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The New York Times Paywall Case Study
The document analyzes the paywall strategy of The New York Times, focusing on its metered system that limits free access to articles while encouraging subscriptions. It addresses the challenges faced due to declining web traffic and advertising revenues, alongside criticisms from traditional media regarding the paywall approach. The conclusion suggests that while the transition is difficult, The Times could ultimately succeed through digital accessibility and sustained revenue strategies.
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The New York Times Paywall Case Study
- 1. The New YorkTimes Paywall By: TANUSHREE BOSE PGDM-HR UID No.:2019-1805-0001-0041. CASE STUDY PRESENTATION
- 2. The New YorkTimes Paywall 01 02 03 04 Case Synopsis Case Problem or Issues Case Analysis & Inferences Conclusion & Recommendation
- 3. 01. Case Synopsis Metered system of Paywall Basedon 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 DeclinedRevenue 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
- 5. 03. Case Analysis& Inferences
- 6. Is the Paywallworking? 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 theconsumers 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 OthersShifted 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-newspapersprovides 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.
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