This week president and general manager of the New York Times Scott Heekin-Canedy is answering questions from readers on the newspaper's website. Among other issues, the readers' questions so far have led Heekin-Canedy to address newspapers' downward spiral, charging for online news, and the Times' future formats and platforms.

Heekin-Canedy says that though he believes print newspapers will continue, in the face of the challenges facing newspapers today--declining print advertising and circulation--the Times must "grow [its] digital profits quickly enough to outpace print declines." While this will be a challenge, he asserts his optimism about the future, claiming that Times content still claims a large and engaged audience. Though the Times has been affected by the changing media equation propelled by the Internet and the economic recession, he asserts, "Nevertheless, whether in print or online, when advertisers are venturing into the market with their messages, they are very likely to advertise with The Times -- in print, online or both -- in order to reach this premier audience."

Regarding charging for online content, Heekin-Canedy says that NYTimes.com could be converted to a paid content site but that this change would greatly diminish the site as an advertising venue. He refers to senior vice president of digital operations for the NYTCo, Martin Nisenholz, who said in "Talk to the Times" that the Times must increase revenue from the user without sacrificing its high rate ad pages that generate much of its current profit. "As we develop new pay-for-content ideas, we must carefully balance our ability to generate meaningful dollars from both sources," he says.

As for the digital future of the Times, Heekin-Canedy says, "My colleagues and I see The Times not as a newsPAPER but instead as a news provider." Again, he quotes Nisenholz who says that as Times readers engage in multiple news platforms, the Times must be prepared to serve its customers wherever and whenever they choose and that he expects growth in mobile advertising in the coming months and years. Heekin-Canedy mentions the variety of distribution formats coming to the market--Kindle, Sony Reader, the IPhone--saying, "What might be the future format? I think the answer is that it will be your choice. We expect to provide formats to support these devices if there is customer demand."

Despite the Times' 3.55% drop in circulation this year, its many lay offs and pay cuts, and the elimination of sections, it is faring no worse than other US papers and in fact, better than most. Heekin-Canedy speaks optimistically about the future and Nisenholz identifies what needs to be accomplished, but neither actually outlined a viable business model. The Times seems poised to make more technological leaps and foray into the mobile market, but how will they accomplish this if they do not have a plan for gaining advertising revenue?

Source: New York Times