Digitalization have change how we interact with the world. Our habits have changed; we don’t longer like to receive information as we did 10 or 15 years ago:
- We don’t like unilateral information. Gone are the days of old newspaper with whom nobody could interact. Today, people want to share their opinions, be involved in a multilateral conversation.
- Wewant to know the last events exactly when they happened. If there was a huge political scandal, if some company found the cure for a horrible disease… we want to know, and we want to know it now. That means that we don’t longer want to wait for the printed newspaper to arrive tomorrow morning.
- We want to get informed only in the topics that we like. Today, everything happens fast. We don’t have enough time to do the things that we like, or to spend time with the people we care about. We don’t want to lose our time in things that don’t add us value. The 100-pages newspaper with a Sport, National, International, and Culture section, does not capture the interest of the person who only wants to know about the economic situation of the country.
These trends have put a lot of pressure in the news and media industry, whose product offer was totally misaligned with what people was asking for. Not only the printed newspaper didn’t allow people to have the last customized information, but also the digital offering was not closing any gap. It was just a simple copy of its printed version.
These changes also generated a reduction on the entry barriers in the industry. Previously, a company needed to invest millions of dollars to participate in the business (from the purchase of printers to the payment of publishing and advertising teams). Nowadays anyone with $10 can have a successful blog.
Large news and media companies face fierce competition in the digital media. New players are engaging the public with a completely new approach. Google offer immediate customized content, Facebook and Twitter offer the possibility to participate in massive trending discussions, and Blogs allows readers to be part of a community.
One company that suffered the impact of digitization was the New York Times. The company had its valuation peak in 2002, and maintained it until 2004. However, between 2004 and 2009, the company’s stock suffered a steep decline, going from a valuation of $39 to $3.9. 
To deal with these new reality, NYT defined a series of initiatives that affected its business and its operating model.
NYT shift its content distribution through printed media towards the use of three platforms: print, web and mobile. Even when the company launched NYTimes.com in 1996, they only started charging customers for the content provided on the website and the mobile app in 2011. 
The second change was related to revenues sources. NYT distribute its incomes between circulation and advertising. A decade ago, advertising was their primary source of revenues, nevertheless, since 2012 circulation have accounted for more than 50% of the same.  The reasons behind this are:
- Circulation revenues are increasing because of the growth in digital subscription and the price increase in printed copies (imposed to counteract the decline in printed copies sold)
- Advertising revenues are decreasing even when digital advertising revenues are increasing. This is because the cost of digital advertisement is significantly lower than the one of printed advertisement.
The first goal of the company was to increase their target audience using a new discovery approach (don’t have a copy of the printed version online, but something that customers can relate to), promotion (leverage social media to engage readers) and engagement with the customers (generate a two-way relationship).
The second was to increase the collaboration between the newsroom and the business units focusing on the reader experience. That allowed to increase the creativity and insights of the newsroom team. 
At the end of 2015 NYT announced a new digital strategy memo, based on simplifying subscriptions to reach younger population, improve the quality of advertisements, optimize channels (print, web and mobile), and reach new international audiences to increase paying subscriber base. 
One additional action that NYT should do is to simplify its structure. They are now in an industry with narrow margins, where assuring low costs is critical. Also, because the reading of printed newspaper is heavily decreasing, I would recommend to decrease resources allocation in that segment to focus in digital platforms.
Even though all of NYT’s efforts have had a positive impact, in my opinion, the company will never reach its 2002 levels. Digitization changed the dynamic in which news and media competes, increasing the number and variety of competitors, and pushing down revenue.
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 The New York Times Company – Investors – Financials – 2012 Annual Report & Form 10-K . 2016. The New York Times Company – Investors – Financials – Annual Reports . [ONLINE] Available at: http://s1.q4cdn.com/156149269/files/doc_financils/annual/2012NYTannual.pdf [Accessed 17 November 2016].
 New York Times, New York Times, 2014. Report. The New York Times Innovation Report, [Online]. 1, 3-96. Available at: http://www.presscouncil.org.au/uploads/52321/ufiles/The_New_York_Times_Innovation_Report_-_March_2014.pdf [Accessed 16 November 2016].
 Nieman Lab. 2016. 4 takeaways from The New York Times’ new digital strategy memo » Nieman Journalism Lab. [ONLINE] Available at: http://www.niemanlab.org/2015/10/4-takeaways-from-the-new-york-times-new-digital-strategy-memo/. [Accessed 17 November 2016].