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1/ @nytimes reported earnings today. Growth was anemic, just 0.2% YoY in 4Q.
Not great on the surface. Dig one level deeper and there’s a lot to like. $NYT
Time for a thread
Not great on the surface. Dig one level deeper and there’s a lot to like. $NYT
Time for a thread
2/ Digital subs are the @nytimes future. In 4Q 2020:
- Digital sub revenue grew 37% YoY
- 627,000 new subs in the 4Q, up over 50% YoY
Why the gap in growth rates between revenue and subs? New subs get promotional pricing. $NYT
- Digital sub revenue grew 37% YoY
- 627,000 new subs in the 4Q, up over 50% YoY
Why the gap in growth rates between revenue and subs? New subs get promotional pricing. $NYT
3/ @nytimes is a business model in flux. The company is transitioning from ads to subscriptions and print to digital. In 2020:
- Digital revenue exceeded print revenue for the first time
- Digital sub revenue became the largest revenue stream
- Digital revenue exceeded print revenue for the first time
- Digital sub revenue became the largest revenue stream
4/ Ads remain challenged, particularly print. This explains the paltry 0.2% YoY revenue growth.
As the ad business shrinks, digital subs revenue growth will start to pull total growth rates up. $NYT expects digital sub revenue to grow 35-40% YoY in 1Q 2021.
As the ad business shrinks, digital subs revenue growth will start to pull total growth rates up. $NYT expects digital sub revenue to grow 35-40% YoY in 1Q 2021.
5/ Pricing is a reason for optimism on @nytimes digital sub growth. $NYT
- New subs have promo pricing of $2/week for their first year
- Full price is $17 per month
- 1.6M subs are graduating to higher pricing in 2021
- An additional 500,000 tenured subs will see increases
- New subs have promo pricing of $2/week for their first year
- Full price is $17 per month
- 1.6M subs are graduating to higher pricing in 2021
- An additional 500,000 tenured subs will see increases
6/ Changing gears, @nytimes broke out podcast revenue for the first time. In 2020, NYT had $36M in podcast revenue, up from $29M in 2019.
Kudos, @mikiebarb!
Here’s more on the NYT podcast opportunity https://kjlabuz.substack.com/p/55-michael-barbaro-and-the-podcast
Kudos, @mikiebarb!
Here’s more on the NYT podcast opportunity
https://kjlabuz.substack.com/p/55-michael-barbaro-and-the-podcast
7/ For more on the business, here’s a great deep dive from @MineSafety https://minesafetydisclosures.com/blog/newyorktimes
