New York Times, one of the leading global newspaper, has been selling news for almost 123 years after its incorporation in 26 August 1896. At present it has started to feel the need for innovative strategies to adopt to the changing times. The big bang of the internet into the communication scene, in the past 20 years, has seen a revolutionary change in the way people access information. With this change in trend, all business have felt a void in their strategy and have started to involve themselves through the internet. As such, New York Times is no stranger to this tidal change.
Advertising and subscription are the main bread earner for this newspaper. With stiff competition faced from The Washington Post, The Wall Street Journal on the local turf and papers such as the Financial Times, Times, Bloomberg Business Week and The Economist in the international playground the market is a fighting scene for retaining old and bringing the new from the same pool of customers. (Company, 2017)
With their adoption on online news and mobile apps, the company has extended its product from press to digital in the past decade. Their 2017 annual report shown a growth in gross revenue from 1.5 million dollars to 1.6 million. Although there seems to be growth in revenue their net income shows a decrease from $29,068 to $4,296 mainly resulting from higher cost incurred in the payment of operating cost, postretirement fund and pension settlements.
The revenue from advertisement shows a declining trend. In 2016 the company show a revenue from advertisement of $580,732 which decreased to $ 558,513 in 2017. Although decrease has been seen, it has resulted from decrease in revenue from printing. It has however shown an increase in digital advertising from $ 208,752 in 2016 to $238,291 in 2017.
Subscription and advertising has contributed to the revenue by 60% and 33% respectively with other revenue coming from licensing etc. Unexpired subscription has increased from $880,543 to $1,008,431. Their print newspaper are home-delivered to subscribers both domestically and internationally. Their strategy has been to provide free digital access to news to all print subscribing customers. Therefore only 7% of the total digital subscribers are pure paid digital subscribers. Never the less the trend of people surfing the internet for news has increased as compared to the traditional print.
The high influx of digital news has changes the traditional way of news that generally serves its customers in the morning. Digitalized news has real time coverage that gets shared through the social media and even conversation and debate undertaken by readers unlike in print. (Parry & Staff , 12) Thus is right for New York Times to increases it subscribers into the digital market as the numbers show more growth as compared to print. However this does not mean that the paper should stop its print production but instead give priority to the digital platform which has more applications and demand from readers these days.
References
Company, T. N. (2017). 2017 Annual Report. New York: The New York Times Company.
Parry, K., & Staff , W. (12, November 2006). A convergence of trends online and in print ; The tech-savvy reader who seeks headlines online and depth in print becomes more rule than exception.: [METRO Edition]. Star Tribune .
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New York Times, one of the leading global newspaper, has been selling news for almost 123 years after its incorporation in 26 August 1896. At present it has started to feel the need for innovative strategies to adopt to the changing times. The big bang of the internet into the communication scene, in the past 20 years, has seen a revolutionary change in the way people access information. With this change in trend, all business have felt a void in their strategy and have started to involve themselves through the internet. As such, New York Times is no stranger to this tidal change.
Advertising and subscription are the main bread earner for this newspaper. With stiff competition faced from The Washington Post, The Wall Street Journal on the local turf and papers such as the Financial Times, Times, Bloomberg Business Week and The Economist in the international playground the market is a fighting scene for retaining old and bringing the new from the same pool of customers. (Company, 2017)
With their adoption on online news and mobile apps, the company has extended its product from press to digital in the past decade. Their 2017 annual report shown a growth in gross revenue from 1.5 million dollars to 1.6 million. Although there seems to be growth in revenue their net income shows a decrease from $29,068 to $4,296 mainly resulting from higher cost incurred in the payment of operating cost, postretirement fund and pension settlements.
The revenue from advertisement shows a declining trend. In 2016 the company show a revenue from advertisement of $580,732 which decreased to $ 558,513 in 2017. Although decrease has been seen, it has resulted from decrease in revenue from printing. It has however shown an increase in digital advertising from $ 208,752 in 2016 to $238,291 in 2017.
Subscription and advertising has contributed to the revenue by 60% and 33% respectively with other revenue coming from licensing etc. Unexpired subscription has increased from $880,543 to $1,008,431. Their print newspaper are home-delivered to subscribers both domestically and internationally. Their strategy has been to provide free digital access to news to all print subscribing customers. Therefore only 7% of the total digital subscribers are pure paid digital subscribers. Never the less the trend of people surfing the internet for news has increased as compared to the traditional print.
The high influx of digital news has changes the traditional way of news that generally serves its customers in the morning. Digitalized news has real time coverage that gets shared through the social media and even conversation and debate undertaken by readers unlike in print. (Parry & Staff , 12) Thus is right for New York Times to increases it subscribers into the digital market as the numbers show more growth as compared to print. However this does not mean that the paper should stop its print production but instead give priority to the digital platform which has more applications and demand from readers these days.
References
Company, T. N. (2017). 2017 Annual Report. New York: The New York Times Company.
Parry, K., & Staff , W. (12, November 2006). A convergence of trends online and in print ; The tech-savvy reader who seeks headlines online and depth in print becomes more rule than exception.: [METRO Edition]. Star Tribune .