Leading diversified media company, The New York Times Company (NYT - Analyst Report) is on a global online expansion spree. The company recently expressed its willingness to further explore the Brazilian market by launching a new Brazilian site in order to serve the knowledgeable people of the region. The site is supposed to come into effect in 2013.
The Portuguese site will feature about 30-40 articles a day on national, foreign and arts topics, along with the few stories that interest the local readers. The site will have around one-third of the total contents specifically designed for Brazilian readers written by Brazilian editors and locally hired journalists.
The online site will provide various facilities to its Brazilian readers like translation of The Times famous journals from English to Portuguese along with articles written by local writers hired by the company. However, the graphics and photographs will be introduced later on the site.
Management believes that Brazil is one of the ideal places to expand its online reach. It also believes that with this expansion, the company is in sync with its plans of expanding digitally worldwide.
Previously in this year, The Times has launched a Chinese site cn.nytimes.com to attract readers from the country’s growing middle-class. Moreover, the company’s News Services Division offers articles, graphics and photographs to over 1,400 newspapers, magazines and Websites in about 100 countries.
The New York Times Company has been adding diverse revenue streams, which include a circulation pricing model and a pay-and-read model for NYTimes.com, the International Herald Tribune and BostonGlobe.com, to make it less susceptible to the economic conditions.
The company is also adapting to the changing face of the multiplatform media universe, which currently includes mobile, social media networks and reader application products in its portfolio.
The New York Times, which competes with Gannett Company Inc. (GCI), currently maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains ‘Neutral’.