The New York Times Paywall

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MK610 Marketing Management The New York Times Paywall Yun-Yi Chen 10.22.2013 I - Brief Case Situation Facing significant challenges with both subscription and advertising revenues declining, The New York Times (The Times) management designed a new paywall and chose a metered system that allowed users to read up to 20 articles a month without paying. Arthur Sulzberger and some experts in the industry considered The Times paywall a success. However, many commentators were highly skeptical about its pricing. Could paywall be a savior for the declining newspaper industry? II - Critical Issues First of all, the rise of the Internet provided new opportunities for the newspaper industry. However, it posed serious challenges as well. A significant problem that The Times faced was advertising revenue. The new source of revenue through online advertising did not compensate for the revenue decline from print. Also, online advertising rates were significantly lower than the print advertising rates. Another major concern was the potential drop in website traffic because a loss of readers means a loss of revenue. Last but not least, would the paywall provide a sustainable business model for The Times? III - Analysis Context Analysis In this technological age, the introduction of high-technology products, such as the iPad, smartphones and tablets, allow people to consume news in a different way and share them easily with other people. A survey by the Reynolds Journalism Institute -1- revealed that 99% of iPad users consume news on their devices. However, if consumers use these devices to access not in-depth news but quick news updates, it could be a serious concern because no one will pay for quick news updates. Customer Analysis Generally speaking, younger people are more likely to access online news more than print news because they spend more time online and on

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