BUSINESS MODEL CHANGE OF PRINTED NEWSPAPERS IN THE INTERNET AGE: THE NEW YORK TIMES CASE

Abstract

The diffusion of broadband internet services has brought about substantial changes in the business environment of traditional newspaper companies. Until then, they had sustained their operations by selling advertisements in their printed newspapers. Still, its readers shifted their habits and began to consume the online news provided by an increasing number of competitors. Consequently, managers had to change the business models of traditional newspaper companies through choices focused on meeting the controllers' short and medium-term demands. This paper analyzes the situation experienced by the New York Times, whose managers had to make choices about the new configuration of the company's business model, adjusting it both to the environment and the expectations of readers and controllers. We collected the data from the New York Times reports published between 2003 and 2012. Subsequently, we analyzed these data through the integrated activities framework and the theory of modal aspects. The results indicate that the managers changed the company's business model through choices that aimed to meet the short and medium-term demands of the controllers. Hence, the new model had limitations that would need further changes shortly.