The New York Times: Monetizing Quality Content and Engaging Readers in the Digital Era, Lecture notes of Journalism

Download The New York Times: Monetizing Quality Content and Engaging Readers in the Digital Era and more Lecture notes Journalism in PDF only on Docsity!   Our  Path  Forward   October  7,  2015     From  our  earliest  days,  The  New  York  Times  has  committed  itself  to  the  idea  that   investing  in  the  best  journalism  would  ensure  the  loyalty  of  a  large  and  discerning   audience,  which  in  turn  would  drive  the  revenue  needed  to  support  our  ambitions.  This   virtuous  circle  reinforced  itself  for  over  150  years.       And  at  a  time  of  unprecedented  disruption  in  our  industry,  this  strategy  has  proved  to   be  one  of  the  few  successful  models  for  quality  journalism  in  the  smartphone  era,  as   well.       This  week  we  have  been    celebrating  a  remarkable  achievement  :  The  New  York  Times   has  surpassed  one  million  digital  subscribers.  Our  newspaper  took  more  than  a  century   to  reach  that  milestone.  Our  website  and  apps  raced  past  that  number  in  less  than  five   years.     This  accomplishment  offers  a  powerful  validation  of  the  importance  of  The  Times  and   the  value  of  the  work  we  produce.  Not  only  do  we  enjoy  unprecedented  readership  —  a   boast  many  publishers  can  make  —  there  are  more  people  paying  for  our  content  than   at  any  other  point  in  our  history.  The  New  York  Times  has  64  percent  more  subscribers   than  we  did  at  the  peak  of  print,  and  they  can  be  found  in  nearly  every  country  in  the   world.       Our  model  —  offering  content  and  products  worth  paying  for,  despite  all  the  free   alternatives  —  serves  us  in  many  ways  beyond  just  dollars.  It  aligns  our  business  goals   with  our  journalistic  mission.  It  increases  the  impact  of  our  journalism  and  the   effectiveness  of  our  advertising.  It  compels  us  to  always  put  our  readers  at  the  center  of   everything  we  do.       In  turn,  our  readers  are  helping  our  journalism  achieve  unprecedented  reach  and   influence,  making  The  Times  the  most-­‐discussed  news  publisher  on  social  media,  the   most-­‐cited  by  other  media  outlets,  and  the  publisher  with  the  most  other  sites  linking  to   its  work  across  the  entire  Internet.  And  those  readers  are  helping  The  Times  build  the   most  commercially  successful  digital  news  business  in  the  world.       1   This  unique  and  enviable  place  we  occupy  in  the  media  landscape  is  the  result  of  years   of  hard  work  in  every  part  of  the  company.  The  Times  has  worked  diligently  to  secure   its  financial  health  and  to  reorient  itself  to  address  new  challenges.  We  have  more  than   doubled  our  digital  revenue  in  the  last  five  years  and  have  amassed  a  considerable  cash   reserve.  We  have  moved  quickly  to  transform  digital  advertising,  build  our  digital   audience  and  subscriber  base,  and  create  the  most  ambitious  multimedia  report  in  the   world.  A  strong  and  united  team  is  collaborating  better  than  ever  across  news,  business   and  technology  and  showing  why  the  dominant  voice  of  the  print  era  will  be  the   dominant  voice  in  the  mobile  era  as  well.     With  a  number  of  important  efforts  underway  that  are  aimed  at  accelerating  this   progress,  we  want  to  use  this  moment  to  share  our  challenges,  our  progress  and  our   plans  for  moving  forward.       Our  Challenge   Skeptics  still  openly  wonder  if  we  can  continue  to  deliver  on  this  journalistic  mission,   given  the  seeming  mismatch  between  the  economics  of  news  media  and  the  scale  of  our   operations.  They  suggest  the  days  when  a  media  company  can  fund  a  big,  ambitious   newsroom  are  over.  They  doubt  we  can  continue  to  cut  legacy  costs  and  fund  digital   innovation  at  the  same  time.       These  are  serious  and  fair  questions.  The  most  pressing  challenge  is  not  to  prove  that   our  journalism  matters  —  it's  to  demonstrate  that  our  business  can  continue  to  support   this  mission.       Our  response  is  that  we  are  more  confident  than  ever  in  the  path  The  Times  has  chosen,   and  that  confidence  is  grounded  in  our  track  record.  In  less  than  five  years,  The  Times   has  succeeded  in  doubling  its  digital-­‐only  revenues  to  roughly  $400  million  last  year.  To   put  that  figure  in  context,  that  was  about  as  much  as  four  of  our  highest-­‐profile  digital   competitors  —  Huffington  Post,  BuzzFeed,  Vox  Media  and  Gawker  Media  —  reportedly   earned  last  year    combined  .     We’ve  done  this  by  prioritizing  digital  growth,  while  also  carefully  managing  our  print   operations  and  reducing  costs  throughout  the  company  without  sacrificing 
  excellence.   And  we’ve  done  this  by  building  the  largest  audience  of  readers  —  we  are  visited  on   over  140  million  devices  around  the  world  each  month  —  and  paying  subscribers  in  our   history.  This  combination  of  mass  reach  and  a  large  subscription  base  is  unique  in  our   industry.     The  million-­‐digital-­‐subscribers  mark  is  the  clearest  sign  yet  that  the  biggest  bet  we   placed  as  a  company  is  paying  off.  The  money  contributed  directly  by  readers  now   2   needs  of  our  readers.  Here's  how  we  are  putting  these  principles  into  action  across  The   Times.       We  will  continue  to  lead  the  industry  in  creating  the  best  original  journalism  and   storytelling.     ● More  than  anything,    the  best  journalism  will  continue  to  separate  The  Times  from   the  competition.  This  is  why  we  have  fiercely  protected  the  number  of  reporters  in   our  newsroom  —  we  employ  the  same  number  today  as  we  did  in  2000,  when   newspapers  were  most  profitable  —  and  empowered  them  with    time  ,    resources  and   expertise  to  find  and  share  the  most  important  stories  in  the  world.  At  the  same   time,  our  newsroom  and  opinion  operations  need  to  continue  to  evolve,  which  is   why  we  have  also  prioritized  adding  journalists  with  new  skills  in  graphics,  video,   technology,  design,  data,  audience  engagement  and  much  more.     ● Our  team  of  journalists  with  deep  technical  and  design  skills,  unrivaled  in  both  size   and  achievement,  is  continuously    reimagining  how  we  tell  stories    a  n  d    leading   innovation    across  the  media  industry.  The  result  is  seen  not  just  in  the  weekly   parade  of  big    multimedia  projects  but  in  the  everyday  brilliance  of  the    visual  and   digital  storytelling  made  possible  by  the  Graphics,  Interactive  News,  Digital  Design,   CMS  and  technology  teams  —  from  our  daily  briefings  to  our    liveblogging  platform   to  the    analytical  sophistication  of  The  Upshot.  Now  we  are  pushing  all  our   journalists  to  become  more  flexible  in  using  these    storytelling  tools  and  techniques,   ensuring  we  are  serving  our  readers’  changing  habits  and  aren’t  bound  by  artificial   limitations  in  forms  tied  to  print.     ● We  are  continuing  to  build  new  journalistic  muscles  as  well.  Video  and  live  events   are  increasingly  essential  ways  of  connecting  with  new  audiences.  We  will  not  be   starting  from  scratch  —  our  video  department  has  been    nominated  for  and    won   more  Emmys  than  any  publisher  over  the  last  few  years,  and  our  events  and   conferences  are  making  news  and  developing  worldwide  audiences  —  but  we  must   expand  our  investment  and  refine  our  approach  in  these  areas  and  we  will  be   sharing  more  about  our  plans  for  elevating  both  operations  in  coming  months.       We  will  transform  the  product  experience  to  make  The  Times  an  even  more   essential  part  of  our  readers’  daily  lives.     ● Our  readers  increasingly  expect  their  experience  on  our  website  and  apps  to  be   responsive  to  their  individual  interests  and  needs.  We  are  shifting  from  a  pure   broadcast  model  to  develop  one-­‐to-­‐one  relationships  with  readers  that  tailor  the   way  they  experience  our  content,  while  still  retaining  our  unique  editorial  judgment   in  setting  the  day’s  agenda.  We  are  trying  new  features  and    making  improvements   monthly  —  from  mobile  alerts  connected  to  readers’  interests  to  articles  that   rewrite  and  contextualize  data    based  on  your  hometown    —  and  we  are  assembling   5   teams  to  take  on  the  more  ambitious  work  of  designing  fully  personalized,   responsive  experiences,  starting  with  mobile.   ● Mobile  is  not  simply  another  distribution  method;  it  is  transforming  the  way  people   consume  news  and  information.  The  way  we  tell  our  stories,  the  design  of  the   experience  and  the  speed  and  functionality  of  the  products  will  be  critical  to   differentiating  The  Times  from  the  competition.  We  have  been  improving  our  two   main  entry  points  on  mobile  —  our  home  page  and  our  article  page  —  making  these   experiences  more  visual  and  helpful,  with  features  like  bigger  photos  and  bullet   points  to  distill  breaking  news.  And  we  are  investing  new  focus  into  pushing   information  to  readers,  whether  that  is  through    newsletters  ,    push  alerts  or  new   formats  like    the  Apple  Watch  .     ● Our  readers  turn  to  The  Times  for  more  than  just  news  and  entertainment.  They   turn  to  us  to  help  them  make  decisions  in  their  daily  lives.  The  newspaper  has   always  provided  a  significant  service  role  —  helping  readers  decide  what  show  to   see,  what  book  to  read  and  what  apartment  to  buy  —  and  we  believe  we  can  add   even  more  value  on  mobile.  The  effort  to  modernize  our  service  journalism  began   with
    Cooking  a  year  ago.  Our  goal  was  to  use  our  content  and  expertise  to  address  a   specific  need  for  our  readers:  what  to  cook  for  dinner.  With  almost  five  million   monthly  users,  Cooking  has  been  so  popular  with  readers  that  we  are  expanding  this   service  approach  to  other  areas  starting  with  real  estate,  health,  and  film  and   television.  Together  these  efforts  aim  to  reimagine  our  features  sections  for  the   mobile  era  with  the  same  vigor  and  creativity  that  we  put  into  launching  them  in  the   1970s. 
     We  will  continue  to  develop  new  audiences  and  grow  The  Times  as  an   international  institution,  just  as  we  once  successfully  turned  a  metro  paper  into  a   national  one.       ● The  Times  brand  already    resonates  globally  and  our  progress  expanding  our   overseas  audience  has  accelerated,  with  an  increasing  percentage  of  our  subscribers   coming  from  abroad.  Today  we  boast  paying  subscribers  in  193  countries  and  our   London,  Paris  and  Hong  Kong  offices  have  become  key  parts  of  a  truly  global   operation.  But  our  efforts  are  still  disjointed  and  underfunded  relative  to  their   importance.  We  have  appointed  Joe  Kahn  and  Stephen  Dunbar-­‐Johnson  to  ensure   we  are  aggressively  executing  a  unified  approach  to  international  content,  audience   development  and  monetization  efforts  across  the  company.     ● As  part  of  these  efforts,  we  will  continue  to  test  and  refine  new    country-­‐specific   approaches  to  reaching  new  audiences  and  gaining  subscribers,  including   experimenting  with  translations,  local  briefings  and  specialized  content  built  for   social  media.  The  focus  of  this  approach—  which  began  in  Mexico  and  is  already   underway  elsewhere  —  is  to  tailor  our  journalism  and  products  to  make  them  more   relevant  for  specific  new  audiences,  rather  than  viewing  the  rest  of  the  world  as  just   6   one  big  audience.     ● The  next  generation  of  readers,  both  at  home  and  particularly  abroad,  will  be  found   on  other  platforms,  where  we  must  continue  to  be  a  leading  voice.  We  are  poised  to   become  the  first  publisher  to  boast  20  million    Twitter  followers  and  10  million   Facebook  fans  ,  a  sign  of  the  strength  of  both  our  journalism  and  brand.  We  will   continue  experimenting  to  reach  new  readers  offsite  and  in  new  formats,  from   Facebook  Instant  Articles  to  Apple  News  to  Snapchat.  But  our  clear  focus  remains  on   driving  interested  readers  back  to  our  platforms  where  we  can  expose  them  to  the   full  breadth  of  our  work  and  help  them  build  a  lifetime  relationship  with  The  New   York  Times.   ● Our  investment  in  audience  development  over  the  last  year  succeeded  in  expanding   the  overall  number  of  readers  who  visit  our  own  platforms  by  nearly  a  quarter,   while  also  increasing  the  number  of  deeply  engaged  readers.  Moving  forward  we   will  be  particularly  focused  on  younger  readers,  who  are  already  our  largest   category  of  readers  —  40  percent  of  our  mobile  audience  is  under  35  years  old  —   but  who  lag  other  groups  in  engagement.  Expanding  these  relationships  isn’t  just  a   matter  of  growing  our  audience;  it  will  help  us  stay  ahead  of  the  curve.  Young   readers  were  the  first  to  shift  to  mobile  and  the  first  to  embrace  social  platforms,   and  they  have  become  reliable  first  indicators  of  major  trends  that  ultimately  affect   our  entire  audience.       
We  will  improve  the  customer  experience  for  our  readers,  making  it  easier  to   form  and  deepen  a  relationship  with  The  Times.       ● As  our  subscription  model  approaches  its  fifth  anniversary,  we  know  it  must  be   updated  with  simplified  pricing  options  that  reflect  our  readers’  multiplatform  lives.   We  are  actively  testing  to  find  the  right  price  and  approach.  Even  though  it  may   come  with  short-­‐term  costs,  we  believe  making  our  subscription  offerings  more   intuitive  will  increase  subscriber  growth  and  retention,  and  ultimately  revenue,  in   the  long  term.   ● Every  moment  in  the  reader's  journey,  from  visiting  for  the  first  time  to  registering   as  a  user  to  becoming  a  lifelong  subscriber,  must  be  frictionless,  intuitive  and   responsive.  To  support  this  goal,  we  will  improve  each  stage  of  the  experience.  This   includes  our  efforts  to  add  benefits  for  registered  users,  our  move  to  free   subscription  trials  that  better  showcase  the  breadth  of  The  Times  and  our   improvements  to  a  customer  experience  that  rewards  loyalty  and  habituation.  Once   readers  pull  out  their  wallets,  we  must  work  tirelessly  to  increase  the  value  of  their   subscription  with  better  features  and  service.     ● We  must  get  better  at  demonstrating  and  communicating  the  unique  value  of   reading  —  and  especially  paying  for  —  The  New  York  Times.  This  includes   everything  from  how  we  market  the  Times  brand  to  how  we  ask  people  to  pay  for  a   Times  subscription  to  how  we  present  our  content  on  our  own  and  others'   7   to  tools  that  will  allow  them  to  see  how  readers  are  finding  and  engaging  with  their   stories.     ● We  are  reimagining  the  way  we  build  products  to  reflect  the  simple  truth  that   journalism,  audience  development  and  revenue  are  not  at  odds  but  entirely   dependent  on  one  another.  This  includes  continuing  to  expand  on  the  success  of  the   last  year  by  empowering  more  cross-­‐functional  teams  —  with  news,  product,   design,  technology,  marketing  and  advertising  working  shoulder  to  shoulder  —  to   create  more  cohesive  and  comprehensive  products  that  meet  our  customers’  needs   across  platforms.   ● Over  the  next  few  years,  the  battle  is  going  to  be  won  or  lost  on  smartphones.  This   continues  to  be  our  biggest  area  of  focus  in  every  part  of  the  organization.  But  longer   term,  we  have  to  build  a  flexible  organization  that  can  respond  quickly  to  future   changes  in  technology  and  user  behavior.     Our  Path  Forward   This  new  era  will  continue  to  be  defined  by  relentless  change:  in  technology,  in   consumer  behavior,  in  business  models.  But  what  hasn’t  changed  is  what  defines  The   Times.       The  first  constant  is  our  unmatched  investment  in  journalism.  That  investment  sent  our   journalists  to  more  than  170  countries  last  year,  from    war  zones  to  the    lawless  high  seas   to  ground  zero  of  the    Ebola  epidemic  .  That  investment  provides  journalists  the  time  and   resources  to    uncover  stories  that  would  otherwise  never  see  the  light  of  day.  That   investment  has  allowed  us  to  bring  aboard  more  journalists  who  can  code  than  any   other  news  organization  and  empower  them  to    invent    new    forms  of  digital  storytelling.       The  second  constant  is  our  commitment  to  putting  readers  first.  Punch  Sulzberger  often   talked  about  how,  in  lean  times,  it  was  best  to  avoid  the  temptation  to  thin  the  broth  and   instead  put  “more  tomatoes  in  the  soup.”  When  we  were  forced  to  ration  newsprint   during  World  War  II,  we  filled  our  limited  pages  with  news  while  other  papers  filled   theirs  with  ads.  During  the  economic  downturn  of  the  1970s,  we  added  new  feature   sections  while  others  tightened  their  belts.  And  as  the  economics  of  the  Internet  put  the   entire  media  industry  under  unrelenting  pressure  in  recent  years,  we  sold  off  our   non-­‐core  businesses  to  focus  our  energy  and  dollars  on  The  New  York  Times.       We  are  in  a  moment  of  similar  challenge.  Over  the  next  few  years,  we  must  find  a  way   grow  our  digital  readership  and  digital  revenue  to  a  point  where  we  can  continue  to   meet  these  enduring  commitments  to  journalism  and  readers.  Our  strong  shared  sense   of  mission  and  values  should  give  us  the  confidence  to  be  even  more  ambitious  and   more  aggressive  in  embracing  change.       10   As  we  execute  and  adjust  our  plans,  we  must  remember  that  quality  journalism  and   reader  service  don’t  just  embody  our  mission;  they  represent  our  competitive   advantage.  At  a  time  when  other  media  organizations  are  seeing  their  brand  power  and   customer  relationships  eroded  by  the  proliferation  of  publishers  and  the  expanding   reach  of  platforms,  our  focus  on  readers  and  the  quality  of  our  journalism  and  our   technology  set  us  apart  and  create  a  powerful  center  of  gravity.  Our  subscribers  read   hundreds  of  articles  each  month,  on  average,  levels  of  engagement  that  are  unheard  at   most  media  organizations.  And  every  time  major  news  breaks,  the  first  thing  millions   more  readers  do  is  to  head  to  The  Times,  looking  for  the  most  credible,  authoritative   account  of  what  happened  and  the  sharpest  analysis  of  what  it  means.     Our  high-­‐level  definitions  of  success  also  remain  unchanged.  We  seek  to  advance  our   mission  and  remain  faithful  to  our  identity.  We  seek  to  continue  to  produce  the  world’s   finest  news  report,  while  making  our  digital  business  large  and  profitable.  We  seek  to   expand  our  loyal  readership  around  the  world  and  increase  the  impact  and  influence  of   our  work.  And  we  seek  to  foster  the  sense  among  employees  that  The  Times  is  an   exciting  and  
meaningful  place  to  work,  focused  on  collaboratively  solving  big  problems   that  will  help  lift  up  the  entire  media  and  technology  industry.  
   The  work  ahead  of  us  is  more  important  than  simply  securing  the  future  of  The  Times.   Our  goal  —  indeed,  our  responsibility  —  is  to  prove  there  is  a  business  model  for  the   kind  of  ambitious,  original,  high-­‐quality  journalism  that  is  essential  for  an  informed   society.  Though  the  scale  and  complexity  of  that  ambition  makes  our  road  steeper  and   more  difficult  than  it  would  otherwise  be,  it  also  makes  it  more  essential  that  we   succeed.     The  Times  is  forging  this  path  from  a  position  of  strength.  We  have  a  track  record  of   growth  and  excellence  on  which  to  build.  We  have  a  new  leadership  team  that  is  united   around  these  goals  and  we  have  committed  employees  who  are  the  best  in  their  fields.   We  have  a  mission  worth  fighting  for.  And  we  have  an  audience  that  is  rooting,  and   paying,  for  The  Times  to  thrive.  Now  we  must  do  exactly  that.   Dean  Baquet  ,  Executive  Editor   Roland  Caputo  ,  Executive  V.P.,  Print  Products   Jim  Follo  ,  Chief  Financial  Officer   Michael  Golden,    Vice  Chairman   Meredith  Levien  ,  Chief  Revenue  Officer   Ken  Richieri  ,  General  Counsel   Andy  Rosenthal  ,  Editorial  Page  Editor   Arthur  O.  Sulzberger  Jr.  ,  Chairman  and  Publisher   Mark  Thompson  ,  Chief  Executive  Officer   Kinsey  Wilson  ,  Executive  V.P.,  Digital  Products   11   ------------------------ Except for historical information contained herein, the matters discussed in this post are forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those predicted by such forward-looking statements. These risks and uncertainties include changes in the business and competitive environment in which the Company operates, the impact of national and local conditions and developments in technology, each of which could affect the Company’s circulation and advertising revenues, the growth of its digital businesses and the implementation of its strategic initiatives. The Company’s actual results could also be impacted by the other risks detailed from time to time in its publicly filed documents, including its Annual Report on Form 10-K for the year ended December 28, 2014. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.