Concept Ratio Used And Analysis Of New York Times Financial Performance

Profitability ratio analysis for New York Times

Company report 2017 first quarter result shows that new York times has experienced high growth as per the annual report company aimed to increase the digital subscribers in the 2017 and the first quarter shows that company is truly growing as per the planned growth “Q1 the single best quarter for the subscriber growth in our history” with addition of 308000 new digital news subscribers in its family and the company has experienced the 19 percent growth in digital revenues.in the first quarter print advertising revenue decreased by 17.9%  whereas digital advertising revenue increased 18.9% and the operating cost increased in the first quarter of 2017 to $ 367.4 million compared to $351.6 million in the first quarter of 2016 due to high marketing cost (NYT Annual Report, 2017).

First quarter report shows that New York Times has successfully achieved its objective and the company is moving on the right track of growth toward digital subscription, although the operating cost in first quarter is high due to aggressive marketing for persuading more and more customers, but the company aims to decrease the subsequent cost in next quarter. (New York Times, 2017)

In the new environment of increasing digitalization company has to continuously grow with new ideas and new techniques and in this new environment two most critical porter’s five forces which are critical to New York Times is (Porter, 1998)

• Threat of new entrants:

In the era of digitalization and the increasing demand of the customers new entrant can any time enter the market and can seep the demand of techno savvy people, thus the critical company should focus is to safeguard itself by creating huge competitive edge and creating the fort of differentiation so that no one can cross the wall and sweep the target audience and decreases the customer base for the company.

Company can tackle this threat of new entrant by focusing on bringing innovation and by focusing the unmet needs of customer, by decreasing the operating cost in order to achieve the economies of scale because it is very difficult for the new entrant to enter the market where strong players keep raising its standards regularly.

High level of competition in the market tends to decrease the price of the product or service offered and that tends to decrease the profitability of the organization, as increase in the competition increases the barraging power of customers and in this era of digitalization every company would aim to raise its standards and would try to meet the unmet needs of customers.

New York Times could aim to differentiate itself and keep itself apart from other competitors company can concentrate on decreasing the operating per unit cost in order to achieve the competitive advantage both of this things can help New York Times to tackle the rivalry among the competitors company can also collaborate among its competitors to focus on increasing the market share rather than increasing competing for the small market.

Market segmentation id the most essential part of a marketing strategy that helps in achieving the systematic growth. New York Times

“To bring quality information about the whole world in all the spheres with total integrity and with the aim of increasing the digital subscribers”.

2015 study shows that habit of watching TV is changing in youth they don’t prefer watching legacy TV channels they prefer live streaming or on demand shows most young youth do not want to see the written script dramatic monotonous shows they want everything new (KPMG, 2016)

Mobile designs and virtual reality and increasing technological up gradation every day is shifting the youth from traditional media formats be it TV channels or newspaper industry, customers want everything in their pocket they don’t want to search their news in the crowd of news thy want filtered result for everything don’t want to invest their time on the things they are not interested in.

New formats for storytelling: viewers don’t want to view the traditional TV channels with prewritten dramatic scripts they prefer everything on live streaming which give them the courtesy to watch anything at any time as per their comfort rather than on TV or newspaper scheduling.

Readers don’t want to invest time on the news which are manipulated for raising the sensations readers prefer to read the actual news which are happening worldwide they don’t want to read the issues which actually not happened but just for the purpose of profitability is been manipulated and actual news is been sidelined

References:

Annual Reports, (2017). New York Times Annual Report available on https://www.annualreports.com/Company/new-york-times

KPMG, (2016). The future is now streaming, available on https://home.kpmg.com/content/dam/kpmg/pdf/2016/04/The-Future-now-streaming.pdf

New York Times, (2017). First Quarter Company reports available on https://investors.nytco.com/investors/investor-news/investor-news-details/2017/The-New-York-Times-Company-Reports-2017-First-Quarter-Results/default.aspx

Porter, M, (1998), Competitive advantage- creating and sustaining superior performance, Simon and Schuster publisher, New York (Republished in, 2008)