The New York Times Company

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According to the company’s recent financial reports, it had improved profits and increase its revenue. A significant percentage of the revenue came from advertisements and the digital subscription initiative which reduced the number of printed copies thereby reducing the operating profit. The increase in gross profit margin is an indication that the company’s business model is working despite realizing a decline in the total revenue in the third quarter of 2016. The company launched the digital subscription initiative which lured many customers and led to increasing in the number of subscriptions. This increase is also reflected in the revenues. Therefore, its business model will remain sound for as long as more customers get involved and the company keeps posting positive results. The company is continuously creating new products for clients which improve the customer base; this justifies further that the business model will remain sound. (The New York Times Company quarterly earning report, 2016, retrieved from www.nytco.com/investors) The company’s revenue stream from advertisements is declining. The third quarter print advertising revenue of the company decreased 18.5 percent as result of the reduction in display advertising. The total advertising revenue is declining despite the slight increase in the digital advertising revenue. This is because the digital advertising revenue takes a small percentage of the total advertising revenue, therefore; the influence of the increase in the digital advertising revenue has a minor effect on the overall decline of the total advertising revenue. (The New York Times Company quarterly earning report, 2016, retrieved from

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