Another key to success is finding ways to push the Times out to a variety of new technology platforms. Solving that problem falls, in large part, to Michael Zimbalist, who runs the company’s fourteen-person research-and-development department. Zimbalist’s group is constantly monitoring how people use the Times. For example, he notes that while “smart” phones comprise only 6 percent of the cellular market, 33 percent of mobile readers of the Times use smart phones. “That tells us we can experiment more with stuff that works with smart phones,” Zimbalist says. In the future, he adds, the Times will have to be as much a media-technology company as it is a pure media company, rapidly developing new products to take advantage of emerging platforms. Already his team entered and won a design contest sponsored by Google, coming up with “ShifD,” which automatically links your phone to your computer, telling it what you were reading and shifting it over to the other device. “We really are a tech company,” says Zimbalist. “We have seventy-five developers at NYTimes.com with thirty more open positions to fill.”
Of course, all that technology doesn’t come cheap. In an era of fiscal austerity and higher borrowing costs, the logical way to fund the revolution is by selling assets that no longer fit. The Times started down that road in 2006 by unloading its joint venture with the Discovery Channel and its entire Broadcasting Group in 2007, as well as a radio station, for $715 million. That generated some needed cash, but also concentrated the company even more in the troubled newspaper segment, something Sulzberger doesn’t flinch at. In fact, when explaining why the stock of The Washington Post Company hasn’t been driven down as much as that of the Times, Sulzberger said it was partly because the Post is “no longer really a newspaper company,” a reference to the fact that it draws a majority of its revenue from Kaplan, Inc., an educational-publishing venture. Sulzberger, for better or worse, is intent on having the Times Company remain a newspaper-driven enterprise and by dumping broadcasting, he doubled down on his bet.
Whatever one thinks about the Times Company’s decision to get out of broadcasting, it was in keeping with the push by many large shareholders to sell off noncore assets. The pressure to sell more will likely only increase now that Harbinger and Firebrand have seats on the Times board. Among the candidates that remain to be shopped around are the Times Company’s fourteen regional newspapers, as well as the International Herald Tribune; its minority stake in the Boston Red Sox and the New England Sports Network; its 58 percent ownership of the new Times Building; its paper mill holdings; and, of course, The Boston Globe and related entities. (Asked whether any of those items was sporting a sales tag, CEO Janet Robinson would only say that “the company is always reviewing its portfolio.”) Money from these putative sales would then presumably be used to acquire digital assets, but exactly what those assets might be is also not clear. Though the Times has made some minor online acquisitions recently (Calorie-Count.com, anyone?), there doesn’t seem to be any About-level deals in the offing. And though on the one hand Sulzberger sees the changes the company faces as the most profound in the history of the business, on the other, he still believes in the Times’s basic model: quality journalism + quality readers = quality advertising. “It has been our formula for success for decades. We believe it will remain so in this digital era,” he told shareholders in April.
Maybe. Sulzberger clearly sees the challenges facing the paper as part of a long continuum. Just as the Times saved itself in years past by going from two to four to six sections, introducing color, and becoming a national newspaper, so too can the digital transformation resolve this generation’s problems. Still, those past changes were evolutionary, not revolutionary, and while the Times may be, as Sulzberger termed it, a “uniquely resilient” institution, its recent struggles have come during years of relative prosperity.

"Arthur Sulzberger Jr. is racing to transform the embattled New York Times for the digital age. Is he up to the job?"
I'm curious. Why didn't CJR try to answer the question? And if you cannot answer it, why ask it?
Posted by Jay Rosen
on Thu 17 Jul 2008 at 07:03 PM
The times commitment to quality may have made it the Newspaper of record in the U.S., and seen it through some tough times, but Quality & the NYT have ceased to go together for some time. Quality at the NYT is not just dead, but dead and stinking to high heaven! You no longer turn to the NYT for news, you turn to its front page to be outraged or titilated, depending on our viewpoint, with the latest Bush derangement editorial, Obamamania propaganda, or unsubstantiated slur against former favorite McCain. The NYT may find a financial niche that will let it survive on the left wing fringes...but other than that its time to throw on the dirt.
Posted by valwayne on Sun 20 Jul 2008 at 04:19 PM
I have never seen so many words used to say so little.
Posted by Emmett Wright Jr, on Sun 20 Jul 2008 at 04:52 PM
Maybe they can get the 'World Workers Party' to pass out their anti American and anti Christian values gibberish to the fish mongers and owners of birds? -- Or maybe they could reduce their carbon footprint and just go away
Posted by charles higgins on Sun 20 Jul 2008 at 05:20 PM
what bothers me is that the NYT that i grew up with no longer exists. my NYT was known for attempting to provide its readers with ALL sides of an issue with little or no pre-emphasis or bias, leaving it up to the reader to formulate his or her own opinions based on the facts presented by the reporter(s). in this new "internet age" of advocacy journalism, fueled by innumerable blogs and cable news channels, all vying for my undivided attention, i don't feel that the Times should have given up its earlier attempts to be a reasonably objective arbiter of the news. it's a real mistake to try and compete (either by being more "focused" or more "confrontational" than your competition only compromises and devalues the excellence that the NYT was once known for. to my mind, this constricting of "all the news that [was once] fit to print" into what i call "point-of-view" reporting is a bigger factor in the Times' slide into a discouraging and all too often nondescript irrelevance than anything described in this article.
Posted by Detmar Finke on Sun 20 Jul 2008 at 05:23 PM
Despite a lot of recent coverage of the Times story, what I have not seen is a detailed examination of their online efforts. They receive mention above, but there is more to be said.
The Times produced some pioneering, amazing interactive graphics during the primaries. They produce slide shows, videos, journalist backstories on video, blogs, commenting, e-mail newsletters. There are a lot of subtleties to getting these features right. The Times does great work in all these areas.
Clearly they are pumping a lot of resources into these efforts. This kind of innovation does not come cheap. I think the Times' online efforts deserve closer examination, and credit, than I am seeing in the press. Perhaps the press is more inclined to look at the content of the traditional journalism than the innovations in presentation and visualization that the Times is bringing about.
Posted by Kelsey on Sun 20 Jul 2008 at 06:04 PM
I, as well as many of my friends and co-workers, have stopped our subscriptions and reading of the times mainly because it has become an opinion sheet in just about every facet of its coverage. If one needs info hard and clear, we must go elsewhere.
This piece doesn't address the issue at all. Odd (hello?)
Posted by Tor Lars on Sun 20 Jul 2008 at 07:25 PM
An article about the NYTimes which makes no mention of its contemporary savior, Abe Rosenthal, is woefully incomplete or uninformed.
Posted by Arnold Beichman on Sun 20 Jul 2008 at 08:19 PM
I hope this article was not written by a Columbia J-school student. If so, one need look no further than our college campuses for a root cause.
Posted by T Taylor on Sun 20 Jul 2008 at 08:36 PM
The basic model for the Times changed a long time ago. When you move the editorial page to page 1 and push stories like why women can't play Augusta, you tend to lose a lot of credibility.
Crappy journalism + fewer readers =
decreasing ad revenues
Posted by Elroy Jetson on Sun 20 Jul 2008 at 08:41 PM
I used to be a NYT reader, along with a couple of other papers. Like many people, years ago I started to migrate to the Internet for my news, as it was easier to read several sources in one setting.
The NYT went far-leftist in it's reporting several years ago and I simply do not trust it's "journalism". The paper lies. I hope it goes out of business. And, I advise my friends and associates that way.
If the paper wants to declare it 'solidarity' with moveon.org, or kos, that would be acceptable, but to pretend to be a world-class newspaper is adding to the lies it publishes.
Posted by BillSanford on Sun 20 Jul 2008 at 10:06 PM
So will democrats criticize their flagship propaganda medium for "outsourcing" and sending operations overseas????
Posted by Tai Pan 91021 on Mon 21 Jul 2008 at 01:17 AM
...because of its commitment to quality journalism...
LOL.
Posted by iykwimaityd on Mon 21 Jul 2008 at 02:52 AM
Not to pile on, but a BBB- rating from Standard & Poor's is not "one notch above junk-bond status," it is junk bond status.
Posted by Anna Turtle on Wed 6 Aug 2008 at 05:03 PM