際際滷

際際滷Share a Scribd company logo
Aadish Chopra
Abhishek Jathar
Edgar Guzman
Kousalya Dwarapudi
Shakunthala Narayanaswamy
 Impacts of Technology
 Online Model
 Porters 5 forces framework
 Product Strategy
 Pricing Strategy
 Recommendations
POSITIVE NEGATIVE
New sources of revenue Drop in Ad Revenue
(Paywall- 287.5% increase in ( 68% decrease in Ads-
Dec11 Digital Ads-5.3%(Q411)) 2007-09)
Expansion of reader base Drop in Circulation
(Lean back experience increased (9.6% decrease in overall
news consumers via ipads) circulation )
Operational Cutbacks
(Detroit Free Press & AnnArbour
news)
 Uses a device specific & metered system design
 20 free articles / month
Before Paywall After Paywall
Digital Ad Revenue-8.2% Digital Ad Revenue  28%
Increase in Online traffic 390,000 paid Subscribers
70% Print also digital
From Mar 2011 to Dec 2011  Revenue Paid Subscribers
Positive Growth? YES !
Revenue as of Dec 2011
Subscription rate = $4/week
No. of Subscribers= 390K
Revenue=$4*390K*4(weeks)=6.2 Million
Revenue as of April 2011
No. of Subscribers=100K
Revenue=$4*100K*4=1.6 Million
Increase in Revenue from April to Dec 2011:
4.6 Million which is 287.5%
Customer Power HIGH
Subscribers & Advertisers
 Alternate source of news
easily available
 Cost of switching is low
Suppliers power
HIGH
Eminent
Columnist
LOW
Intl. news
agencies.
Competitive Rivalry HIGH
 Other established newspapers
 Classifieds
Craigslist
Monster.com
Threat of New Entrant HIGH
 Low capital investment
Ex : Buzzfeed
Threat of Substitutes HIGH
 Televisions
 Radio
 Social Media
 News Magazines
Merits Demerits
1. Increased Revenue
via subscriptions
2. Improves
legitimacy of news
content
1. Losing a potential
reader-base.
2. Revenue is less as
compared to print
revenue
3. Leaky paywall leads to
loss of revenue
 Updated Metered System : The readers would be allowed to
access only 15 free articles, since anything over 15 then they
will simply wait it out for the next month to start and reset
their article count
 To lock the other 30% of print subscribers, we can give them
offers such as One year subscription at $260 with free e-
reader
 Enticing different groups with introductory offers after
registering their credit/debit card details (so that we dont lose
them after the trial period) :
 Corporate tie-ups: Special discounted prices for the
employees.
 Promotions for Students, giving them one month free trial.
 Tie up with the Network providers, registered users get one
month subscription at $12($3/week), originally at $15/
month ($3.75/week)
In order to make the pricing of the NYT digital services more
attractive they can do the following :
1. Segment wise subscription : This will allow them to capture
subscribers who are fans of specific sections of the NYT. Only
exclusive sections like Opinions page, Editorial page.
2. Team-up with tablet manufacturers, every new tablet buyer
would get a one-year subscription of NYT digital at only $200
additionally ($3.84 per week).(The original pricing is $5 per
week i.e,$260 per year).
Subscription Pricing
1 section (op-eds) $2/month
2 sections ( op-eds/
editorial)
$3/month
To move the print subscribers to digital, we can do either of
these alternatives:
 Only 1 crossword and Sudoku puzzle in the print edition but
for more they can access it on the online edition (medium and
hard levels) -Assuming around 10% of print users actually use
the crosswords, that means around 39,000 (1.3 million print
subscribers in 2011) digital subscribers at least
 More investment in Exclusive articles, hire better writers since
the content has to be worth those many dollars. Exhibit 3 shows
decrease in SG&A(Selling, General & Admin) from 2008 to 2011
 Have closed group network where the online subscribers can
blog and post comments, we can reward the most active user
with points that can get them discounts in subscription fees
and the best comment can be published
Ad

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Final Presentation

  • 1. Aadish Chopra Abhishek Jathar Edgar Guzman Kousalya Dwarapudi Shakunthala Narayanaswamy
  • 2. Impacts of Technology Online Model Porters 5 forces framework Product Strategy Pricing Strategy Recommendations
  • 3. POSITIVE NEGATIVE New sources of revenue Drop in Ad Revenue (Paywall- 287.5% increase in ( 68% decrease in Ads- Dec11 Digital Ads-5.3%(Q411)) 2007-09) Expansion of reader base Drop in Circulation (Lean back experience increased (9.6% decrease in overall news consumers via ipads) circulation ) Operational Cutbacks (Detroit Free Press & AnnArbour news)
  • 4. Uses a device specific & metered system design 20 free articles / month Before Paywall After Paywall Digital Ad Revenue-8.2% Digital Ad Revenue 28% Increase in Online traffic 390,000 paid Subscribers 70% Print also digital From Mar 2011 to Dec 2011 Revenue Paid Subscribers Positive Growth? YES !
  • 5. Revenue as of Dec 2011 Subscription rate = $4/week No. of Subscribers= 390K Revenue=$4*390K*4(weeks)=6.2 Million Revenue as of April 2011 No. of Subscribers=100K Revenue=$4*100K*4=1.6 Million Increase in Revenue from April to Dec 2011: 4.6 Million which is 287.5%
  • 6. Customer Power HIGH Subscribers & Advertisers Alternate source of news easily available Cost of switching is low Suppliers power HIGH Eminent Columnist LOW Intl. news agencies. Competitive Rivalry HIGH Other established newspapers Classifieds Craigslist Monster.com Threat of New Entrant HIGH Low capital investment Ex : Buzzfeed Threat of Substitutes HIGH Televisions Radio Social Media News Magazines
  • 7. Merits Demerits 1. Increased Revenue via subscriptions 2. Improves legitimacy of news content 1. Losing a potential reader-base. 2. Revenue is less as compared to print revenue 3. Leaky paywall leads to loss of revenue
  • 8. Updated Metered System : The readers would be allowed to access only 15 free articles, since anything over 15 then they will simply wait it out for the next month to start and reset their article count To lock the other 30% of print subscribers, we can give them offers such as One year subscription at $260 with free e- reader Enticing different groups with introductory offers after registering their credit/debit card details (so that we dont lose them after the trial period) : Corporate tie-ups: Special discounted prices for the employees. Promotions for Students, giving them one month free trial. Tie up with the Network providers, registered users get one month subscription at $12($3/week), originally at $15/ month ($3.75/week)
  • 9. In order to make the pricing of the NYT digital services more attractive they can do the following : 1. Segment wise subscription : This will allow them to capture subscribers who are fans of specific sections of the NYT. Only exclusive sections like Opinions page, Editorial page. 2. Team-up with tablet manufacturers, every new tablet buyer would get a one-year subscription of NYT digital at only $200 additionally ($3.84 per week).(The original pricing is $5 per week i.e,$260 per year). Subscription Pricing 1 section (op-eds) $2/month 2 sections ( op-eds/ editorial) $3/month
  • 10. To move the print subscribers to digital, we can do either of these alternatives: Only 1 crossword and Sudoku puzzle in the print edition but for more they can access it on the online edition (medium and hard levels) -Assuming around 10% of print users actually use the crosswords, that means around 39,000 (1.3 million print subscribers in 2011) digital subscribers at least More investment in Exclusive articles, hire better writers since the content has to be worth those many dollars. Exhibit 3 shows decrease in SG&A(Selling, General & Admin) from 2008 to 2011 Have closed group network where the online subscribers can blog and post comments, we can reward the most active user with points that can get them discounts in subscription fees and the best comment can be published

Editor's Notes

  • #5: Also, the number unique visitors (monthly) remained constant. In Feb 2011 it was around 31 million and by Jan 2012 they still remained the same.
  • #8: Metrics for why it was a success : >
  • #10: The digital paper has 25+ sections, for calculations we have considered it to be 25. Subscription for tablet per month 20$ (From Table B pricing) Considering current model 0.8$/ section (20 $ / 25 sections) With segmented pricing model strategy where 1 section costs 2$ we have a profit of 150% [(2 0.8)/(0.8) * 100 = 150% ] Whereas if the subscribers go for 2 sections, well have profit of 87.5% > Op-eds : Opinions page has featured articles its opp. to the editorial page in the print edition.
  • #11: Why 39,000? 30% of 1.3 million only not digital.