New York Times Survival
Historic Newspaper Family Determined to Face Downturn Challenges
Dec 14, 2008
The New York Times acknowledges that there are tough times ahead for itself and other major American Newspapers. Expecting a revenue slow down in the months ahead, management is positioning itself through expense cuts and other steps to meet the challenge. If its past history is an indication, the Times is expected to survive the present economic crisis. (Editor & Publisher, 12/9/08)
At the USB Global Media and Communication Conference held in New York City on December 9,2008, Janet Robinson, CEO of the New York Times Co. acknowledged the tough upcoming year and announced that the Ochs/Sulzbereger family had no plans to sell the company.
In a statement released by Robinson, she said "There is no doubt that 2009 will be among the most challenging years we have faced and more steps will be needed. We believe that through our revenue initiatives, expense cuts and the steps we are taking to improve our financial flexibility, the Times company is well positioned to weather the challenges next year is expect to bring"
New York Times Actions
The New York Times Company has cut its quarterly dividend by 75% freeing up some $100 million in cash and borrowed $225 million against the value of the headquarters building in Manhattan in order to meet a $400 million payment.
At the Global Media and Communication conference executives outlined how costs were being cut and consolidation of such areas as general administration, production, technology, circulation sales, and distribution was taking place. It is also decreasing the pension for non-union members as well as cutting back on newsprint as it shrinks eight of its regional papers.
Advertising Revenue Problems
New York Times executives warned of an online and print revenue slowdown in the coming months, especially that of display advertising. Ad rates are expect to remain flat in 2009 and the company has no plans to raise prices for subscriptions or newsstand editions.
The New York Times Future
Along with major newspapers across the United States, it is yet to be seen whether the New York Times has a future in its present form. The Ochs/Sulzberger family is determined to retain ownership of the the New York Times Company and continue publishing the newspaper in New York and the other regions where the Times is circulated.
Today the New York Times is facing daunting challenges as advertising revenue shrink and readership of print newspapers continues to decline The internet is attracting a wider audience and how the newspaper will adjust in the digital age may determine whether it will be able to continue its traditional, reporting intensive journalism which has set it apart in the past during a major economic downturn is yet to be seen.
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