Go to www.nytco.com/investors and check whether The New York Times ' recent financial reports indicate that its business model is working. Does the company's business model remain sound as more consumers go to the Internet to find general information and stay abreast of current events and news stories? Is its revenue stream from advertisements growing or declining? Are its subscription fees and circulation increasing or declining?

The responses offered by the students may include information such as the following. The New York Times Company is a leading media company that includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers and more than 50 Web sites. The company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

The student should note that the company's annual revenue has declined steadily over the last five reporting periods from $2.32B in fiscal 2011 to $3.18B in fiscal 2007, while net income has fluxuated greatly over the period with $107M in 2010, a loss of $57.8M in 2008, and a recent loss of $39.67 in 2011. This illustrates a reducing value proposition (revenue) as well as a ineffective and unpredictable profit formula (earnings). The conclusion the student should reach is that the business model is not working effectively.

Can the company's business model remain sound as more consumers go to the Internet to find general information and stay abreast of current events and news stories? Is its revenue stream from advertisements growing or declining? Are its subscription fees and circulation increasing or declining?