Contemporary Strategy Analysis, 10th Edition

Case 11The New York Times: Adapting to the Digital Revolution*

On January 1, 2018, 37‐year‐old A.G. Sulzberger succeeded his father, Arthur Ochs Sulzberger, as chairman of the New York Times Company (NYT). He is the sixth member of the Ochs/Sulzberger family to lead the newspaper since it was purchased by Adolph Ochs in 1896.

Yet, this apparent reverence for family tradition was not matched by conservatism in the company's strategy and operational management. Indeed, A.G. Sulzberger was the primary architect of the digital strategy that had shaken the “Gray Lady”—as the Times was affectionately known—to her very foundations.

In 2012, the prospects for the New York Times Company (NYT) were bleak. In common with most of the world's newspaper companies, revenues were in steep decline and the company was losing money. Most commentators were pessimistic about the company's future. Henry Blodget of Business Insider predicted a continuing decline in the company's revenues as news readership and advertising moved online.¹ Eric Jackson of Ironfire Capital LLC predicted that declining advertising revenues, rising pension costs, and limits on further cuts in operating costs, would mean that the NYT would be unable to continue as a standalone business.²

For over a decade, the NYT had been experimenting with different online business models, while at the same time selling assets and cutting costs. However, growth in revenues from digital advertising had failed to cover the shrinking revenues ...