Letter to Subscribers

Dear Loyal Readers,

Beginning September 1, 2009 The New York Times will adopt an entirely digital format. The monumental switch will result in more timely and accurate reporting, less waste, a lower carbon footprint and up to 25% savings off your current annual subscription.

What's more, we are so confident you will enjoy reading the New York Times on a state of the art digital reader, if you sign up now we will include an Amazon Kindle for just $250. That's a $100 savings!

This is a very exciting time and we are thrilled to be taking this important and exciting digital journey together.

Sincerely,

Arthur O. Sulzberger, Jr.
Chairman, The New York Times Company

Letter to Shareholders

Beginning September 1, 2009 The New York Times Company will close down printing operations and return to profitability. Our new income statement will look like this:

REVENUE (In Thousands)
Subscriptions 250,000 (500k subscribers x $10/week)
Advertising 20,000 (1B impressions $20CPM)
Total Revenue 270,000

EXPENSES
Reporting 120,000 (1,000 reporters @ 120k avg wage + benefits)
Sales, Admin & RE 54,000 (20% sales)
Kindle Promotion 50,000 (500k units @ $100 subsidy)
Total Expenses 224,000

PROFIT 46,000 (17.0% before taxes)