The New York Times Surpasses 11 Million Subscribers
The New York Times has reported an impressive addition of approximately 260,000 paid digital subscribers in the third quarter of this year, achieving a significant milestone by surpassing 11 million total subscribers for the first time in its history. This announcement was made by the company on Monday.
In terms of financial performance, the company’s adjusted operating profit for the quarter, which spanned from July to September, saw a robust increase of 16.1 percent, reaching $104.2 million compared to $89.8 million during the same period last year. Overall revenue also experienced a positive trajectory, rising by 7 percent to $640.2 million when compared to the previous year’s figures.
The New York Times has set an ambitious target to reach 15 million subscribers by the end of 2027. As of the end of the third quarter, the company reported having 11.09 million subscribers, with 10.47 million specifically subscribing to digital products exclusively, excluding the print edition.
However, the day began with a significant event as early Monday, prior to the earnings announcement, the Times Tech Guild—representing over 600 of the company’s technology workers—initiated a strike. The union and the management are currently in negotiations concerning salary increases and various other workplace issues.
In a statement accompanying the earnings report, Meredith Kopit Levien, the president and chief executive officer of The New York Times Company, highlighted that over five million of the 11 million subscriptions are now for multiple Times products. These offerings encompass digital news, Cooking, Games, Wirecutter, and The Athletic. She emphasized, “We believe that this portfolio and our capacity to continuously enhance its value over time make The Times resilient in a shifting media landscape. It also positions us well to evolve into a larger and more profitable entity.”
Furthermore, digital subscription revenue surged by 14.2 percent compared to the previous year, while digital advertising revenue also saw a healthy increase of 8.8 percent year-over-year.
On the other hand, adjusted operating costs rose by 5.4 percent from last year, totaling $536 million, up from $508.6 million. This increase in operating expenses included $4.6 million allocated for the lawsuit filed by The Times against Microsoft and OpenAI, alleging that the companies unlawfully utilized copyrighted materials to train their generative AI chatbots.
In a noteworthy development, The Athletic, the sports news website acquired by The New York Times in 2022 for $550 million, recorded a quarterly profit for the first time since its acquisition. The Athletic’s adjusted operating profit for the third quarter rose to $2.6 million, a remarkable turnaround from a loss of $7.9 million during the same quarter last year. The company attributed this improvement to higher subscription and advertising revenues.
