“People thought it was a document staring into the future. But it was a culture document and it was just about trying to create the conditions for people to stop saying no to change.” — A. G. Sulzberger, Chairman of The New York Times Company (2024 Reuters Memorial Lecture.)
In 2014, The New York Times found itself at a precipice. The publication of its for-internal-eyes-only “Innovation Report” laid bare the challenges it faced in the digital age. The report was a damning self-assessment, highlighting a stark reality: The Times was struggling to adapt to the rapid changes in media consumption, losing ground to more agile, digital-first competitors. It seemed destined to join the 70% of companies unable to pivot and reinvent themselves in the face of disruptive change.
However, this story took a different turn. The New York Times refused to accept a fate of decline and obsolescence. Instead, it embarked on one of the most significant transformations in its (ahem) storied history. Recognising the existential threat posed by the internet’s disruption of the advertising market, The Times shifted its focus. No longer would advertising revenue be the business’s backbone; instead, the future would be built on the bedrock of subscription revenue.
This strategic pivot was not simply a change in revenue focus but a complete overhaul of the company’s operational ethos. The year following the Innovation Report, The Times’s leadership released “Our Path Forward,” a document that outlined a bold vision. It aimed to transform its business model so that digital revenue would surpass print revenue, setting an ambitious target to double digital revenue to $800 million within five years to sustain its global journalistic endeavours.
The transformation was multifaceted. It meant reimagining the product experience to make a subscription as indispensable as Netflix or Amazon Prime, expanding global reach, innovating in digital advertising, and restructuring the organisation to prioritise digital platforms and reader experience. The Times accelerated its digital experimentation, embracing visual and data-driven storytelling, exploring new media formats like video and podcasts, and launching digital subscriptions like NY Times Cooking and Games.
Governance also evolved, with digital integration at the core of the organisation. Cross-functional teams brought together journalism, product, and engineering perspectives. New ventures and acquisitions, including NYT Wirecutter, Wordle and The Athletic, broadened The Times’s digital footprint. Looking ahead, The New York Times has set its sights on becoming “the essential subscription for every English-speaking person seeking to understand and engage with the world.” It’s a vision that reflects the remarkable journey from the brink of obsolescence to a model of digital transformation success.
The transformation extended to the very culture of The Times, shifting from a risk-averse mindset to one embracing innovation and learning from failures. This cultural shift was crucial and highlighted the unique position of The Times in employing journalists skilled in coding, a testament to the evolving nature of journalism itself.
The results speak volumes. The Times reached its $800 million digital revenue target a year early and surpassed its subscription goals well ahead of schedule. Digital revenue eclipsed print revenue, and subscriptions outpaced advertising, marking a successful reinvention. The stock price soared, reflecting investor confidence in the company’s new direction.
I love the way the NYT (publicly available) strategy concludes with a human touch: “Inside The Times, we will do this important work with a sense of common purpose, care for each other, and a culture that fuels our mission, business and people.”
For more on this remarkable transformation, check out the latest episode of The Innovation Show with David Rogers on his brilliant book, “The Digital Transformation Roadmap”, hot off the digital press.
You can read the full NYT case by downloading a free chapter from David’s book here: https://bit.ly/DX-chapter
https://medium.com/media/116484da9fd93840bb195337625f8f06/href
It was the Worst of Times, Then the Best of Times: Turmoil and Turnaround at The Times was originally published in The Thursday Thought on Medium, where people are continuing the conversation by highlighting and responding to this story.
The post It was the Worst of Times, Then the Best of Times: Turmoil and Turnaround at The Times appeared first on The Innovation Show.