Author Topic: New York Times’ Profits Slide 52% as Digital Subscriptions Slow  (Read 327 times)

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Offline rangerrebew

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New York Times’ Profits Slide 52% as Digital Subscriptions Slow

Don Irvine  —   August 1, 2014 


The New York Times’ efforts to focus on digital over print may finally be running out of steam. The company reported that profits in the second quarter slid 52%, as digital subscription growth slowed and advertising revenue continued to sag.

Digital subscriptions, which had grown to 799,000 at the end of the first quarter, from zero in 2011, increased by 32,000 in the second quarter. But that was less than the 39,000 increase in the first quarter.

Any growth would normally be a positive sign in an industry that has been buffeted by readers abandoning print in droves, and a prolonged advertising slump, but in the case of the Times, the growth underscored the longer-term issues the paper is facing.

The growth in the second quarter was largely driven by new subscriptions to the NYT Now option, which costs just $8 a month compared to the $15 plans that most subscribers had been opting for previously. This has resulted in a lower revenue mix and slowed overall circulation revenue to a paltry 1.4% increase in the quarter, down from 2% in the first quarter.

What really killed profits at the Times was the 6.6% drop in advertising revenues, which more than wiped out any circulation revenue increase.

This is not lost on Times president and chief executive officer Mark Thompson, who said the company still has more work to do to deliver long-term sustainable revenue growth.

But how they will do that is a big question mark. The company has done far better than I predicted it would with regard to building a substantial digital subscriber base, but as with all things, the demand is finite. The slowing growth was inevitable as the “low hanging fruit” was picked off, providing much needed financial relief. But now the Times faces a much tougher task of convincing people why they should pay for news that can be obtained elsewhere for free.

With growth slowing and advertising still sliding—the company predicted a decrease in the third quarter in the mid single digits—the Times still needs to figure out how to remain relevant in a fast-changing news landscape, which won’t be easy to do in the face of fierce competition.

http://www.aim.org/don-irvine-blog/new-york-times-profits-slide-52-as-digital-subscriptions-slow/
« Last Edit: August 05, 2014, 01:20:50 PM by rangerrebew »
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Offline Fishrrman

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #1 on: August 05, 2014, 09:48:05 PM »
Title:
[[ New York Times’ Profits Slide 52%...]]

I can't express how heartened I am by this news.

May the slide continue !!!

Offline rangerrebew

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #2 on: August 06, 2014, 04:01:17 PM »
I doubt it has anything to do with "digital subscriptions" and more to their left wing bias. :tongue2:
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Offline jmyrlefuller

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #3 on: August 06, 2014, 09:19:50 PM »
Wait, the Times was turning a profit?
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Online Oceander

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #4 on: August 06, 2014, 09:55:39 PM »
Title:
[[ New York Times’ Profits Slide 52%...]]

I can't express how heartened I am by this news.

May the slide continue !!!

Absolutely!!!!

Trump does not represent the will of the people.  If we really wanted to respect the decision of "the people," then Clinton would be the president-elect, not Trump, for the simple reason that she won the popular vote.

Online Oceander

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #5 on: August 06, 2014, 09:55:56 PM »
Wait, the Times was turning a profit?

Like a prostitute turns tricks.
Trump does not represent the will of the people.  If we really wanted to respect the decision of "the people," then Clinton would be the president-elect, not Trump, for the simple reason that she won the popular vote.

Offline rangerrebew

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Re: New York Times’ Profits Slide 52% as Digital Subscriptions Slow
« Reply #6 on: August 09, 2014, 12:11:38 PM »
Wait, the Times was turning a profit?

Like Obama balances the budget.
America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves. Abraham Lincoln


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