The New York Times Co Hoping For Online Success With Digital Subscribers
Advertising revenue is dropping while The New York Times Co. continues to look for their new CEO. The increase in digital subscribers has continued, however, their fourth quarter numbers dropped to $58.9 million from $67.1 million one year ago.
The company is looking for changes in the new year. Long-term Chief Executive Janet Robinson left the company in December and their digital leader, Martin Nisenholtz, retired leaving a gap in their decision making team. Although publisher Arthur Sulzberger Jr. is taking up the slack due to Robinson’s departure, they are still looking for a replacement.
Sulzberger was quoted as saying “As for the CEO search, it is in its early stages, as our board seeks to find the appropriate executive with digital and brand-building experience to help guide this company and its long-term growth strategy.”
Today’s technological world has decreased the need for print advertising options as well as print circulation, so The New York Times Co and other newspapers have been experiencing the results. Print advertising revenue was down 7.8%. However, thanks to digital subscribers circulation revenue increased by 5% to reach $241.6 million.
The end of the third quarter showed 324,000 digital subscribers while at the end of the fourth quarter the number had risen to 390,000 digital subscribers to The New York Times and International Herald Tribune. Plus the Boston Globe added 16,000 digital subscribers.
Readers are flocking to online news sites, a lot of which are free. The New York Times Co began a full access site to the paper in March and are seeing results. In a statement Sulzberger released “In 2011 we made significant strides in our strategy to transform and rebalance our company.” Building a digital subscription base and continuing their digital advertising were part of this plan.
Much of the decline in revenue was due to the division of About Group’s performance. Decline in both display advertising and cost-per-click advertising dropped their revenue by 25.9%.
Income attributable to shareholders dropped from $0.44 per share from the fourth quarter of 2010 to $0.39 per share for 2011. Plans are underway to sell part of the Time Co. stake in Fenway Sports Group and to sell its Regional Media Group for $143 million.
The New York Times Co is looking forward to the new quarter and expects advertising revenue to remain about the same, but expects circulation revenue due to digital subscribers to increase.
Julie MacKenzie has written 208 articles on EpostMedia.
