The New York Times Paywall is a case study based on the business transition from the traditional to digital shift of e-newspapers. The launch of digital devices favoured the growth of The Times as well as the advantages of accessibility had escalated its demands and the viewership. They adopted the Paywall strategy for additional revenue generation through subscription plans. However, the dilemma was for the long term sustenance of the latest The New York Times business model.
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The New York Times Paywall Case Study
1. The New York Times Paywall
By: TANUSHREE BOSE
PGDM-HR
UID No.:2019-1805-0001-0041.
CASE STUDY PRESENTATION
2. The New York Times Paywall
01
02
03
04
Case Synopsis
Case Problem or Issues
Case Analysis & Inferences
Conclusion & Recommendation
3. 01. Case Synopsis
Metered
system
of
Paywall
Based on traffic generation on
Search Engines (Google) & Social
Media (Facebook & Twitter).
Dilemma about “Leaky Wall” or
“Bulletproof” paywall Strategy
Traditional newspapers &
bloggers criticized the paywall
strategy & believed in free
content access.
Others skeptical about sustaining
paywall strategy
Compensate for print advertising
revenues.
Online advertising Revenue
Paid subscriptions & online
advertising revenue.
Aimed for revenue generation
strategies through digital technology
.
Paywall strategy involved
Metered System
A shift from Traditional Newspaper
revenue model to digital model.
Long term business model
sustenance
Readers exceed 20 articles were
led to a web page for paid
subscription.
4. 02. Case Problem
Declined Revenue
Web Traffic & Online
Advertising
Web Traffic Declined by
(66%) for The Times of
London
The News Media Group
Print advertising revenue
declined by 7.8%.
Increased by 5.3%
Digital Advertising Revenue
2011 (Q4)
Increase in digital subscription base (2012)
Increase in consumer revenue stream
6. Is the Paywall working?
Price for Digital
Subscription
$4.00 per week
Believed that free website shall be
accessible to all.
The Washington Post resisted Paywall
Avid readers / well-off people would be likely opt
for paywall.
Strategy was dependent on the willingness to pay
Launched Introductory offer of 99 Cents for 4 weeks.
Slow down in Subscriber growth
Viewed as the Paywall strategy that
shall be doomed.
Bloggers & Traditional media had critical approach
The Home page
section & front
page was
unrestricted.
Readers exceed
20 articles were
led to a web page
for paid
subscription.
The i-pads /
i-phone users
were provided
with free Top
News, further
required
subscription plan.
Paywall: Metered & Device-Specific Strategy
7. Paywall Strategies
Charge the consumers based on the device
medium used. (For i-phones & i-pads Top News
was free, rest was based on the Paywall).
2. Device-Specific Offer
The Times Launched the Company websites &
charged for $35 per month overseas.
No registration fee & advertiser supported model.
First Experiment (1996)
Accommodated users from different
traffic generators.
Readers from Google were limited to
5 articles per day & over 20 monthly
allotted articles.
Social Media sites (Facebook &
Twitter) had no limits.
Leaky Wall
Selective pricing strategy for columnists of $45.95
per year.
Free access to new & other content in The Times
website.
Discounts to college students & other readers.
Free for print subscribers.
The Second Experiment-Times Select
Average price paid by digital
subscribers-$4.00 per week
Pricing
1. Metered System: Free access to specified number of
articles or pages & purchase subscription plan for other
contents. (Limited to free 20 articles)
New Paywall Design Strategy
8. Pressurized Newspaper Industry
Circulation
of
newspapers
Revenue
Sources
decline
Others Shifted
to online
mode
Goal of The Times for
introducing Paywall
Detroit Free Press
Declined in
weekdays &
weekends
Subscriptions,
Retail &
Classified
advertising.
Free delivery
of online
content led to
increased
online traffic of
readers.
Online advertising revenue
could not compensate decline
in the print revenue decline.
Limited the home delivery
circulation on Weekdays (Sunday)
when there was high advertising.
Mitigate the fall in the online reader traffic (2.79 Mn to 1.61 Mn)
Ann Arbor News
Shut down print operation &
shifted to online content
circulation.
9. Managing the
Digital
Transition
E-newspapers provides selective
& exclusive content based on the
subscription plans.
The advent of Monster.com took
over the job section of the
newspaper.
The classified portion was taken
away by Craigslist.
Creation of Company websites
tarnished the advertising section
of the printed newspapers (Ford,
General Motors).
Printed Newspapers shifted
towards delivery of online content
for free.
E- NewspapersThe Emerging Wave of Internet
Served as a medium of information & transition
of business.
Traditional Printed Newspapers
There is a vast content of local
stories, national, international
reports news analysis, editorials,
opinion columns, classified
advertising, etc.
Launch of i-Pads
Provided digital platform for e-newspapers.
Increased e-newspaper consumption due
to best user experience of i-Pad.
10. 04. Case Conclusion & Recommendation
Pragmatic digital shift
from traditional
newspapers.
The Times can struggle
initially for online
advertising revenue but,
can prosper in the long-
run.
Easy accessibility in
digital devices to the
mass is an advantage for
booming business.
Advantage for students
for Top News content &
discounts.
Should continue both
Traditional & Digital
circulation of newspapers.
Paywall is a benefit for the
readers who need selective
& top news content.
Does not include Editorial,
opinion, local stories or
Cartoon sections.