The public announcement to eliminate all ad revenue was a strategic marketing move. It sent a clear message to the market: if NBR relied 100% on subscriptions, the content must be exceptionally valuable and worth the high price point, reinforcing its premium positioning and justifying the cost.
Because NBR's revenue comes solely from subscriptions, it views password sharing as direct revenue theft, not a minor infraction. The publisher pursues legal action against corporate clients for copyright breach, aiming to set a precedent and aggressively defend its only business model.
The decision to abandon ads wasn't driven by falling revenue, but by an ethical epiphany. The CEO realized his clients were inefficiently buying print ads when more measurable options existed. He no longer wanted to facilitate that "lazy" spending, feeling it bordered on fraudulent.
Instead of maximizing ad slots, NBR removed all online ad inventory except the top banner. It then pitched a premium, simplified package to top clients for a high monthly fee, creating artificial scarcity and focusing on high-value partnerships. This secured over $1M in pre-sold, recurring revenue.
NBR eliminated all opinion columns, believing customers shouldn't pay to read someone else's point of view. The strategy is to provide only factual reporting with deep context, empowering subscribers to form their own informed decisions and reinforcing the core value of its high-priced product.
By stipulating a 6-month minimum contract with a 3-month cancellation clause, NBR created high friction for advertisers to leave. When clients called to cancel due to budget cuts, the 3-month notice period often made them reconsider and cut costs elsewhere instead, dramatically reducing churn.
Facing the 2008 financial crisis just after being hired as sales director, Todd Scott proactively took operational control of NBR, scrutinizing every dollar and managing staff who previously reported only to the owner. This extreme ownership earned him a 30% profit-sharing deal 15 months later.
When remote work broke corporate VPN access for NBR's "all you can eat" IP licenses, the company seized the opportunity. It pivoted to per-seat group subscriptions, gaining more control over revenue and scalability, while competitors who later adopted the old IP model got stuck with it.