NEW YORK – The New York Times added 300,000 paid digital subscribers in the fourth quarter of 2023, the company said, helping to push annual revenue for digital subscriptions above US$1 billion (S$1.35 billion) for the first time.
The Times on Feb 7 reported total revenue of US$676.2 million in the last three months of 2023, essentially flat compared with a year earlier. Adjusted operating profit increased 8.5 per cent, to US$154 million.
It was “a strong year for the Times that showcased the power of our strategy to be the essential subscription for every curious person seeking to understand and engage with the world”, said Ms Meredith Kopit Levien, the company’s president and chief executive, in a statement.
In recent years, the company has focused on pushing a bundle of products to subscribers: its core news report and games such as Wordle and Spelling Bee; its product review site Wirecutter; a recipe app; and The Athletic, its sports news website.
The Athletic, which the Times bought two years ago for US$550 million, continued to lose money in the fourth quarter. But its operating loss shrank to US$4.4 million, from US$9.6 million a year earlier. Revenue at The Athletic grew 31.3 per cent to US$38.5 million.
At the end of 2023, the Times had 10.36 million subscribers, 9.7 million of them digital-only. The company has a stated goal of 15 million subscribers by the end of 2027.
The company said it had US$709.2 million in cash and marketable securities at the end of 2023.
Much of the news media industry is in turmoil, with publishers such as The Los Angeles Times, The Washington Post and Business Insider laying off journalists or offering buyouts in recent months. Headwinds include a decline in readers who reach news sites through social media platforms, less user interest in news, and a tough market for advertising.
Advertising was a weak spot for the Times in the fourth quarter. Total advertising revenue decreased 8.4 per cent to US$164.1 million. Digital advertising fell 3.7 per cent and print advertising 16.2 per cent, and the company said it expected further declines in the first three months of 2024.
The number of print subscribers has continued to decline. There were 730,000 at the end of 2022 and 660,000 by the end of 2023.
The company has said it faces a growing challenge from generative artificial intelligence (AI).
In late 2023, the Times sued OpenAI and Microsoft on a claim of copyright infringement, arguing that articles published by the Times were used to train automated chatbots that now compete with the news organisation. OpenAI has argued that the suit is without merit, and Microsoft’s CEO has questioned the merits of the case. NYTIMES
