Can New York Times Survive? How?

1. New York Times Mission Statement for Survival: By leveraging our global
brand recognition and rich editorial lineage and expertise, NYT aims to become
an interactive information delivery company by creatively combining advertising,
circulation and social media.
Of Michael Porter’s five forces model above, the following two forces are most
critical to NYT at this point in time:
1. Buyer Power: Consumers increasingly get news and information from a
variety of Web sources such as Google News, Yahoo News, CNN.com,
Huffington Post, and so advertisers pay much lower rates online than they
do in print. Especially younger consumers aren’t too brand loyal and due
to constant switching of eyeballs across various media and their lower
propensity to shop online, the online ad rates are typically only 5-10% of
the print ads. Thus while NYT’s subscription revenues may have increased
2% in 2008, its ad revenues fell 13% as a function of this “lack of
stickiness” of consumers and also the recession. This lack of consumer
loyalty and resulting buyer power is a huge threat for NYT going forward.
2. Threat of Substitute Products or Services, and Threat of Potential
Entrants: Both of these threats maybe combined into one as related to
the media industry because of the convergence of technology and cross-
over of applications. The rise of low-cost ad consolidators, a surplus of
online ad inventory, political blogs and social media with their captive
audience pose a serious threat to NYT and the traditional media industry.
However, NYT’s global brand recognition, editorial skill and rich content
provide a relative cushion for the time being to re-orient the business
strategy.
Now which strategy to adopt is a key question? Expanding the digital content
and advertising are obvious solutions, and the management is already working
on that. But after analyzing the various trends and forces affecting NYT and its
industry in general, perhaps it makes sense to:
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2. 1. Charge online readers for NYT’s insightful editorials and research pieces
per use the way FT and WSJ currently charge their online readers.
2. Collaborate with i-Tunes for distribution and story downloads for $0.99 or
less per article.
3. Work with leading newspapers around the world to create an online news
portal competing with http://www.world-newspapers.com in many
languages to take advantage of globalization and reputable content. This
can broaden the ad base and help advertisers reach a global audience
through one well-known portal.
4. Not out-source reporting to third parties such as AP, Reuters and
Bloomberg as other media companies are looking to do. Truthful and
insightful reporters and editors are NYT strength, and if outsourced, NYT
will give away its most precious asset.
5. For its supplement sections such as Arts & Leisure, Fashion & Shopping,
Food & Wine, and Real Estate, respectively, NYT could utilize social media
to create interactive blogs, virtual walk-throughs and online lookbooks for
more targeted advertising such as what www.polyvore.com has created.
The two article summaries below illustrate how Ralph Lauren and
Burberry are using social media to reach their audience in
collaboration with magazines and retailers. One word of caution here
is that NYT should be careful not to jeopardize its editorial integrity.
Lauren by Ralph Lauren Show Set For the Web
(Source: Women’s Wear Daily, March 17, 2010)
NEW YORK — “Polo Ralph Lauren is delving deeper into technology and social
media for its latest runway outing. The event will mark the second time the
company ventures online to present a new collection after Rugby’s virtual show in
December, and like Rugby, it will feature footage of real models on the runway in
spring looks customers can order immediately.
However, Polo this time has injected a social media twist. Mimicking the front row of
a real fashion show, the Lauren online event will feature live commentary about
each of the 21 looks from several Hearst Magazines editors. Adding an interactive
touch, Lauren shoppers can directly send style questions to these editors, which
they will answer for four days following today’s show”. …………………………… “The
ralphlauren.com page that will display the online show will feature links to each
editor’s video commentary, and viewers will be able to toggle between them to
listen to their opinions on each look.
“Editors in general offer a fashion credibility,” David Lauren said. “This was a
wonderful opportunity to work with the people who can give an objective comment
on our site. That was our goal.” ………………………………
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3. “Hearst Magazines executive vice president, chief marketing officer and publishing
director Michael Clinton found the technological and interactive elements of the
concept appealing. “It’s the convergence of a lot of innovation that is going on in the
market,” Clinton said. “We have always looked at unlocking the DNA of our
magazine brands, and our editors represent our brands. To show how we can take
consumers right to the point of purchase is a beautiful thing.” But what if the
editors, who were filmed discussing trends in their offices, didn’t like one or more of
the looks? Lauren stressed the editors were asked to be objective, with commentary
“that is real and honest. We welcome the dialogue, and our customer wants
something that is truthful and honest.
“They are not here to promote us, but here to be a part of the dialogue they would
be having with their own readers,” he added.”
Photo By Courtesy Photo
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4. 25 February, 2010 by Imran Amed, Editor
Digital Scorecard | Burberry 3D Live Stream
Burberry Autumn/Winter 2010 | Source: Burberry
LONDON, United Kingdom — “It was billed as the world’s first truly global fashion
show, taking place on the penultimate day of London Fashion Week, beamed live in 3D
to five global cities, and streamed to the rest of the world via 73 websites, including
Vogue, Grazia and CNN, which all picked up the video feed in a global simulcast. It was
undoubtedly the most widely distributed fashion show a luxury brand has ever staged,
potentially reaching an audience of more than 100 million users, according to Burberry
CEO Angela Ahrendts.” ………………………………………………………………………
“During the show Burberry appeared as one of the top ten trending topics on Twitter,
………….The words “Amazing” and “Love” appeared over and over again, with viewers
sometimes shouting out their city of origin — Montreal, Sao Paolo, Los Angeles —
underscoring the truly global nature of the event. The comments were 100% positive or
neutral.”…………….
“Most potential? The ability to buy the covetable shearing jackets straight off the
runway for 72 hours after the show was a master stroke. ….. By limiting sales to a 72
hour window, Burberry also ensured sales opportunities for its wholesale partners down
the road, while creating a sense of urgency for consumers to purchase right away if
they so choose. Best of all, with the insights gleaned from which products sold fastest
on the internet directly after the show, Burberry will have real consumer data upon
which to base orders for normal delivery to its stores around the world — every
merchandiser’s dream.” …………
“What’s missing? Greater authenticity. While maintaining the spirit and standards of the
Burberry brand must have been of paramount importance, so is providing an authentic
and real experience for all the participants. …….And if Burberry was indeed filtering live
comments from their internet viewers to ensure only positive feedback appeared, in my
eyes this also takes away from the authenticity of the experience.”
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