Kim Jauch
Case Analysis – The New York Times Paywall
Situation
The New York Times, as well as every other newspaper and magazine around the world, is struggling to find the best way to transition from traditional print to the digital space while still maintaining a profitable business. The current solution for the largest local metropolitan newspaper in the United States is a paywall, which requires readers of online content to pay for a digital subscription in order to have access to the site after a fixed monthly allowance of 20 articles. However, this pay metered method has been tried by the most popular American newspaper website before and the question is whether or not this strategy can help The Times evolve with the ever-changing technologies and continue to live up to its motto: All the News That’s Fit to Print.
SWOT
External Environment Assessment
The newspaper industry in the United States is in major need of a transformation. Over the past decade, circulation numbers have been declining for weekday and weekend editions according to the Newspaper Association of America [Exhibit 5]. The accessibility and popularity of the internet is changing the way the world consumes media. The transition from print to digital has provided a challenge for media companies, with The New York Times being no exception. Revenue streams from print newspapers are mainly based on advertising revenue [75% Total: 42% retail, 25% classified, 8% national – Table A]. However, with readership moving to online consumption, a gap is present between past and present advertising revenues. For one the new medium is more economical while also being more customizable for various target markets of consumers, such as those reading the headlines or the sports page. In addition, retail companies, such as car manufacturers, are more likely to use their own websites as a vehicle and classifieds are more likely to be posted on various free websites such as