10 August 2017
Earlier this year we covered how digital technology is disrupting the publications industry and in particular, The New York Times’s transformational strategy. Now after several months, the publication has just had one of its strongest quarters in recent years with digital at the forefront.
The New York Times released their second-quarter results that showed rising digital advertising revenue and new online subscriptions offsetting continued declines in print advertising. This is a true milestone in the 166-year old publisher’s history. The Times announced their total revenues at $407.1 million for the second quarter of 2017, a 9.2% increase compared to the same period last year and well above Wall Street predictions. In two years the publication has been able to double their online subscription numbers to a total of 2.3 million, 69% more than in Q2 2016. This is the first time digital subscriptions have brought in more revenue than print advertisements, a pinnacle point in the company’s pursuit of digital transformation evolving away from print.
Digital advertising revenue rose 23% in the second quarter to $55 million while print advertising brought in $77 million, 11% lower than Q2 2016. This is to be expected as with most newspapers print is on the decline, but The Times’s digital ad revenue nearly made up for the loss. U.S. President Donald Trump on numerous occasions has tweeted to say The New York Times is “failing” however these buoyant financial results say otherwise…
The Failing New York Times has a new publisher, A.G. Sulzberger. Congratulations! Here is a last chance for the Times to fulfill the vision of its Founder, Adolph Ochs, “to give the news impartially, without fear or FAVOR, regardless of party, sect, or interests involved.” Get...
— Donald J. Trump (@realDonaldTrump) January 2, 2018
Mark Thompson, Chief Executive Officer of The New York Times Company commented:
“We had another strong quarter in which we grew revenue and profitability and made significant changes within the organization to ensure that the acceleration of our digital business continues in the long term.
“We believe that more and more people are prepared to pay for high quality in-depth journalism that helps them make sense of the world.”
The New York Times is committed to transforming their digital business model by re-bundling and customising services to better serve their existing customers. By playing on the offensive, companies can ward off digital disruption and create transformational strategies rather than risk losing by playing on the defence. Rees Draper Wright are specialists in this area and can guide you through the transformational process to ensure your business is industry leading. Contact us today to see how we can help.