New York Time’s company makes use of a fusion of a subscription-based model and advertisement based one (2017 Annual Report, 2018). The same annual report is taken in account for all the statistics presented in the post. They charge the customers for content and also companies/advertisers. It could be observed that the business has shifted or trusted more on a subscription-first business model with more than a billion dollars coming last year from this method alone. This model tends to put a charge for the content for the users (Postmus, Wijngaard & Wortmann, 2009). The company also appears to retain staffs who have been with the business for long and use their knowledge and experience to transform the company for better. This was evident with one of their very old staff who worked as publisher since 1992, when retired, was offered and hired as chairman of the company’s board of director.
The company has a huge digital base and with more than 135 million viewership online, the shift of people going to the internet to find general information on the current events and news stories will help further power the movement and strategy that NY Times Company has in place. They don’t only provide a paid version of newspaper or news online but also make it available to readers for free to a certain number of news per month. That way people can still explore the news, have the news indexed in all the search engines and allow users easy access to it. People without knowing what they’re getting into may not be able to make a decision if they really want to be subscribed but this model would definitely help them attract more paid subscribers. They have a total of 3.6 million total subscribers in the 2017 year end. That includes of around 73% of digital-only subscribers. Print media contributes to the remaining 27%. The number of paid digital-only subscribers rose by 42% since 2016. With such a rise in the subscribers, it’s obvious that the revenue generated from it would increase as well, which it did. The revenue from subscribers crossed over a billion dollar which is an increment of around 13% if compared to the previous year.
While looking at the advertisement, ups and downs can be seen with digital media catching up the revenue generated from print with an increase of 12.4%. During the same period, print media saw a slide of 13.91% to end up at 320.22 million dollars of revenue. That meant that the NY Times Company saw a decrease in the overall advertisement revenue by 3.82% and was 558.513 million dollars. Though a decline, it signed that the digital media is more in demand and the rise of advertisers and subscribers in that media signals for better things to come for the business given their business model and strategy.
The increase of interest of customers towards digital media compared to print has been significantly contributed by an interactive environment, real-time reporting as one doesn’t have to wait for the entire day and night to wait for another edition and alike. Business acquisition of other names as in Sweethome and Wirecutter have helped the business wider their scope. Looking at the way the business has structured itself, it looks as if the company is adapting to the continuously and rapidly changing environment to devise strategies accordingly. That is further stressed by the business moving towards subscription first model but also providing free content to the user. Had they put the system under a closed platform, they would have missed out on 135 million readers who are non-paid viewers. They could be used by business as a way to leverage more out of advertisers and also ensures that their contents are indexed in the search engines. I believe their model is working and will continue working while generating revenue, increase subscribers and grow in the days to come.
References
Postmus, D., Wijngaard, J., & Wortmann, H. (2009). An economic model to compare the profitability of pay-per-use and fixed-fee licensing. Information And Software Technology , 51 (3), 581-584.
New York Time’s company makes use of a fusion of a subscription-based model and advertisement based one (2017 Annual Report, 2018). The same annual report is taken in account for all the statistics presented in the post. They charge the customers for content and also companies/advertisers. It could be observed that the business has shifted or trusted more on a subscription-first business model with more than a billion dollars coming last year from this method alone. This model tends to put a charge for the content for the users (Postmus, Wijngaard & Wortmann, 2009). The company also appears to retain staffs who have been with the business for long and use their knowledge and experience to transform the company for better. This was evident with one of their very old staff who worked as publisher since 1992, when retired, was offered and hired as chairman of the company’s board of director.
The company has a huge digital base and with more than 135 million viewership online, the shift of people going to the internet to find general information on the current events and news stories will help further power the movement and strategy that NY Times Company has in place. They don’t only provide a paid version of newspaper or news online but also make it available to readers for free to a certain number of news per month. That way people can still explore the news, have the news indexed in all the search engines and allow users easy access to it. People without knowing what they’re getting into may not be able to make a decision if they really want to be subscribed but this model would definitely help them attract more paid subscribers. They have a total of 3.6 million total subscribers in the 2017 year end. That includes of around 73% of digital-only subscribers. Print media contributes to the remaining 27%. The number of paid digital-only subscribers rose by 42% since 2016. With such a rise in the subscribers, it’s obvious that the revenue generated from it would increase as well, which it did. The revenue from subscribers crossed over a billion dollar which is an increment of around 13% if compared to the previous year.
While looking at the advertisement, ups and downs can be seen with digital media catching up the revenue generated from print with an increase of 12.4%. During the same period, print media saw a slide of 13.91% to end up at 320.22 million dollars of revenue. That meant that the NY Times Company saw a decrease in the overall advertisement revenue by 3.82% and was 558.513 million dollars. Though a decline, it signed that the digital media is more in demand and the rise of advertisers and subscribers in that media signals for better things to come for the business given their business model and strategy.
The increase of interest of customers towards digital media compared to print has been significantly contributed by an interactive environment, real-time reporting as one doesn’t have to wait for the entire day and night to wait for another edition and alike. Business acquisition of other names as in Sweethome and Wirecutter have helped the business wider their scope. Looking at the way the business has structured itself, it looks as if the company is adapting to the continuously and rapidly changing environment to devise strategies accordingly. That is further stressed by the business moving towards subscription first model but also providing free content to the user. Had they put the system under a closed platform, they would have missed out on 135 million readers who are non-paid viewers. They could be used by business as a way to leverage more out of advertisers and also ensures that their contents are indexed in the search engines. I believe their model is working and will continue working while generating revenue, increase subscribers and grow in the days to come.
References
Postmus, D., Wijngaard, J., & Wortmann, H. (2009). An economic model to compare the profitability of pay-per-use and fixed-fee licensing. Information And Software Technology , 51 (3), 581-584.
The New York Times Company. (2018). 2017 Annual Report . Retrieved from s1.q4cdn.com/156149269/files/doc_f...