for the Digiday Programmatic Marketing Summit, May 6-8 in Palm Springs.
Innovation comes at a price, it turns out. The New York Times’ investment in new digital products ate into its first-quarter earnings.
The company has been busy developing new digital products to capture readers who fall on either the low or high ends of the engagement spectrum. The NYT Now free mobile app on one end and, at the other, Times Premier, a premium service aimed at diehard fans, rolled out after the end of the first quarter, and more vertical apps are on the way.
In the company’s first-quarter earnings call, it disclosed that operating costs rose 3.8 percent to $365.8 million, mainly due to expenses associated with new products. Operating profit was $22.1 million in the quarter, down from $28.1 million in the same period of 2013.
On the bright side, the Times’ print and digital revenue is up for the first time in several years. The paper also continues to add digital subscribers, contributing to a 13.6 percent increase in overall digital circulation revenue over the year-ago quarter.
More in Media
‘I’m playing the long game’: Journalists are striking out alone and discovering the business is toughest beat of all
News creators have become preferred sources for younger viewers, but how do they grow and sustain their independent endeavors?
Creator scandals have turned morality clauses into brands’ go-to exit strategy
The fine print in creator contracts has never mattered more. A succession of high-profile creator scandals is putting morality clauses at the center of how brands manage risk.
In Graphic Detail: New data shows publishers face growing AI bot, third-party scraper activity
New data shows publishers face a surge in AI bots and third-party scrapers harvesting content without compensation.