New York Times Paywall Harvard Case Solution & Analysis

Situation Analysis

According to the current situation, the newspaper or print media industry is facing a declining trend due to the shift in technology and changing behaviors of people. The people are more inclined towards online channels which have also become the major source of consuming information. The readers of the New York Times are also changing and according to a research around 55% of the readers used computers or mobile phones in order to read New York Times.

On the other hand, only 29% consumers prefer to read newspapers and it is the overall trend in the industry, which is causing a major decline in newspaper consumption. The readers are declining which is why the print media is under real threat as the advertisers will be less determined to seek print advertisement. This will eventually result in a decline in the prices and will eventually account for losses, as the revenues will also decline rapidly.

On the other hand, digital or online advertising is an option but is not considered as lucrative as print advertising. The reason for this perception is the effectiveness of online advertising which is very low and it only contributes very less in terms of revenue. In the last decade the advertising revenues for print media are in a constant decline and currently the revenues are accounted to be the lowest.

Besides that a concerning point is the lack of interest of the younger generation towards newspaper and three out of ten people below the age of 25 do not consume or read newspapers. After viewing all the above scenarios and the concerning points, The New York Times launched Paywall with the objective to increase the revenues and generate money. Paywall provides an extra stream to generate revenues besides advertising. As advertising revenues are on the verge of decline, therefore Paywall provided the organization with an opportunity to generate revenues and strengthen their balance sheet.

Besides this the objective of the New York Timesis to step into the digital world by creating a digital platform which is also the need of modern times and the current scenario. The industry is on the verge of decline, but getting replaced completely is unlikely for print advertising. However, the companies in the industry are of the growing importance of the digital marketplace and therefore are striving to reinvent themselves.Paywall is although a major stream of revenue for the company, but it has failedin the previous attempts.

In order to analyze the opportunity for Paywall, it is important to analyze the previous failures first to highlight the weaknesses in the design. The reason for the first failure is the timing of the launch as the introduction of the service was not appropriate according to the conditions of that era.

Internet was not widely accepted and the easy-to-use interface was not developed and also the mobile technology was not readily available. Therefore the consumption for the readers was not easy and the concept was not developed which resulted in the failure. However, the second failure resulted due to the quality of the content which was questionable. The stories or the content was not exposed to many people and the readers were also very less that resulted in unsatisfied writers.

However, the issues that were apparent in the past are no longer present and the current scenario is much more flexible and acceptable. The Wall Street Journal is in the same category and is offering more specialized content, but at the same end New York Times is also in the same league with the quality that it offers in its content as well. New York Times is on par with the quality of the Wall Street Journal that helped in establishing a firm and successful base. Playerslike the Washington Post are aiming to build brand equity, which is their main objective and for that offering free content is a major source as it helps in attracting more people.

new york times paywall Case Solution

However, the New York Times doesn’t have to indulge in any such activity and opted for a subscription fee because the brand equity is established with a variety of people pay a visit to their website daily. On the other hand, offering 20 free articles is an activity that will be time tested and may prove to be effective in the future. However, the question regarding the selection of the number is not justified. Players like the Economist or Wall Street also use the same idea, but their numbers are far less than that of New York Times...................

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