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The New York Times: A Sleeper Tech Company
The transition from the physical to digital economy is difficult to navigate. The New York Times is one of the rare companies who successfully crossed the physical to digital chasm. In doing so it offers a template for how to succeed in a world dominated by aggregators. It also exemplifies the rich-get-richer dynamic that’s so prevalent in online businesses.
Crossing the Digital Divide
In the second quarter of 2020, the Times’ digital revenue exceeded print revenue for the first time. The company also reported 5.7 million digital subscribers, up from 1.0 million in October 2015, a roughly 40% compound annual growth rate (CAGR).
Over the past decade subscription and revenue mix have steadily moved from physical to digital, a trend that should continue as the Times targets 10 million subscriptions by 2025:
The Rise of Digital Subscriptions
Success in digital subscriptions was not guaranteed for the Times. In 2012 the company had four revenue streams: print subscriptions, print advertising, digital advertising, and digital subscriptions. Digital subscription growth was plateauing and the other revenue streams were stagnant or declining. Mark Thompson, the Times’ outgoing president and CEO, notes in this fascinating interview with…
