New York Times digital revenue surpasses print revenue for first time
05 August 2020
For the first time in its nearly 170-year history, the New York Times made more money from digital products than it did from its print newspaper during a three-month quarterly earnings period, the Times announced Wednesday.
Why it matters: It's a huge milestone for The Gray Lady, which six years ago published a digital "Innovation Report" that detailed the paper's shortcomings in adjusting its business to embrace the digital world.
By the numbers: The Times made $185.5 million in revenue from digital products — both digital subscriptions and ads — during the second quarter, compared to $175.4 million in print revenue.
- It also added 669,000 net new digital subscribers, its largest quarterly subscriber gain ever. The Times now has over 6.5 million subscribers, the vast majority of which are digital-only subscribers.
Be smart: While digital news products have become widely accepted by consumers in the past few years, they've often been harder to monetize because digital advertising margins are much lower than print advertising margins.
- For example, a typical New York Times digital banner ad costs $19.99 for every 1,000 impressions, or eyeballs that the ad is served to. A typical print ad costs well over $100 for every 1,000 impressions.
The big picture: To offset that imbalance, the Times has pushed aggressively to accrue digital subscribers. Last quarter, the Times reported a record number of new subscriptions and said it finally hit its years-long goal of making $800,000 in annual digital revenue.
Between the lines: The Times has been investing in new digital products and talent that it hopes can help propel the company's digital evolution even further.
- The paper recently named COO Meredith Kopit Levien as its new CEO come September, replacing Mark Thompson.
- Levien said in an interview with Axios last month that her goal is to help establish the Times as a world-class digital and tech company.
- Last October, the Times hired former Times product veteran Alex Hardiman as the company's head of product, reporting to Levien.
- The paper announced last month that it is acquiring Serial Productions, the maker of the hit true-crime podcast "Serial," in an effort to bolster its audio ambitions. It recently added a set of new staffers to help translate its Opinion journalism into audio.
- The Times has also doubled down on its TV and film ambitions to help market its products to new digital subscribers.
Yes, but: The company hasn't been immune to the advertising headwinds that have been exacerbated by the pandemic.
- In June, the Times said in an internal memo that it was laying off 68 members of its staff, mostly within its advertising division.
- Many media companies have announced layoffs, furloughs and cuts to salaries and benefits as a result of the advertising market collapse.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.