Times Offers Details On 'Metered-Model' During Earnings Call
In the third quarter, digital ad revenues rose 14.6% at The New York Times Company -- from $68.3 million to $78.3 million -- which partially offset a 5.8% decrease in print ad revenues.
"Although we experienced marketplace volatility, it is clear that advertisers are responding to the opportunities to associate their brands with our high-quality journalism that engages audiences across multiple, and multiplying, platforms," Janet Robinson, president and CEO of The New York Times Co., said Tuesday.
All told, online ad revenues made up 27% of the company's total ad revenues in the third quarter. The company's digital businesses include NYTimes.com, About.com, Boston.com and other various sites. Total Internet revenues in the third quarter increased 13.3% to $89.4 million from $78.9 million.
Internet advertising revenues at the News Media Group increased 21.6% to $47.4 million from $39 million, which Times Co. attributed to strong growth in national display advertising. In total, Internet businesses accounted for 16.1% of the company's revenues for the third quarter of 2010 -- up from 13.9% in the third quarter of 2009.
"We remained focused on our comprehensive digital strategy, which includes increasing revenues from our digital sources, introducing new products and innovations that increase user engagement and extending our reach to new audiences across an array of devices," Robinson said.
Last week, for example, NYTimes.com launched its new app for the iPad, which offers access to more than 25 NYTimes.com sections -- all continuously updated throughout the day, Robinson notes.
According to Robinson, the company is making "significant" progress toward the upcoming launch of its pay model for NYTimes.com, which includes building the systems and infrastructure to support the commerce, customer service and product requirements of cross-platform strategy.
Meanwhile, the so-called "metered model" will allow readers who are referred from third-party sites such as blogs, social media networks and search engines access to specific content "without triggering the gate, which will preserve NYTimes.com's significant reach and advertising inventory," according to Robinson.
NYTCo. also recently announced that in the second half of 2011 The Boston Globe will launch a paid subscription Web site, BostonGlobe.com, and that Boston.com will remain free.
This two-brand strategy is expected to let the company better serve consumers and advertisers, while creating a second revenue stream.
Times Co.'s other New England Media Group property, the Worcester Telegram & Gazette, launched a paid model for its Web site during the third quarter.
Also, Times Co. recently announced that along with two other major publishers, it invested in Ongo Inc., a new venture that will introduce a service that will allow users to read and share digital news and information from multiple publishers.
About Group revenues increased 5.5% to $32.5 million from $30.8 million, as growth in display advertising was offset in part by lower cost-per-click advertising, according to the Times Co.
About Group operating costs increased 9.1% to $18.6 million from $17.0 million -- while excluding depreciation and amortization, operating costs increased 9.7% to $15.7 million from $14.3 million primarily because of higher compensation costs and marketing expenses.
Overall, revenues at NYTCo. decreased 2.7% in the third quarter of 2010 compared with the third quarter of 2009 as advertising and circulation revenues declined 1% and 4.8%, respectively.