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| Version 1 | Version 2 |
|---|---|
| New York Times to introduce a cheaper digital package to lure subscribers | New York Times to introduce a cheaper digital package to lure subscribers |
| (5 months later) | |
| The New York Times boosted circulation revenue by almost 7% in the first quarter as its pay wall strategy helped offset print declines, but is set to introduce a cheaper sub-$15 a month digital package to reinvigorate a subscriber growth rate which has slumped by 50%. | The New York Times boosted circulation revenue by almost 7% in the first quarter as its pay wall strategy helped offset print declines, but is set to introduce a cheaper sub-$15 a month digital package to reinvigorate a subscriber growth rate which has slumped by 50%. |
| The group reported a steep fall in advertising revenue in the first quarter, down 11% year-on-year to $191m, while the success of its digital paywall and increasing cover prices led to a 6.5% circulation revenue increase to $241m. | The group reported a steep fall in advertising revenue in the first quarter, down 11% year-on-year to $191m, while the success of its digital paywall and increasing cover prices led to a 6.5% circulation revenue increase to $241m. |
| The group reported that 708,000 paid digital subscriptions at the end of the first quarter, an increase of 40,000 compared to the end of December. | The group reported that 708,000 paid digital subscriptions at the end of the first quarter, an increase of 40,000 compared to the end of December. |
| However growth is dramatically slowing, with almost double the number, 76,000, added in the previous quarter. | However growth is dramatically slowing, with almost double the number, 76,000, added in the previous quarter. |
| Mark Thompson, chief executive of The New York Times Company, praised the "continued strength" of its digital subscription strategy while also unveiling plans for a new "lower-priced paid product … for consumers looking for an efficient way to stay informed". | Mark Thompson, chief executive of The New York Times Company, praised the "continued strength" of its digital subscription strategy while also unveiling plans for a new "lower-priced paid product … for consumers looking for an efficient way to stay informed". |
| Thompson said that research has shown that there is "very strong demand" for cheaper digital products from the NYT. | Thompson said that research has shown that there is "very strong demand" for cheaper digital products from the NYT. |
| The company has not set the price for what will be a range of new digital products, however they will have to come in under $15 per four weeks to be cheaper than existing packages. | The company has not set the price for what will be a range of new digital products, however they will have to come in under $15 per four weeks to be cheaper than existing packages. |
| The NYT has a range of digital products – from $15 to $35 – covering access from computers, tablets and smartphones. | The NYT has a range of digital products – from $15 to $35 – covering access from computers, tablets and smartphones. |
| "We want to deepen our relationship with our existing loyal customers, but we also want to use a wider family of New York Times products to reach new customers both here and around the world." | "We want to deepen our relationship with our existing loyal customers, but we also want to use a wider family of New York Times products to reach new customers both here and around the world." |
| "We mean to grow our business by launching new products and services based on the unique strengths of Times journalism," said Thompson. | "We mean to grow our business by launching new products and services based on the unique strengths of Times journalism," said Thompson. |
| New products under development will also include cheaply priced offerings "in specific content areas such as politics, technology, opinion, the arts and food". | New products under development will also include cheaply priced offerings "in specific content areas such as politics, technology, opinion, the arts and food". |
| NYT is also planning to offer an "enhanced tier" that will offer "extras" to print subscribers and those on its top $35 "all digital access" package. | NYT is also planning to offer an "enhanced tier" that will offer "extras" to print subscribers and those on its top $35 "all digital access" package. |
| "Subscribers will likely be offered access to Times events and the ability to gift subscriptions and provide full family access, among other incentives," the company said. | "Subscribers will likely be offered access to Times events and the ability to gift subscriptions and provide full family access, among other incentives," the company said. |
| Another strand of Thompson's new digital strategy is to try to sell more goods and services to readers, with the planned areas of focus e-commerce and gaming products. | Another strand of Thompson's new digital strategy is to try to sell more goods and services to readers, with the planned areas of focus e-commerce and gaming products. |
| "The initiatives we are announcing today should be seen as a significant first step in our effort to put The New York Times Company on a path to sustainable growth," said Thompson. | "The initiatives we are announcing today should be seen as a significant first step in our effort to put The New York Times Company on a path to sustainable growth," said Thompson. |
| The group reported that total revenues fell 2% to $465.9m in the first quarter this year. | The group reported that total revenues fell 2% to $465.9m in the first quarter this year. |
| Operating profit rose to $22.8m, up from $12.6m in the same quarter a year ago. Net income plummeted 93% from $42m to $2.8m. | Operating profit rose to $22.8m, up from $12.6m in the same quarter a year ago. Net income plummeted 93% from $42m to $2.8m. |
| However this was mostly due to the loss of more than $33m of income from assets that have been disposed of such as About.com, which it sold to Barry Diller's IAC/InterActive Corp last year fro $300m cash. | However this was mostly due to the loss of more than $33m of income from assets that have been disposed of such as About.com, which it sold to Barry Diller's IAC/InterActive Corp last year fro $300m cash. |
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