Boston, MA 10/02/2014 (wallstreetpr) – The New York Times Company (NYSE:NYT)‘s efforts to tap the growing mobile app dedicated content through its NYT Opinion failed to make the expected impressions since it could not attract enough subscribers. As a result, the company has decided to shut down the digital product.
Failure of Digital Product
The company’s Executive Editor has written a letter to its staff that some of the new products launched with the aim of generating additional revenue failed to deliver the expected success; Reuters reported.
Its The New York Times Company (NYSE:NYT) Opinion product was offered at a $1.50 a week for an unlimited access of the New York Times. It later expanded opinion section to attract young and fresh readers, who were keen to access news through their smart devices. The product was launched only four months back.
The New York Times’ other digital product, NYT Now app, would be available only through smartphone. It has priced $2 a week to access its top stories and was accessible through online, as well as, iPhone. The product seemed to have struck a chord with the users of the younger generation. It has indicated that it would continue to market its Opinion section of its website through a separate subscription access.
Cut Jobs
The company was already facing falling revenue in print media as advertisers have migrated to digital media. As The New York Times Company (NYSE:NYT) opinion failed to generate predicted revenue, it has decided to eliminate 7.5% of the workforce in its newsroom. In effect, the company intends to exit 100 jobs besides other positions elsewhere.
This was not the first time that the New York Times has slashed its workforce. In the last more than six-year period, it has implemented several job cuts like 100 positions each in 2008 and 2009. Similarly, in early 2013, it has exited 30 more staff. The company’s staff strength was 1,330 at the end of the last year.
An analyst from Jefferies said that the latest move could be termed as a sense of stability as far as the digital business was concerned. However, he warned against too much of reading on the improvement of just one quarter.
