Along with other newspapers, the well-known New York Times has suffered losses over the years. However, in an unexpected turn of events, the paper raised its revenue for the first time in three years. According to New York Times beats revenue, earnings estimates, this “better than expected” turn of events is due to a stabilizing trend in advertising. The use of digital ads increased, and revenue from this source rose 21 percent. This helped balance the “6 percent decline in print advertising.” This new information makes one wonder if readership of “paper based” media sources is increasing in popularity. Or, is this simply a random event for the New York Times?
The ability of mature, paper-based media to continue to improve its revenue lies in its capacity to evolve its platform. As indicated by New York Times Revenue Increases on Digital Ad Rise, “newspaper print advertising sales fell 11 percent.” Looking at people with their Nooks, iPads, iPhones and other portable information devices, it is easy to see the growing trend toward paperless reading. Yet, The New York Times has a plan. In January, they plan on introducing an “online subscription model” that requires visitors to pay for access.
Personally, I would not pay for an online subscription for news that I can find in a million other places for free. Yet, if the subscription costs less than the print subscription, then the NY Times may be able to increase readership this way. Of course, they can continue to make money off of online ad revenue, and should consider doing more online classified ads.
Then, of course, there is the free online news revolution. Although some print journalists do not like websites like Associated Content, there are more and more news outlets like AC popping up. With the ever-expanding availability of up-to-the-minute news, there is tough competition. While many still enjoy the Sunday paper and a cup of joe, It seems it is only a matter of time before everything goes digital. According to ‘Print Newspapers to Survive Up to a Decade, Chicago Sun-Times’ Tyree Says, James Tyree, chief executive of investment firm Mesirow Financial Inc, says that newspapers need to “evolve” in order to stay in-business. The Chicago Sun-Times has already seen what happens when a print paper does not “evolve.” The Sun Times “filed for bankruptcy protection in March 2009 with $801 million in debt.” Tyree was involved in the buyout of this paper. He said that they won’t be charging for online access because people will simply go to the Tribune, a competing newspaper.
Indeed, this momentary victory for the New York Times is encouraging for other print media. Yet, in order to prevent the same fate as the Sun Times, print newspapers will have to inspire, engage and reinvent themselves.
Sources:
Jennifer Saba New York Times beats revenue, earnings estimates, rueters.com
Brett Pulley New York Times Revenue Increases on Digital Ad Rise businessweek.com
Greg Bensinger Print Newspapers to Survive Up to a Decade, Chicago Sun-Times’ Tyree Says Bloomberg.com
