1. presentsPrepared by Jordhy Ledesma, Jenny Wang, Yi Yang and
William Prescott
2. Agenda Industry Background Newspapers Media in general
Scenarios Pros and cons Stakeholder perspectives Recommendations
What Happened? Q&A
3. Newspaper Industry Background
4. Newspaper Readership Read Newspapers DailyPre-1929
80%60%40%Post-1960 1961-197720% Post-1994 at 9% by 2011?
19801985199019952000Sources: Robert Putnam, Bowling Alone,
CBM20052010
5. Newspaper Readership 2.0 Read Newspapers DailyPre-1929 The
Great Depression 80%60%40%Color TV, Post-1960 VCRs20% And now
smartphones! 19801985199019952000Sources: Robert Putnam, Bowling
Alone, CBM20052010
6. Media Industry Background
7. Media Fragmentation, 1960s to 2010s
8. Scenarios
9. Possible Scenarios Scenario 1 Keep the Paper and Remain Free
for the Web Scenario 2 Keep the Paper and Charge for the Web
Scenario 3 Ditch the Paper and Charge for the Web
10. How can The NY Times Respond? 1.Declining
readership2.Exponentially increased competition3.Low-tech employees
and contributors4.Problems across the board: in news, travel
guides, classifieds, sports and editorials5.Loss of investor
confidence6.Increasing paper and production costs7.Less and less
advertisers
11. Scenario 1 Do NothingKeep the Paper and Remain Free for the
Web PROS Attract as many readers as possible Waiting for a better
business model Retain existing paper readers Keep competitiveness
to other free news channelsCONS High cost bottom line impact Lose
first mover advantage Decreasing financials
12. Scenario 2 - The Middle WayKeep the Paper and Charge for
the Web PROS Accommodate new way of reading Improve the financials
Expand to global business Retain existing consumersCONS Pay for the
web: Challenge to change consumer behavior Cannibalization of
readers and advertisers Lose strategy and resource focus
13. Rupert Murdoch on Paywalls, Print Media and the iPad
14. Scenario 3 All DigitalDitch the Paper and Charge for the
Web PROS More people rely on digital news sources Better
advertising data Wider potential audience Better for the
environmentCONS Loss of paper only readers Loss of public notice
advertisement revenue Greater competition in the digital arena
15. Jason Calacanis: NY Times vs Google
16. What Happened?
17. What Happened to the
Financials?http://markets.on.nytimes.com/research/stocks/tools/analysis_tools.asp
18. Paywall and R&D Changes
19. NY Times Research Labs
20. Conclusions Were in the listening era fornewspapers. They
need to listen to customers, technologists and analysts to adjust
their business models Industry-wide efforts to change the
mostlikely scenario are required NY Times communication abilities
arecritical to secure investor goodwill, persuade competitors and
allies and engage customers
21. Q&A
22. References The U.S. Newspaper Industry in Transition
Suzanne M. Kirchhoff Analyst in Industrial Organization and
Business September 2010 State of the Media 2010 U.S. Audiences and
Devices The Nielsen Company Exploiting the old while exploring the
new: Aworkshop on improving newspaper performance John F. Greenman
Alabama Press Association July 2008