1. “ All The News That's Fit To Print” Redesigning the newspaper for a more Reliable tomorrow PREPARED FOR: PROFESSOR CARTER DR. KEIFER DR. MATTA PROFESSOR WRIGHT PREPARED BY TEAM 5 PM: DOWNEY, KEVIN IRWIN, SARAH JONES, KRISTOPHER SNYDER, JEFFREY ZAHEDI, REZA The New York Times

2. Executive Summary Introduction Company and Industry Analysis Recommendation: Advertising Recommendation: Education Future Outlook Recommendation: Internet The New York Times has been known as the pinnacle news source of all United States publishing companies. Delivering first-class news since 1851, The New York Times has created loyal customer base and high brand equity. However, since the turn of the century The New York Times and the publishing industry as a whole, has faced declining circulation and revenue due to the technological wave and the declining economy. The New York Times has been doing many things to boost sales and increase revenue through online capabilities but there is much room for improvement. By implementing a way in which to increase advertising revenue, The Times will gain a higher profit margin and maximize shareholder’s wealth. The New York Times can gain higher advertising revenue by maximizing capacity on their interface for advertisements, decreasing current advertising costs by 10%, and boosting inside sales to enhance client base. Expanding the growth of The New York Times current market is an excellent way to increase sales and circulation. Creating a more proficient way to enhance education and values by utilizing The New York Times paper in education will establish a higher market share and heighten sales. With the installment of a trained sales team, advertisements, and new online features, the use of The New York Times in education will be a must-have entity. The New York Times offers many free user capabilities which in turn has dropped revenue. The NYT website is available anywhere in the world free of charge. This has caused many people to discontinue their printed paper. Creating a NYT insider monthly account, consumers will pay a small fee for access to the full daily newspaper online and have the capability to download the paper as well. The website will still be available on a limited basis for free, however to gain full usability an insider subscription must be purchased. Implementing this feature will maintain high customer relations and boost revenue. The New York Times has a great opportunity to implement strategies to achieve higher revenue while still maintaining high brand equity. Assuring top-notch news in an efficient manner has always been the New York Times first priority. Utilizing these recommendations to increase advertising revenue, amplify market share, and development of an insider account online will maximize net income and shareholders wealth.

3. Table of Contents Executive Summary…………………….………………………………………….............................................2 Table of Contents………………...…………………………………… ….……………………………………..3 Company Analysis………………..…………………………………………………………………………….………….......4-7 Industry Analysis………………………………………………………………………………………………......8-10 Recommendation 1: Advertisements Advertisement Problems……………………………………………………………………....11-12 Newspaper Advertisement Revenues………………….………………………………….…13 Increasing Advertisement Revenues………………………………………………….…...…14 Recommendation 2: Newspapers in Education Mission Statement……………………………………………………………………………..15-16 Advantages and Problems…………………………………………………………………….17-18 Recommendation and Implementation……………………………………………………....19-20 Recommendation 3: Increasing Internet Revenues Current Offers…………………………………………………………………………………..21-22 Disadvantages for the Online Paper………………………………………………………...23-24 Internet Increases…………………………………………………………………………..…..25 Pay-Per View……………………………………………………………………………………26 Future Outlook…………………………………………………………………………………………………..…27-28 References…………………………………………………………………………………………………….......29-30 Appendices…………………………………………………………………………………………………………31-33 Introduction Company and Industry Analysis Recommendation: Advertising Recommendation: Education Future Outlook Recommendation: Internet

4. Company Analysis

8. Industry Analysis

9. The reasons for the slight dip in percentage from 2007 to 2008 could be from a decline in Net Income, or an increase in Sales. Based on The New York Times financial statements, net income has severely declined from 2007 to 2008; from $208.7 to -$57.84 million, causing this decline in Profit Margin. (Jesdanun,,2009) Profit Margin Leverage ( Equity Multiplier ) Gannett News Corp. Industry Analysis The equity multiplier is a way of examining how a company uses debt to finance its assets. A higher equity multiplier signifies the use of more DEBT , and more RISK . Throughout 2008, along with their competitors, The New York Times has significantly decreased their equity , increasing leverage and financial risk. Introduction Company and Industry Analysis Recommendation: Advertising Recommendation: Education Future Outlook Recommendation: Internet Source: Market Watch Source: Market Watch Market Cap (millions) 2007 2008 New York Times 2326 767 Gannett 7940 1440 News Corp. 70000 5810 The overall VALUE of these firms has been DECLINING since 2007. (MetaPrinter,2008)

11. Recommendation 1: Advertisements and Promotions

15. Recommendation 2: Newspaper in Education

16. "The New York Times is the most comprehensive source available to my global studies students for accessing current international issues. No other source (print or electronic) comes close to The Times. The writing is superb." -- Dr. Robert Kovach, global studies teacher, Schreiber High School, Port Washington, N.Y. Source: New York Times The Foundation maintains a nationwide system of cooperation between newspapers and schools designed to enhance student achievement and appreciation of the First Amendment in a variety of subject areas through the use of newspapers and other media. The Foundation provides resources and training on using newspapers in schools and helps newspapers develop strategic plans for providing NIE services to educators. (Newspaper Association of America Foundation,2009). Mission Statement This chart shows the difference in standardized testing with students that were involved in journalism and students that were not. Students who were not involved in journalism also were the students who did not have newspaper programs in their schools. Newspapers in Education Source ACTNAA Foundation Introduction Company and Industry Analysis Recommendation: Advertising Recommendation: Education Future Outlook Recommendation: Internet

21. Recommendation 3: Increasing Internet Revenues

25. Prices for different subscriptions “ The Times’s site has about 13 million unique visitors each month, according to Nielsen/NetRatings, far more than any other newspaper site.” Plan to charge the same amount for online subscriptions as done in 2006 and 2007. Introduction Company and Industry Analysis Recommendation: Advertising Recommendation: Education Future Outlook Recommendation: Internet Subscriptions costs projected to grow 5% annually Source: NYTimes.com Source : NYTimes.com 7 day Monday-Friday Friday-Sunday Saturday-Sunday Online Times Reader 12 week subscription $63.60 $33.60 $34.20 $41.40 N/A N/A weekly 5.30 2.80 2.85 3.45 $3.99 N/A Monthly N/A N/A N/A N/A 7.99 14.95 Annual N/A N/A N/A N/A 49.99 174.95

27. Future Outlook

29. Brill, S. (2009). 'Culture of Free' Is Suicide. Battle Plans for Newspapers. Factiva. (2009). New Times Company Analysis. Retrieved february 5, 2009, from Factivia.com: http://global.factiva.com/pcs/default.aspx Frank Ahrens. (2005, February 20). Hard News. Retrieved February 9, 2009, from washingtonpost.com: http://www.washingtonpost.com/ac2/wp-dyn/A37138- 2005Feb19?language=printer Hoover's. (2009). New York TImes Co. Report. Retrieved February 5, 2009, from Hoover's Online: http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=rtrxcffryrhjry Isaacson, W. (2009, February 5). How to Save Your Newspaper . Retrieved February 9, 2009 from www.time.com: http://www.time.com/time/business/article/0,8599,1877191- Jesdanun, A. (2009, January 28). NY Times advertising revenue fell in December. Retrieved February 6, 2009, from CNews: http://cnews.canoe.ca/CNEWS/MediaNews/2009/01/28/8176321-ap.html 1,00.html Marketing Charts. (2009, January 30). Top 10 Print Media Websites - December 2008. Retrieved Febraury 5, 2009, from Marketing Charts: http://www.marketingcharts.com/print/top-10-print-media -websites-december-2008-7754/ Mergent. (2009). New York Times Co. Retrieved February 5, 2009, from Mergent Online: http://www.mergentonline.com/compdetail.asp?company=6012 Metaprinter. (2008). Newspaper Industry Market Cap 2007 vs. 2008 . Retrieved February 13, 2009, from Metaprinter: www.metaprinter.com/?p=822 Moore, E. (2006). Newspapers In Education . Retrieved February 9, 2009, from MakeKidsCount.com: http://images.google.com/imgres?imgurl=http://www.lubbockonline.com/mkc/nie/images /NIElogo.jpg&imgrefur National Association of American. (2008). Students who work on high school newspapers and yearbook:. Arlington: Newspaper Association of America Foundation. New York Times. (2007). Annual Financials for New York Times Company . Retrieved February 1, 2009, from Market Watch: http://www.marketwatch.com/tools/quotes/financials.asp?symb=nyt&sid=0&report=2&fr eq=1 New York Times. (2009, February 9). Student Connections . Retrieved February 9, 2009, from The Learning Network: http://www.nytimes.com/learning/index.html

30. New York Times Company. (2009). NEW YORK TIMES CO (NYSE: NYT) | Balance Sheet. Retrieved February 3, 2009, from Forbes.com: http://finapps.forbes.com/finapps/jsp/finance/compinfo/FinancialIndustrial.jsp?tkr=N YT&period=qtr Newspaper Association of America Foundation. (2009). Newspaper in Education . Retrieved February 9, 2009, from Newspaper Association of America Foundation: http://www.naafoundation.org/NewspaperInEducation.aspx Nytimes . (2009). Retrieved February 11, 2009, from http://www.nytimes.com/2007/09/18/business/media/18times.html?_r=1 PEJ Roundtable. (2006, July 24). Challenges to the Newspaper Industry . Retrieved February 9,2009, from Journalism.org: http://www.journalism.org/node/945 service, t. c. (2008). Frequently Asked Questions . Retrieved February 10, 2009, from www.Nytimes.com: http://www.nytimes.com/membercenter/faq/timesreader.html#timesreaderqa1 Templon, J. (2008, November 18). Indicator confirms crisis in newspaper industry. Retrieved February 12, 2009, from Medill Reports Chicago: http://news.medill.northwestern.edu/chicago/news.aspx?id=105983 The Day. (2009). What is NIE? Retrieved February 12, 2009, from TheDay.com: http://www.theday.com/theday/nie.aspx The New York Times Company . (n.d.). Retrieved February 11, 2009, from nytco: www.nytco.com Time . (2009). Retrieved February 11, 2009, from www.time.com: www.time.com

31. Appendices A

32. Appendices A

33. Appendices A