“Watershed Moment” For NY Times As Digital Revenue Surpasses Print Revenue For The First Time
A ‘watershed moment” is a turning point; the exact moment that changes the direction of a dynamic; a dividing point; from which things will never be the same. All of these descriptives perfectly illustrate the momentous event that just occurred. In a time where journalism and the media business in general needs positive news, CEO Mark Thompson of The New York Times Co. reported this major milestone as they reported their 2nd quarter financial results.
First, let’s look at the facts, and then discuss what this really means.
- Digital Subscriptions and Digital Ads generated $185.5M in revenue, versus $175.4M in Print Revenue.
- Digital Revenue was up over 48% over last years same quarter, DURING A PANDEMIC!
- NY Times added a net 669,000 new Digital Subscribers during the 2nd Quarter.
- YTD Stock Price is up 44%!
Technology has changed everything, including the way we all now have access to news, events, politics, sports, lifestyle, medicine….just about every topic. The REAL question here is why has 95% of major media companies and newspapers been S L O W to embrace the obvious transformation of their industries, and the inevitable transition to digital?
At the risk of being both obvious and blunt, there is no gray area here….there are WINNERS and there are LOSERS. The WINNERS have embraced digital and the increased revenue opportunities supported by both subscription revenue and digital advertising strategies. And their stock prices show it. The LOSERS….well, basically everyone that HASN’T embraced digital…..they are either bankrupt, on the brink of insolvency, or seeing their stocks at all time lows….even making some formerly revered companies “penny stocks.”
Let’s ask some simple questions. When was the last time you waited to “read the paper” to find an answer you were looking for? Are newspapers NOT yesterday’s news? Are newspapers “green friendly?” Are newspapers making a profit? Can you “click” on an article and email it to an associate? Can you watch a video in a newspaper? Now, let’s not confuse NEWSPAPERS versus JOURNALISM. We desperately need quality journalists; without them, there is no relevant content; and of course no viewers/visitors. We are simply comparing the “delivery” of the content. And the present and future of these industries are DIGITAL.
Months ago, I had an interesting discussion with a media business broker who I respect very much. He stated, “If you ask 10 CEO’s at major media companies their definition of “digital” you will get 10 different answers.” Sadly, they and their employees and shareholders are paying a dear price. Well, I’ve got some definitions for them:
- THE FUTURE
We all see how technology is changing just about everything; most industries have embraced the changes, and it is very puzzling why the major media and newsprint industry have lagged so far behind. This truly is a watershed moment for the NY Times, the newspaper industry, anyone in the content generating industry, and journalism in general. Journalism has a solid future; their content will simply be displayed online and NOT in a newspaper in your driveway.
It is also a major moment for “digital real estate,” meaning the domain industry. Here is the simple formula for market domination:
- QUALITY RELEVANT INTERESTING CONTENT + BEST AUTHORITY CREDIBLE DOMAIN NAME = SUCCESS
A few years ago, all that we have been saying could have been dismissed as being “opinion.” No longer….these are now facts. Proven facts. Major takeaways here? Media and newspaper companies…..use The NY Times as an example and roadmap to your present and future strategies. And owners of the best digital real estate brands/domain names? Whether it be a pure geo name in a market (LosAngeles.com, Houston.com, etc.) or a top generic name (Insurance.com, Voice.com, Loans.com, Whisky.com, etc.) your digital domain assets just greatly increased in value….and will continue to do so. Our theories have been proven.
Fred Mercaldo Fred@GeocentricMedia.com (602) 859–3786