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NY Times (NYT) Registers Record Digital Revenues in 2019

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The New York Times Company (NYT - Free Report) has been making concerted efforts to lower dependency on traditional advertising and focus on digitization to adapt to the changing face of the multiplatform media universe. Rapid digitization in the core areas of advertising, subscriptions and sales, printing, and distribution services are turning out to be a major source of revenues.

The company’s strategic endeavors in this direction facilitated this diversified media conglomerate to attain its set target of doubling digital revenues a year ahead of schedule. The company passed its goal of $800 million of annual digital revenues in 2019. We note that the company’s digital revenues were around $400 million in 2015.

Certainly, changing consumer preferences and innovative technologies have altered the way in which news is offered and consumed. Readers’ preference for accessing news online, mostly free, has made the industry’s print-advertising model increasingly redundant. As readers started thronging the Internet for news, advertisers followed suit, and so did the newspaper companies.

Trimmed print operations paved the way for online publications that led to the development of a pay-and-read model, as adopted by The New York Times Company in 2011. Last year, the company added more than 1 million net digital subscriptions, the highest annual run-rate since the launch of the digital model. The company now has more than 5 million total subscriptions, comprising 3.4 million core news subscriptions, more than 300,000 to NYT Cooking and 600,000 to NYT Crossword, as well as nearly 900,000 print subscriptions.

Following the news, shares of this Zacks Rank #3 (Hold) company have increased 4.6% during the trading session on Jan 14. Notably, the stock has gained 14.8% compared with industry’s growth of 8% in the past three months.

Wrapping Up

The New York Times Company has been diversifying business, adding new revenue streams, realigning cost structure and streamlining operations to increase efficiencies. The company is not only gearing up to become an optimum destination for news and information but is also focusing on lifestyle products and services.

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