New York Times Co's Sulzberger tells shareholders of plans to "explore a new online financial strategy"

Posted by Emma Heald on April 24, 2009 at 2:33 PM

New York Times Company chairman Arthur Sulzberger yesterday told shareholders that the group's papers will be "exploring a new online financial strategy" in coming months. He also was clear that there were no plans to take the company private.

"We continue to take a fresh, hard and deep look at various subscription, purchase and micropayment models," he said, according to a text of his prepared remarks seen by Editor & Publisher. "We will have more to say on this subject at a future date." Change does not seem to be coming in a hurry, however. He described how the company has analysed the business models of more than 30 different organisations to find those which are most effective at generating online revenue and concluded that "the advertising model we have used at NYTimes.com has generated more revenue than the vast majority of other organizations, including some that are much larger than our site."

His words clearly echo those of president and CEO Janet Robinson, who spoke about the same issue during a Quarter 1 earnings call. Sulzberger praised her warmly as an "inspirational leader" during these difficult times. The paper has cut jobs and salaries in recent weeks.

Sulzberger repeatedly declared that the quality of the Times Co newspapers' journalism would be the key to any strategy for success, according to Editor & Publisher. The signature paper just proved the high standard of its reporting by winning five Pulitzer Prizes, and Sulzberger claimed that what "advertisers find so compelling" is the paper's quality journalism and its audience's commitment as a result of this.

There have been many rumours over the past few months that the New York Times might once again try to charge for online content. The paper put some of its content behind a pay wall back in 2007, creating a premium area of its website called TimesSelect. New start-up Journalism Online aims to facilitate charging readers for online content, with plans to offer both joint subscription and micropayment possibilities. Co-founder Steve Brill revealed that he has spoken to the Times, but no details have been released. Undoubtedly, however, it is become increasingly likely that at least some major players will be added to the list of those who charge for a portion of their online content.

Source: Editor & Publisher