Nyt Paywall

1958 Words Jun 3rd, 2015 8 Pages
1. What are the changes that the newspaper industry is going through? Where do you think the “technology” of news on paper is in its lifecycle? Where is it likely headed?
The newspaper industry is undergoing a radical change in three primary areas caused by technology. First, the underlying two-sided business model is changing. With the Advent of internet, news content is easily and freely available from various sources but lacks quality journalism and credibility. Revenues from online advertising are not large enough to compensate for decline in revenues from print advertising & subscription. Newspaper industry is experiencing new realm of new content delivery and in process of understanding and establishing sustainable sources and
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Revenues from circulation in 2011 have marginally increased from 2010. The difference in revenues is $2940M-$2323B = $617M and we are only recovering an estimated $118M. There is variable cost savings associated with the loss of print subscribers but this is probably offset with loss of advertising revenue and development costs for digital solutions.
Recommendation – NYT should continue with its Paywall initiative as upwards of 40% incoming traffic is from other sites i.e. Google, yahoo etc. Internet delivery on mobile devices is also becoming popular. Additionally, lots of users are able to access news content via leaky paywall. This reflects users increasing interest in accessing NYT news content in digital format. Digital edition is in early stages for adoption by end users. New sources and models for revenue generation or sharing are to be discovered and streamlined. Internet will become “platform of choice” for majority of users in near future. New industry needs to continue exploring methods to present news content to user preferred way and adapt to new and different streams of revenue. The digital edition is in its growth phase heading into maturity. There is still potential to increase and development. The data seem to indicate that the New York Times is able to identify those with more willingness to pay and they are getting them to purchase at these increased costs. This
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