Today's news that (19459003) New York Times reported a net income of $ 55.2 million. After loss a year earlier – and its digital business raked at $ 709m. – is just an indicator that some of the country's oldest media properties are finally crossing the bridge into the 21st century.
Times managed to make a profit while employing 1,600 journalists – constantly high. Fourth quarter of digital advertising revenue rose 22.8 percent, while print advertising revenue fell 10.2 percent. The digital advertising revenue was DKK 103.4 million. $ 53.9 percent of total advertising revenue compared to 84.2 million. USD or 46.1 percent in the fourth quarter of 201
Add These Numbers to a New Robust The Washington Post A Consistently Profitable New Yorker and the Construction of Paywalls at sites across the vast area of the Internet point to A very simple lesson learned – people will pay for quality reporting, videos, personal writing and exclusive information.
Due to the excitement about subscriptions, it may seem surprising that TechCrunch is not doing anything in this area … yet.
Some of this is driven by a recent relevant news cycle that has seen American audiences wake up to the daily decisions that transform the country from the power talks of Congress and the White House .
"Our appeal to subscribers – and to the world's leading advertisers – depends more than anything on the quality of our journalism," Times CEO Mark Thompson said in a statement. "That's why we've increased, rather than cut, our investment in our newsroom and opinion departments. We want to further accelerate our digital growth, so in 2019 we'll be leading new investments in journalism, product and marketing."
For Some in the word salad business come the news a little too late. Compare the fortunes of centuries-old corporations with the newer darlings in the media world, and it becomes even more evident how inclement businesses were blown up by social media.
Releases from BuzzFeed, Vice Media and our own parent company Verizon Media Group point to the weaknesses of the "new" media model. The times actually covered this with a certain length, but it is worth repeating.
On two other new media properties; Vox Media Group (a division of Comcast NBC Universal) and Axios, a new subscription newsletter business; It's a Combination
Owning an audience through exclusive information or distribution is a much better way to get to profitability and then give away the store to get eye balls.
Even network TV and movie studios come to the subscription model as salvation of their business. Ad revenue is declining, and subscription services such as Netflix and Spotify have already taken huge bites out of the cash queues of the broader entertainment industry. What have studies and networks left, but subscription, subscription, subscription? That is why CBS launched its exclusive service, why Disney launches theirs, and how Amazon, Netflix and (even) Hulu have managed to become ascendant.
With a subscriber base, it is easier for media companies to sell sponsorships to specific companies or brands that will have influence. With subscriptions, a core reader gets to support a group of journalists' investigative work and support (and join) a community.
The eyeball was a classic construction of first generation internet stores – and it didn't work that much either.
Now, the question is whether this resurgence can also revive local prospects. The Times and its marquee media brothers have a national scale and a great range – or order a monopoly in big cities. What is needed is the resurrection of a live local news scene that can actually make money. Let's see if the Times model shows the way … again.