The Times’s attitude toward profitability didn’t really become a critical issue until the late 1960s, when rising labor costs and declining circulation forced the paper to alter course. The company began an effort to diversify its holdings, buying a firm that sold teaching aids; a small publishing outfit; and later Cowles, a magazine publisher. But the biggest change—in fact, perhaps the most significant cultural shift in the company’s history—came in 1969 when the decision was made to go public. The matter was presented as one of basic survival. “At the time the company had no financial stability,” says James Goodale, who was general counsel for the Times Company. “The unions were a constant threat and if they struck, you really weren’t sure you’d come out alive.” There was a hitch, though. In order for the stock to be listed on an exchange, the A shares would have be given some voting rights (from the start,Wall Street was uneasy with the dual-stock structure of the paper). The problem was resolved by giving A shareholders the right to elect three directors (now four).
The Times Company’s lack of emphasis on profitability caused the stock to drop swiftly, from an initial price of $42 a share to $16, within the first few years it was publicly traded. The paper was producing some of its best journalism during this time, including its courageous stand in the Pentagon Papers case, for which it won a Pulitzer Prize. But Wall Street was unimpressed. Things didn’t get much better as New York slid into a financial crisis and the nation fell into a recession in the mid-1970s, cutting Help Wanted ad revenue in half.
Two things helped turn the tide in the late 1970s. First, the paper gained greater control of its labor costs, getting its unions to agree to begin automation of printing and production methods in exchange for job security. Second, the paper overhauled its layout, ditching its traditional two-section format in favor of a four-section paper, adding a weekend section, and expanding its business section. The makeover gave the paper much of its modern footprint, with additions like Science Times as well as sections devoted to lifestyle and home decorating. The combination of tighter cost controls and the addition of ad-friendly content dramatically enhanced the paper’s financial fortunes. For the next quarter-century, with some setbacks, the paper enjoyed strong profits and a healthy stock price. In 1993, the Times Company used some of its enhanced financial clout to make its deal for The Boston Globe. By that time, critics were already questioning whether newspapers were a forward-looking investment, and whether media companies should instead look at more aggressive diversification to offset erosion in circulation, ad pressures presented by the expansion of cable television, and the rise of a newfangled thing called the Internet.
The early 1990s also marked the emergence of Arthur Ochs Sulzberger Jr. at the company. After stints with The Associated Press in London and on the staff of The Raleigh Times in North Carolina, the younger Sulzberger joined The New York Times in the fall of 1978 as a twenty-seven-year-old reporter in the Washington bureau. Sulzberger became the first member of the family to methodically work his way up the ladder, both on the editorial and business sides. Though there was some question whether he would be the one to emerge among the thirteen members of the so-called “cousins” generation (the offspring of the four grandchildren of Adolph Ochs), in retrospect his coronation seems predestined. “Here is to Arthur—long may he reign!” read the opening line of a poem penned in his honor by his grandfather on the day he was born, and for much of his life, Arthur was seen as the crown prince in the family.

"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