New York Times adds 32,000 digital-only subscribers as profit falls

The New York Times

The New York Times added 32,000 digital subscribers in the second quarter of 2014, the company reported today. The number was driven by its new products — the NYT Now and NYT Opinion apps and the new Times Premier subscription tier.

Paid digital-only subscribers now total 831,000, the company said. Revenue from those subscriptions jumped 13.5 percent, to $41.7 million, from the same period a year ago. Total circulation revenue increased 1.4 percent.

The company’s total revenue fell 0.6 percent to $388.7 million. While digital ad revenue increased 3.4 percent, the Times reported, that was again not nearly enough to offset a print ad revenue decrease of 6.6 percent. Overall ad revenue declined 4.1 percent.

The Times’ adjusted operating profit dropped 21 percent.

In a statement, Times president and CEO Mark Thompson referenced the leaked innovation report from May:

“We also know that long-term digital revenue growth depends on the reach and depth of engagement of our digital audience. This was one of the key recommendations of our recently completed Innovation Report on the future of Times journalism. We plan to implement the recommendations of the report across the Company and believe that we can significantly grow our digital audience, which in turn will contribute to improved digital subscription and advertising monetization.”

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  • lunarcamelco

    Does this include readers such as myself who received a free 8-week digital subscription? I always assume such offers are meant to boost circulation numbers.

  • canardnoir

    So from a potential-on-the-go-metropolitan area readership of 12-15-20 million individuals, they’ve gleaned less than 1 million.

    So the Big Cheese says: “We also know that long-term digital revenue growth depends on the reach and depth of engagement of our digital audience…”
    That translates into some manner of collusion with the industry majors to better control the “free” online distribution of their news content, so that more will pay for the digital distribution. And that would appear to make the expansion of 4G access to shift demand to the streaming outlets – those already engaged in electronic video distribution and more often for “free”.
    Subsequently, I would expect and collusion in restraint of trade to cause some going-digital-news outlets a bit of a legal problem with Uncle Sugar? That is, if their biased coverage isn’t tilted in the proper direction…