Strategic Management


Topic: The New York Times pay digital paper will result in a decline in advertising revenues.


The New York Times has one of the highest online readerships in print journalism in the world. With over thirty million readers accessing their digital paper that is completely free. The global financial crises saw the paper weather financial troubles that were experienced by most businesses around the globe. The paper had to lay down some of its workforce due to low revenues. One of the strategies that the paper has devised to increase their revenue is turning their digital paper into a pay model. This is a bold decision to change its digital paper model from a complete free access model that it has been operating into a pay system model (Jeremy 2011). This pay model by the paper is not a new system to the New York Times, between the year 2005 and 2007 the paper had a pilot pay model for some of its selected popular columns. The year 2005-2007 (Time Select) pay system was discontinued due to limited leadership since only about two hundred and twenty seven thousand readers had subscribed to the digital paper out of the thirty million readers who accesses the free digital paper monthly. By the time the TimeSelect pay subscription digital paper was discontinued it was raking in ten million dollars in revenues and charging a monthly subscription charge of forty nine dollars and ninety five cents.

Out of the paper's advertising revenues one quarter of the annual revenues are gained from its free digital paper.

Advertisers usually are easily convinced to advertise in mediums with given huge consumer reach. The New York time with more than thirty million monthly potential consumers for advertised product has therefore been an easy choice .however given that the paper tried charging its customers in 2005-2007 periods and the scheme failed then the paper risks this advantage that it has over its rivals. This is so simply because in the modern digital world access news has become very easy and cheaper from other numerous sources available in the digital world. Companies such as Google though it's not a media company has been availing its users news from so many sources through such platform as you tube among other free websites that consumers can be updated on the daily happenings from in real-time. It is therefore possible that among the many millions who have free access to New York Times website will not pay for products that they can obtain for free from other numerous free sources.

Therefore with the Google free model already in existence that is available to so many would be consumers in the world .and given that it is capable of providing individuals with limitless information and news sources choices from all corners of the globe pay to access news may not be a choice that a lot of people would choose (Carr 2011) .Given such factors and considering that The New York Times 2005-2007pay system  was discontinued due to lower subscriber levels ,the new pay system faces similar lower levels of subscribers challenges that were experienced in the 2005-2007 period. This implies therefore that advertisers would have to move to forums where they can be availed many potential consumers .therefore the pay system that was launched with the aim of increasing the revenues for the paper may instead of reaching its objectives loose the paper advertising revenues. This would result due to loose of some or a part of their thirty million readers who visit their site monthly for its free access.


In a world where access to information is increasingly becoming easier and cheaper charging consumers to access information that they can easily gain access to through other forums can effect the paper negatively .In that such a scheme can loose the paper a large part of their readers who are the main attraction for the advertisers .they choose the paper to advertise their products for its potential to give access to millions of potential consumers.