New York Times added more than 1 million digital subscribers in 2019
The New York Times broke records with digital subscriptions in 2019, but advertising revenue fell in the last three months of the year compared to the year before, according to its fourth quarter earnings report.
The company reported on Thursday it added more than 1 million digital-only subscriptions in 2019, its largest increase ever, for a total of 5,251,000 subscribers across its print and digital products. Its subscription revenue increased 4.5% whereas advertising revenues decreased 10.7% in the fourth quarter.
Most of the 342,000 net new digital-only subscriptions added in the fourth quarter went to the core news product, with the rest going to the Cooking and the Crosswords apps. The Times amassed 68,000 new Cooking app subscribers in the last quarter of 2019. The 232,000 net new subscriptions in the core news product marks a 35% increase from the same quarter last year.
Of the $460 million the company made in digital-only subscriptions last year, $426 million came from its core news product.
Thompson touted the Times’ “record year of digital growth” in January, saying the company had surpassed $800 million in annual digital revenue — a goal the paper had pledged to meet by the end of 2020. Total digital revenues were $800.8 million in 2019, up from $400 million in 2015.
Operating profit was $78.0 million in the fourth quarter of 2019, up from $74.7 million in the year prior. The paper reported a net income of $68.2 million, up from $57.0 million a year ago.
With a drop in advertising revenue, it was no surprise that the Times announced its first-ever price hike this week for its digital subscription service. The price is now $17 per month, up from $15. Mark Thompson, president and CEO of the New York Times Company, addressed the change in Thursday’s earnings report.
“We’ve not only seen nine years of rising prices, but also unprecedented investment by The Times in its journalism and digital offerings and we believe that our loyal subscribers know that their financial contribution plays an essential role in maintaining the quality, breadth and depth of the report they value so much,” Thompson said in a statement.
The company set a goal last year to reach 10 million subscriptions by 2025.
