The New York Times Company is a leading media company that publishes popular newspapers The New York Times, The International Herald Tribune, The Boston Globe and 15 other daily newspapers. NYT owns approximately 30 websites, including NYTimes.com, Boston.com and About.com. The Company’s revenues for 2006 were $3.3 billion. The Company has sold off its Broadcast Media Group and radio stations to focus on print and digital media.
Like Gannett and McClatchy, NYT is also experiencing falling advertisement and circulation revenues. Total Company revenues from continuing operations increased 0.6% in August 2007 compared with the same month a year ago. Advertising revenues for the News Media Group decreased 4.6%. The fall in advertising revenues was mainly due to the fall in retail and classified advertising (real estate, help-wanted and automotive). Circulation revenues for the News Media Group grew 3.6% in August 2007 over the corresponding period in the previous year.
In this series, we will analyze NYT’s business strategy in some detail.
In total, digital businesses generated $80.9 million or more than 10% of NYT’s revenues in 2Q07. The Internet ad revenues included in the News Media Group rose 28.2% in August 2007 due to growth in both display and classified advertising. Advertising revenues at the About Group (which includes About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com) rose 27.4% in August 2007.
August’s growth in revenues was due to increases in both display and cost-per-click advertising. Display advertising increased primarily because of strength in the retail, financial services and entertainment categories. The acquisition of ConsumerSearch.com in May 2007 and UCompareHealthCare.com in March 2007 also facilitated the jump in the advertising revenues.
According to Nielsen//NetRatings, The New York Times Company had the 11th largest presence on the Web, with 44.2 million unique visitors in the US, in August 2007, up approximately 11% from 39.9 million unique visitors in August 2006. NYTimes.com is the most visited newspaper site in the U.S. with an audience of 13.1 million unique users (August 2007 – Nielsen//NetRatings).
Like its peers in the media business NYT is also realigning its business and in order to focus on its core business, the Company divested its Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million in May 2007.
NYT is in a transition phase, moving from print media to the online platform. The Company is focusing on the digital media and has made a number of acquisitions and strategic investments in this space. The Company is aggressively pursuing its online strategy and has launched a number of blogs (like Caucus, The Lede, City Room, DealBook, etc.), better personalization tools like My Times and TimesFile, and other attractions like mobile features, podcasts, videos, etc. to attract and establish itself as a leading player in the online media space.
The Company is looking at launching a number of online properties (T Style) in the coming quarters. NYT recently made the content previously available through TimesSelect, including online access to 23 news and opinion columnists, personalization tools, access to the Times archives back to 1987 and more, free. This will enable the company to attract more visitors. NYT is also looking at more acquisitions in the online space that are synergistic to its business and is working on redesigning and branding of its current online properties.