New York Times Paywall Harvard Case Solution & Analysis


According to the chairman of the Paywall, the goal of the company was to build the digital subscription base and develop a new robust consumer revenue stream, while maintaining its business profits in a long run. The reason to introduce the digital advertising business is that the people are more inclined towards online channels, especially youth, which are also becoming a source of consuming information. The NYT wants to increase its future revenue for the paper and to recover its losses from print revenue, but the revenue generated from the digital advertising is not sufficient to replace the loss of print revenue.

The New York Times became restricted because most of the content is protected behind the Paywall.A user who exceeds the limit more than 20 articles per month, were restricted to pay for either digital or print subscription. The goal of the New York Times in adding Paywall is money. The print advertising will never be completely replaced, the digital companies just recognize to reinvent their marketplace in digital advertising. Besides that, there is a lack of interest of the young generation towards the consumption of print newspaper.Youth is more digitally oriented and want easy-to-use interface.

The New York Times Paywall failed in first attempt because the company launched the online advertising in the infantile age of digital media or too early in the Internet era. In the last decade, mobile technology had not become a source of consumption. The people were not aware about such technology and the qualities of content writing were not up to the mark.

According to the research, the 55% of the readers around use mobile and computer technology to read the New York Times because it is easy-to-use interface. On the other hand, 29% of the consumers prefer to read the newspaper, which is causing a major downfall in the company’s revenue. The Paywall appears to work on the monetary level as well. The overall revenue of the company has increased in eight out of ten quarters since the introduction. However, some people argue that the Times could be better off without the Paywall.

The basic motive of the New York Times is to enhance society by creating and distributing high quality of newspapers, entertainment and information. This is also the reason the company is seeking new ways to increase revenue by restructuring and recover the loss of the print newspaper or magazine. Good analytical headlines, content and brand reputation benefit the organizations in the long run. The NYT has significant advantages which are gifted editorial staff, strong brand reputation andeffective journalists. The resources of the company should be fairly utilized and capabilities of the employees must be considered.

 The current investment of the company includes, continue to use social media and charge subscribers for the in-depth internet access, expand the digital market in the other growing countries, shift the focus of the younger generation on this platform and look ways to merge with media giants such as Apple, YouTube, Google or BBC. The purpose of diverting the youth’s mind towards digital advertising is that the majority of the youth as a lack of interest in reading print newspaper. So the youth generation is unaware of the situation occurring in the country or around the world. In Dec 2011, the circulation of the Times through the subscription grew approximately 390,000 that increase the total number of subscribers. Around 390,000 subscribers are willing to pay for the content within 9 months of its introduction.

New York Times Paywall Case Solution

Recently, the newspapers and magazine companies cut advertising budgets and preferences move towards the digital media. People can easily obtain free news information online. Within the first years, Paywall provided an extra stream to generate revenue besides advertising as it provides $81 million revenue. In the beginning of July 2014, The Magazines new are archived articles free for everyone, which attract more customers to read the articles and charging its most enthusiastic readers through a subscription plan.

Competitors such as the Wall Street Journal and The Financial Times do not provide the opportunity of free content for casual viewers, so in this matter the Times has a competitive edge in making brand loyal customers. In 2013, the company has 700,000+ paid digital subscribers. There are still large and the number of people willing to pay for the news media company’s digital content...................

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