New York Times Exploring Alternative Business Models
By Nat Worden
Of DOW JONES NEWSWIRES
Janet Robinson, chief executive of the New York Times Co. (NYT), said Tuesday the struggling publisher is exploring alternative, online business models for newspapers, such as subscription models.
During a conference call with analysts following a disappointing first-quarter earnings release, Robinson said the company has reviewed business models used by 30 different online publishing organizations. It concluded its current advertising-based model has been the most successful strategy for generating online revenue.
Robinson also noted that New York Times has experimented unsuccessfully twice with online subscription models. Its most recent attempt came in 2005 with TimesSelect, which put some of the company’s content behind a pay wall. TimesSelect was later canceled in order to increase revenue.
Robinson’s comments came as some publishing industry veterans have argued that publishers should use online subscription models to generate revenue as the newspaper industry flounders amid the rise of the Internet and the economic recession.
New York Times shares recently fell 70 cents, or 12%, to $5.15.
-By Nat Worden, Dow Jones Newswires; 201-938-5216; firstname.lastname@example.org