1. 1. presentsPrepared by Jordhy Ledesma, Jenny Wang, Yi Yang and William Prescott
2. 2. Agenda Industry Background Newspapers Media in general Scenarios Pros and cons Stakeholder perspectives Recommendations What Happened? Q&A
3. 3. Newspaper Industry Background
4. 4. Newspaper Readership Read Newspapers DailyPre-1929 80%60%40%Post-1960 1961-197720% Post-1994 at 9% by 2011? 19801985199019952000Sources: Robert Putnam, Bowling Alone, CBM20052010
5. 5. Newspaper Readership 2.0 Read Newspapers DailyPre-1929 The Great Depression 80%60%40%Color TV, Post-1960 VCRs20% And now smartphones! 19801985199019952000Sources: Robert Putnam, Bowling Alone, CBM20052010
6. 6. Media Industry Background
7. 7. Media Fragmentation, 1960s to 2010s
8. 8. Scenarios
9. 9. Possible Scenarios Scenario 1 Keep the Paper and Remain Free for the Web Scenario 2 Keep the Paper and Charge for the Web Scenario 3 Ditch the Paper and Charge for the Web
10. 10. How can The NY Times Respond? 1.Declining readership2.Exponentially increased competition3.Low-tech employees and contributors4.Problems across the board: in news, travel guides, classifieds, sports and editorials5.Loss of investor confidence6.Increasing paper and production costs7.Less and less advertisers
11. 11. Scenario 1 Do NothingKeep the Paper and Remain Free for the Web PROS Attract as many readers as possible Waiting for a better business model Retain existing paper readers Keep competitiveness to other free news channelsCONS High cost bottom line impact Lose first mover advantage Decreasing financials
12. 12. Scenario 2 - The Middle WayKeep the Paper and Charge for the Web PROS Accommodate new way of reading Improve the financials Expand to global business Retain existing consumersCONS Pay for the web: Challenge to change consumer behavior Cannibalization of readers and advertisers Lose strategy and resource focus
13. 13. Rupert Murdoch on Paywalls, Print Media and the iPad
14. 14. Scenario 3 All DigitalDitch the Paper and Charge for the Web PROS More people rely on digital news sources Better advertising data Wider potential audience Better for the environmentCONS Loss of paper only readers Loss of public notice advertisement revenue Greater competition in the digital arena
15. 15. Jason Calacanis: NY Times vs Google
16. 16. What Happened?
17. 17. What Happened to the Financials?http://markets.on.nytimes.com/research/stocks/tools/analysis_tools.asp
18. 18. Paywall and R&D Changes
19. 19. NY Times Research Labs
20. 20. Conclusions Were in the listening era fornewspapers. They need to listen to customers, technologists and analysts to adjust their business models Industry-wide efforts to change the mostlikely scenario are required NY Times communication abilities arecritical to secure investor goodwill, persuade competitors and allies and engage customers
21. 21. Q&A
22. 22. References The U.S. Newspaper Industry in Transition Suzanne M. Kirchhoff Analyst in Industrial Organization and Business September 2010 State of the Media 2010 U.S. Audiences and Devices The Nielsen Company Exploiting the old while exploring the new: Aworkshop on improving newspaper performance John F. Greenman Alabama Press Association July 2008