New York Times new digital subscription plans, March 2011

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This slide deck, distributed to members of the media on March 17, 2011 by The New York Times, lays out the NYT's plans for charging for access to nytimes.com and its mobile apps.

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New York Times new digital subscription plans, March 2011

  1. 1. March 2011
  2. 2. The New York Times Difference <ul><li>Award-winning journalism attracts millions of print, digital, Web and mobile readers. </li></ul><ul><li>Premium advertising base with high percentage of national advertisers. </li></ul><ul><li>Comprehensive multiplatform strategy. </li></ul><ul><li>Diversified revenue mix. </li></ul><ul><li>NYTimes.com’s premium digital presence driving growth. </li></ul>
  3. 3. Quality Journalism with a Compelling Reach <ul><li>Readers and advertisers are very loyal to The New York Times. They </li></ul><ul><li>know it is a great newspaper, a great Web site and a great advertising vehicle. </li></ul><ul><li>Approximately 80% of The New York Times’s top 100 print advertisers (ranked by spending) are also advertising on the Web site. </li></ul><ul><li>Strategic focus on delivering high-quality journalism that engages audiences across multiple platforms. </li></ul><ul><li>NYTimes.com attracts an impressive worldwide audience of 48.5 million monthly unique visitors. </li></ul><ul><li>New York Times print circulation: </li></ul><ul><ul><li>876,638 daily </li></ul></ul><ul><ul><li>1.35 million Sunday </li></ul></ul>
  4. 4. A Leader in the Digital News Community <ul><li>The Times is distributed across multiple platforms, from e-readers, </li></ul><ul><li>such as the Barnes & Noble Nook, the Sony Reader and the Amazon </li></ul><ul><li>Kindle, to a whole suite of applications on the mobile Web, including </li></ul><ul><li>apps for the iPad, iPhone, BlackBerry, Palm Pre and Android. </li></ul><ul><li>iPad </li></ul><ul><li>In October The Times launched its expanded iPad app, which offers more than 25 sections of Times content, including videos and photos. </li></ul><ul><li>To date, there have been more than 1.6 million downloads of The Times’s iPad app. </li></ul><ul><li>The Times has seen strong interest in iPad sponsorship programs from a wide range of advertisers. </li></ul><ul><li>e-Readers </li></ul><ul><li>The Times is available on the Amazon Kindle, Barnes & Noble Nook, Sony Reader and Kobo Reader. </li></ul><ul><li>The Times has generally been the top-selling newspaper on the Kindle. </li></ul>
  5. 5. A Leader in the Digital News Community <ul><li>Mobile Web </li></ul><ul><li>New York Times mobile Web applications generated almost 111 million page views in February. </li></ul><ul><li>The Times iPhone news app has been downloaded 6.2 million times since its launch in July 2008. </li></ul><ul><li>In December, The Times launched an app for the Google Chrome Store, already has more than 190,000 users and has an average rating of 4.5 out of 5 from more than 800 reviewers. </li></ul><ul><li>Social Media </li></ul><ul><li>The Times’s Facebook page has almost 1.2 million fans. </li></ul><ul><li>The Times’s main Twitter account has more than 3 million followers. </li></ul>
  6. 6. Launching a Pay Model for NYTimes.com <ul><li>The Times is launching digital subscriptions using a model similar to the Financial Times. </li></ul><ul><li>This model will: </li></ul><ul><ul><li>Provide the flexibility to keep an appropriate ratio of free to paid content while keeping The Times’s journalism accessible to the open Web. </li></ul></ul><ul><ul><li>Allow The Times to develop an alternative revenue stream while enabling it to preserve its robust digital advertising business. </li></ul></ul><ul><ul><li>Enable The Times to continue to invest in creating high-quality journalism to maintain its presence as a premier global news source. </li></ul></ul>
  7. 7. How it Works <ul><li>Users will receive free access to a set number of articles per month on NYTimes.com. All smartphone and tablet apps will also feature some free content. </li></ul><ul><li>Users who want unlimited access may choose from several digital subscription packages based on the devices and platforms they use most often. Unlimited access to NYTimes.com will be included as part of all digital packages.* </li></ul><ul><li>All home delivery subscribers will receive free access to NYTimes.com and all sections of The Times’s smartphone and tablet apps. </li></ul>*Mobile apps are not supported on all devices. Does not include e-reader editions, Premium Crosswords or The New York Times Crosswords apps. Other restrictions apply.
  8. 8. What counts and what doesn’t? <ul><li>Any article, video, slideshow or interactive counts as one piece of content. </li></ul><ul><li>Readers get unlimited access to the NYTimes.com homepage, section fronts and blog fronts, as well as reader contributions, listings and NYTimes.com search results pages. </li></ul><ul><li>Readers who are referred to Times content via links from blogs, social media and search will be able to access that content. Those articles will count toward reading limits, but they will not trigger the gate, even if the user has reached his monthly limit. For some search engines, users will have a daily limit of free links to Times articles. </li></ul>
  9. 9. Benefits to Readers <ul><li>The pay model will strengthen The Times’s ability to provide high-quality journalism to readers across the world and on any platform. </li></ul><ul><li>The Times has chosen a flexible model that gives readers an option: </li></ul><ul><ul><li>Casual visitors to The Times can read a generous amount of content for free each month. </li></ul></ul><ul><ul><li>Readers who regularly depend on The Times for their news and opinion will be encouraged to purchase a digital subscription. Three digital subscription packages will allow the user to choose from a variety of devices to access The Times (computer, smartphone, tablet). </li></ul></ul><ul><li>The change will primarily affect those who are heavy consumers of content on NYTimes.com and on various digital products. </li></ul>
  10. 10. Benefits to Advertisers <ul><li>This approach will enable The Times to maintain a balance between its significant reach and its robust digital advertising business. </li></ul><ul><li>Advertisers will be able to reach engaged users who have demonstrated their affinity for The Times by signing up for a subscription. </li></ul><ul><li>This model will enable The Times to continue to attract a large, desirable audience that our advertisers know and appreciate. </li></ul><ul><li>The Times will continue its focus on producing innovative advertising products that balance a great user experience with a great advertiser experience. </li></ul>
  11. 11. Benefits to Company <ul><li>Digital subscription revenue stream will allow The Times to further monetize its strong online readership. </li></ul><ul><li>This model will allow The Times to create a second online revenue stream while enabling it to preserve its robust advertising business. </li></ul><ul><li>The Times’s pay model and the accompanying pay strategy across mobile and tablet applications will allow us to offer cross-platform packages to maintain a seamless brand experience for users. </li></ul><ul><li>The Times will continue to invest and lead the industry in producing award-winning content that is worth paying for. </li></ul>
  12. 12. <ul><li>The New York Times Brand: </li></ul><ul><li>Quality Content, Coveted Readers and Advertising Reach </li></ul>
  13. 13. New York Times Readers: Advertisers Covet <ul><li>Advertisers pay a premium to have their ads run alongside our quality </li></ul><ul><li>content and reach the influential audience of The New York Times. </li></ul><ul><li>NYTimes.com is #1 among WSJ.com, Forbes.com and CNNMoney.com in reaching “Corporate C-Level Executives” and “Business Decision-Makers” online. </li></ul><ul><li>Loyal – Core New York Times newspaper subscriptions of 2+ years are more than 800,000, up from 650,000 in 2000. </li></ul><ul><li>New York Times readers are significantly more upscale than the U.S. adult population in a range of demographics, including high education, white-collar jobs, high household and personal incomes, and expensive homes. </li></ul><ul><li>Influential – The New York Times is #1 in reaching U.S. opinion leaders in both print (weekday) and online.  </li></ul>
  14. 14. New York Times Readers: Engaged, Affluent, Female <ul><li>Our readers choose every day to access our content in print and </li></ul><ul><li>online. New York Times readers are: </li></ul><ul><li>Engaged – Median time spent by our readers with the weekday New York Times is 36 minutes and 53 minutes reading the Sunday New York Times. 61 percent of Sunday Times readers indicate they are interested in the advertising. </li></ul><ul><ul><li>Compared with nine leading lifestyle and business titles, the Sunday Times ranks #1 in percentage of readers who rank it as a favorite and percentage of readers who spend nearly an hour with the issue. </li></ul></ul><ul><li>Affluent - Median household income for a reader of the Sunday New York Times is $112,154. Median individually earned income for a reader of the Sunday Times is $56,421. </li></ul><ul><li>Female – The New York Times delivers an audience of 1.5 million  affluent women. This represents 30% of total New York Times weekday and Sunday readers. </li></ul>
  15. 15. Unsurpassed in Advertising Innovation <ul><li>With the growing number of platforms where readers demand our content, the Company remains aggressive in advertising product innovation, building premier positions across all modes of delivery. </li></ul><ul><li>NYTimes.com continues to be a trailblazer in brand advertising. The site has made bold moves on the advertising front, particularly on the home page, where we balance a great user experience with a great advertiser experience. </li></ul><ul><li>We are seeing a very wide range of advertisers that are committing to the iPad app, from luxury to technology to entertainment. We have worked closely with those clients to deliver innovative, engaging advertising that readers react to and remember. </li></ul>
  16. 16. Editorial Strength <ul><li>The New York Times is widely quoted, and often hotly debated. It is held by its readers to the highest of standards and continues to be regarded as the nation’s preeminent newspaper. </li></ul><ul><li>The Times’s global news staff covers the wide range of our readers’ interests, from world, national and New York issues to business, culture, science, religion, style, food, health and homes. </li></ul>
  17. 17. Consistently Recognized for Outstanding Journalism <ul><li>The New York Times has earned 104 Pulitzer Prizes, far more than any other newspaper. </li></ul><ul><li>In 2010, Times business writers were honored with four Gerald Loeb Awards. The awards honor journalists who make significant contributions to the understanding of business, finance and the economy. </li></ul><ul><li>Also in 2010, The Times was honored with an impressive 13 awards from the Society of American Business Editors & Writers (SABEW) Best in Business journalism contest, which honors the very best of business journalism produced at newspapers, magazines and Web sites. </li></ul><ul><li>NYTimes.com was honored with five 2010 Webby Awards and three Online Journalism awards. </li></ul><ul><li>NYTimes.com ranked #1 in OMMA’s June 2010 list of the 100 Most Important Online Publishers. OMMA reports that “the NYTimes.com stands out as the standard bearer of quality journalism, informing its readers and feeding countless derivative reports throughout the blogosphere.” </li></ul>
  18. 18. Investment in Reporting <ul><li>The New York Times has approximately 1,150 news department staff , more than any other newspaper. </li></ul><ul><li>Foreign news bureaus : 25, including a United Nations bureau based in New York City. The New York Times has bureaus on five continents, including Africa, where The New York Times has maintained a bureau since the 1950’s. </li></ul><ul><li>New York region bureaus : 10, including Albany and Trenton Capitol bureaus. </li></ul><ul><li>National news bureaus : 13, including two bureaus recently opened in Phoenix and Kansas City, Mo. </li></ul>
  19. 19. Appendix – Data Sources <ul><li>Slide 3 </li></ul><ul><li>Approximately 80% of The New York Times’s top 100 print advertisers (ranked by revenue spending) are also advertising on the Web site. </li></ul><ul><li>Source: Internal data, 2010 </li></ul><ul><li>NYTimes.com attracts an impressive worldwide audience of 48.5 million monthly unique visitors. </li></ul><ul><li>Source: comScore Media Metrix, worldwide report, January 2011 </li></ul><ul><li>New York Times print circulation: </li></ul><ul><ul><li>876,638 daily </li></ul></ul><ul><ul><li>1.35 million Sunday </li></ul></ul><ul><li>Source: Audit Bureau of Circulations (ABC) September 2010 FAS-FAX, subject to audit </li></ul><ul><li>Slide 4 </li></ul><ul><li>To date, there have been more than 1.6 million downloads of The Times’s iPad app. </li></ul><ul><li>Source: iTunes, as of March 6, 2011 </li></ul><ul><li>The Times has generally been the top-selling newspaper on the Kindle. </li></ul><ul><li>Source: Amazon.com – online list of bestsellers in Kindle newspapers, as of March 7, 2011 </li></ul>
  20. 20. Appendix – Data Sources <ul><li>Slide 5 </li></ul><ul><li>New York Times mobile Web applications generated almost 111 million page views in February. </li></ul><ul><li>Source: Internal data, February 28, 2011 </li></ul><ul><li>The Times iPhone app has been downloaded 6.2 million times since its launch in July 2008. </li></ul><ul><li>Source: iTunes, as of February 28, 2011 </li></ul><ul><li>In December, The Times launched an app for the Google Chrome Store, already has more than 190,000 users and has an average rating of 4.5 out of 5 from more than 800 reviewers. </li></ul><ul><li>Source: Chrome Web Store, March 7, 2011 </li></ul><ul><li>The Times’s Facebook page has almost 1.2 million fans. </li></ul><ul><li>Source: Facebook.com/nytimes, as of March 16, 2011 </li></ul><ul><li>The Times’s main Twitter account has more than 3 million followers. </li></ul><ul><li>Source: Twitter.com/nytimes, as of March 16, 2011 </li></ul>
  21. 21. Appendix – Data Sources <ul><li>Slide 13 </li></ul><ul><li>NYTimes.com is #1 among WSJ.com, Forbes.com and CNNMoney.com in reaching “Corporate C-Level Executives” and “Business Decision-Makers” online. </li></ul><ul><li>Source: Nielsen @Plan 2010 Release 4 </li></ul><ul><li>Loyal – Core subscriptions of 2+ years are more than 800,000, up from 650,000 in 2000. </li></ul><ul><li>Source: Internal data </li></ul><ul><li>New York Times readers are significantly more upscale than the U.S. adult population in a range of </li></ul><ul><li>demographics, including high education, white-collar jobs, high household and personal incomes, and </li></ul><ul><li>expensive homes. </li></ul><ul><li>Source: MRI Fall 2010 </li></ul><ul><li>Influential – The New York Times is #1 in reaching U.S. opinion leaders in both print (weekday) and online.  </li></ul><ul><li>Source: Erdos & Morgan 2010 U.S. OPINION LEADERS STUDY </li></ul>
  22. 22. Appendix – Data Sources <ul><li>Slide 14 </li></ul><ul><li>Engaged – Median time spent by our readers with the weekday New York Times is 36 minutes and 53 minutes </li></ul><ul><li>reading the Sunday New York Times. 61 percent of Sunday Times readers indicate they are interested in the </li></ul><ul><li>advertising. </li></ul><ul><li>Source: MRI Fall 2010 </li></ul><ul><li>Compared with nine leading lifestyle and business titles, the Sunday New York Times ranks #1 in percentage </li></ul><ul><li>of readers who rank it as a favorite and percentage of readers who spend nearly an hour with the issue. </li></ul><ul><li>Source: MRI Fall 2010 </li></ul><ul><li>Median household income for a reader of the Sunday New York Times is $112,154. </li></ul><ul><li>Source: MRI Fall 2010 </li></ul><ul><li>Median individually earned income for a reader of the Sunday Times is $56,421. </li></ul><ul><li>Source: MRI Fall 2010 </li></ul><ul><li>Female – The New York Times delivers an audience of 1.5 million  affluent women. This represents 30% of total New York Times weekday and Sunday readers. </li></ul><ul><li>Source: MRI Fall 2010 (Affluent women defined as women with HHI $100K+) </li></ul><ul><li>Slide 17 </li></ul><ul><li>NYTimes.com ranked #1 in OMMA’s June 2010 list of the 100 Most Important Online Publishers. </li></ul><ul><li>Source: The Magazine of Online Media, Marketing & Advertisers, June 1, 2010 </li></ul>

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