The

Paywall

Agenda• Company Background• Key Issues• Industry and Competition• Earlier Paywall Attempts• Early Results• SWOT and PEST analyses

• Options and Suggestions• Pros and Cons• Future of Newspapers• Fast-forward to 2017:

NYTimes now• Lessons Learned

The New York Times newspaper was founded

The New York Times, the International Herald Tribune, The Boston Globe and About.com

www.nytimes.com

revenues in 2011operating 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

1996

March 17, 2011 launched in

2 weeks later

March 28, 2011 launched in

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March 17, 2011 launched in

2 weeks later

March 28, 2011 launched in

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?

- 50%

lucas bentivenha

The Wall Sreet Journal

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

Attempt 1 (1996)

Website Launch

$35 per month overseas

Attempt 2 (2005)

TimesSelect

$45.95 per year

4 options came to the fore

All or Nothing

Exclusive Content

Metered System

Device- Specific offer

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

• +390,000 paid digital subscribers

• 70% of the print subscribers registered for digital access for free

• The digital ad revenue by 5.3% but the print one by 7.8%

• Digital ad revenue = 28% of total ad revenue

Early Results

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 withfree 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?

Paywall with a different approach

Supporting Facts

Iris Chyi (2012) School of Journalism at the University of Texas

Americans are willing to pay

Micropayments are a great success in Germany and Netherland

But North America?

Pros

Legitimize the Content

Generates Revenues

Cons

Competition

Easy to get around

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

• You cannot stick to the old ways of doing business in the fast pace digital era

• Do not be afraid of radical changes

• Diversify your business

• People are still willing to pay for quality

Key Learnings