/membercenter\/lettertoreaders.html>
\n(10.11.2016).<\/p>\n

[14]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 APSFK: Lincoln Offers Frequent NY Times Readers a Way around the Paywal (2011).
\n<http:\/\/www.psfk.com\/2011\/03\/lincoln-offers-frequent-ny-times-readers-a-way-around-the-paywall.html> (10.11.2016).<\/p>\n

[15]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Chozick: Fourth-Quarter Profit and Revenue Declined at the New York Times Company.<\/em><\/p>\n

[16]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ember: New York Times Co. Reports Loss as Digital Subscriptions Grow.<\/p>\n

[17]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Smolkin, Rachel: Adapt or die: as newspaper companies confront a challenging future, they are increasingly viewing their trademark print product as the engine driving a diverse ‘portfolio’ that embraces other ‘platforms’ such as Web sites and niche publications. Is this a strategy
\nfor survival? In: American Journalism Review, 28(3). 2006, p. 16+, <Academic OneFile, go.galegroup.com\/ps\/i.do?
\np=AONE&sw=w&u=wate34930&v=2.1&id=GALE%7CA147375836&it=r&asid=fb3802564cc00609b7404dafb792faff> (01.11. 2016), pp.16.<\/p>\n

[18]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Newman: Overview and Key Findings, p.8.<\/p>\n

[19]<\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Thompson, Mark: The Challenging New Economics of Journalism. In: Fletcher, Richard; Levy, David A. L.; Newman, Nic; Nielsen, Rasmus Kleis: Reuters Institute Digital News Report 2016. <https:\/\/reutersinstitute.politics.ox.ac.uk\/sites\/default\/files\/Digital-News-Report-2016.pdf> (06.11.2016), pp.108-109, p.108.<\/p>\n","protected":false},"excerpt":{"rendered":"

If used wisely and smart, the digital transformation does not necessarily mean the death for newspaper companies. 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