The New York Times is struggling with revenue right now in the face its transition to an online focused business model. In the first quarter of 2013, net income was $3.1 million, down from $42.1 million in the period a year earlier. Total advertising revenue declined 11.2 percent over last quarter.
Realizing the trouble it faces in the print and online advertising model, The New York Times has shifted its focus to its online business model, specifically to push digital subscriptions. Circulation revenue grew by 6.5 percent as it continues to creates more enticing and competitive subscription rates for its website.
In order to continue on this growing revenue source, new and varying subscription rates are to be introduced that target specific audiences. People will now be able to subscribe to cheap alternative plans that allow them to only read specific parts of the website. This is so that readers that only care about the politics section or the arts section, for example, will now only have to pay a minimal fee to read just those articles. For the most dedicated readers, premium subscription plans will be made available that allow limitless access to all articles including attending actual Times events.
I am really impressed by The Times’ ambition to drive its digital circulation and revenue. They see an opportunity to grow their circulation numbers, which in turn will eventually pay off and drive up traditional advertising revenue as more people come to using the site on a daily basis.