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The New York Times: A Journey To “unsubscribe”
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Impressive Print Starts With Big Ideas When brands want to create never before in print, they turn to T Brand Studio, the New York Times content studio and experts to bring the full potential of our print platform to life. CUSTOM CONTENT, Feb 8 () – The New York Times Co ( NYT.N ) beat Wall Street estimates for quarterly profit on Wednesday as more people signed up for its digital subscription packages, offsetting a slowdown in ad sales and helping the newspaper to disclose a $250 million share repurchase.
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The Times in recent years has embarked on a combination push, combining its core news with digital content, from podcasts to recipes and games, in hopes of earning more revenue from readers.
The company’s shares rose 10% to $40 as the publisher added 240,000 digital-only subscribers in the fourth quarter, compared with 180,000 in the third quarter.
For the year, the paper added more than a million subscribers, the second most since 2020, when the pandemic dominated the headlines. It has a target of 15 million subscribers by 2027.
“With each passing quarter, we saw more evidence that there is strong demand for a bundle of news and lifestyle products,” said CEO Meredith Kopit Levien.
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Activist investor ValueAct Capital Management, which has more than a 7% stake in the company, has pushed the publisher to aggressively offer its all-access digital package that includes product review site Wirecutter and sports news site The Athletic.
In the December quarter, The New York Times’ revenue was $667.5 million, beating analysts’ estimates of $646.4 million, according to Refinitiv. Adjusted earnings of 59 cents per share were also above estimates of 43 cents.
Digital ad revenue was flat in the quarter and the company expects the measure to decline in the “low single digits” in the first quarter, mirroring the weakness seen at other ad-dependent companies such as Snap Inc ( SNAP.N ) .
The buyback announced Wednesday is for New York Times Class A shares, and the company said it plans to return 50 percent of free cash flow to shareholders in the form of dividends and share buybacks over the next three to five years. Ring Car Cam Review iOS 16.3.1 Update ‘Ant-Man 3’ Review ‘Ted Lasso’ Season 3 Release Date PlayStation VR 2 Teardown Epic Galaxy S23 Deal Da Vinci’s Forgotten Experiments Probiotic Foods for Gut Health
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Former contributor Don Reisinger is a tech columnist who has covered everything from HDTVs to PCs to Flowbee clippers. In addition to his work with , Don’s work has been featured in a variety of other publications, including PC World and a number of Ziff-Davis publications.
The New York Times has cut in half the number of free online articles readers are allowed to access per month.
The publishing company announced today that starting in April, readers will be able to access 10 stories for free each month. The New York Times previously allowed its readers to access 20 free stories online. The move is a not-so-subtle attempt on the Times’ part to nudge more of its readers into digital subscriptions.
These paid digital subscriptions have proven somewhat popular, the Times reported. In the last year since they have been available, 454,000 subscriptions have been purchased to access the New York Times and the International Herald Tribune.
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“Last year was a transformative year for The Times as we began charging for digital access to our content,” said The New York Times Co. chairman and CEO. Arthur Sulzberger Jr. in a statement. “Today, nearly half a million people now pay for digital content from The Times and IHT.”
The New York Times offers several subscription options to customers, depending on how they want to access their content. The cheapest plan, at $15 a month, includes access to the Times website and smartphone apps. A $20 plan includes access to the website and tablet apps. An all-access pass, which includes the ability to read Times content both online and on tablets and smartphones, costs $35 a month.
When The Times launched its digital subscription packages last year, the company was met with controversy as some readers said they would stop reading the paper. Others, however, were happy with the added access.
That said, the company is offering an introductory price of 99 cents on its subscriptions for the first four weeks. It’s not immediately clear how many people stay with those plans when the fees go up.
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However, it is clear that newspapers must do something. Last month, Mark Perry, a professor at the University of Michigan, revealed that newspaper advertising revenue has fallen off the cliff. In 2011, total newspaper advertising revenue is believed to have reached $20.7 billion, the lowest point since 1951, when an inflation-adjusted $19.5 billion was spent on advertising.
But perhaps the real question is whether digital subscriptions can stop the bleeding. The Times reported last year that it had 281,000 paid digital subscribers after its service had been available for just three months, meaning it added fewer than 200,000 subscribers in the nine months that followed. It doesn’t matter where you live or how big your local newspaper’s circulation is: The average price for a digital newspaper subscription is $2.31 a week, according to a new report from the American Press Institute.
API researcher Tracy M. Cook looked at digital subscription pricing at 100 U.S. newspapers in October 2017. The median price across all newspapers: $2.31 a week, or about $10 a month, or $120 a year. (This is actually slightly down from a 2016 API reference linked
Weekly digital newspaper subscription price at $3.11 per week, across 77 newspapers. For this new data set, the average price was $2.44/week.
Newspaper New York Times (usa). Newspapers In Usa. Friday’s Edition, December 18 Of 2020. Kiosko.net
The average price excludes special introductory offers, as well as bundles like the Washington Post’s partnerships with Amazon and Hulu and the New York Times with Spotify. Cook also notes that digital newspaper pricing tends to fluctuate quite a bit, and it’s often unclear how long “short-term promotion” prices will last.
According to this study, pricing did not really depend on market size or a paper’s circulation. What seemed to matter was the “trials to buy” the papers themselves, as well as the ownership of the papers. Some companies, such as Tronc and McClatchy, standardized their prices across all the papers they owned. for other companies, such as Gannett, it varied.
In the case of Gannett, for example, which owned 19 percent of the papers studied: “Most Gannett sites (14 of 19) charge an introductory price of $0.99 for the first month of access before increasing rates to 4 $.99 per month. Four sites charge an annual fee of $29. One quoted a monthly price of $9.99 with no introductory offer.”
Since the publishers say they’re based on market testing and not other factors, I wonder if the report suggests that readers have come to see an “appropriate digital subscription price” for most papers around $10 a month — whether you’re talking about news or otherwise. kind of content — and whether many publishers are just looking at other types of digital subscriptions and taking their lead. Spotify Premium is also $9.99/month, for example. Hulu is $7.99/month and Netflix’s standard package is $10.99 per month. All of these services offer access to a much wider variety of content than a single newspaper subscription. in this context, the fact that people seem willing to pay
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