•  new delivery platforms may lead to pricing restrictions, the loss of distribution control and the loss of a direct  relationship with consumers; •  mobile devices, including smartphones and tablets, may present challenges for traditional display  advertising; and •  technology developed to block the display of advertising on websites could proliferate. Our advertising revenues are affected by numerous factors, including economic conditions, audience fragmentation  and evolving digital advertising market dynamics. The inability of the Company to retain and grow our subscriber base could adversely affect our results of operations  and business. P. 8 – THE NEW YORK TIMES COMPANY Responding to these changes may require significant investment. We may be limited in our ability to invest  funds and resources in digital products, services or opportunities, and we may incur research and development costs  in building, maintaining and evolving our technology infrastructure. We derive substantial revenues from the sale of advertising in The Times and INYT and in our digital products.  Advertising spending is sensitive to overall economic conditions, and our advertising revenues are adversely affected  if advertisers respond to weak and uneven economic conditions by reducing their budgets or shifting spending  patterns or priorities, or if they are forced to consolidate or cease operations. In determining whether to buy advertising, our advertisers will consider the demand for our products,  demographics of our reader base, advertising rates, results observed by advertisers, and alternative advertising  options. The increasing number of digital media options available, through social networking tools and news  aggregation websites, has expanded consumer choice significantly, resulting in audience fragmentation and increased  competition for advertising. Print advertising revenue represented approximately 73% of our total 2014 advertising revenues. However, the  advertising industry continues to experience a secular shift toward digital advertising, which is less expensive and  can offer more directly measurable returns than traditional print media. Because rates for digital advertising are  generally lower than for traditional print advertising, our digital advertising revenue may not replace in full print  advertising revenue lost as a result of the shift. In addition, growing consumer reliance on mobile devices exacerbates  rate pressure, as rates for digital advertising are generally lower on mobile devices than on personal computers.  Mobile advertising is a new and rapidly evolving market. If we are unable to grow revenues generated from mobile  devices through the development of advertising products that are accepted by marketers and consumers, our  advertising revenues will be adversely affected. Digital advertising networks and exchanges, real-time bidding and other programmatic buying channels that  allow advertisers to buy audiences at scale are also playing a more significant role in the advertising marketplace and  causing downward pricing pressure. In addition, increased inventory in the digital marketplace and evolving  standards for delivery of digital advertising, such as viewability, could adversely affect advertising revenues.  Circulation revenue comprises a majority of our total revenue. In recent years, we have experienced declining  print circulation volume. This is primarily due to increased competition from digital media formats and sources other  than traditional newspapers (which are often free to users), higher subscription rates and a growing preference  among certain consumers to receive all or a portion of their news from sources other than a newspaper. If we are  unable to offset continued revenue declines resulting from falling print circulation volume with revenue from home- delivery price increases, then our print circulation revenue will be adversely affected.  Digital subscriptions for content provided on NYTimes.com and other digital platforms generate substantial  revenue for us. Our future growth depends upon our ability to retain and grow our digital subscription base and  audience. To do so will require us to evolve our digital subscription model, address changing consumer requirements  and develop and improve our digital products while continuing to deliver high-quality journalism and content that is  interesting and relevant to our audience. There is no assurance that we will be able to successfully maintain and  increase our digital audience or that we will be able to do so without taking steps such as reducing pricing or  increasing costs that would affect our margin or profitability. 