The New York Times reported strong growth in its third-quarter 2024 earnings, crossing the milestone of 11 million total subscribers, largely fueled by digital-only subscriptions. Approximately 260,000 new digital-only subscribers were added in Q3, pushing the company’s total subscriber count to 11.09 million. This marks progress toward The Times’ goal of 15 million subscribers by 2027, though the quarter-over-quarter rate of new subscriptions showed signs of slowing.
Digital subscription revenue rose 14.2% year-over-year to $322.2 million, driven by a mix of new subscribers and higher pricing for tenured subscriptions. The company reported an adjusted operating profit of $104.2 million, a 16.1% increase, with total revenue rising 7% to $640.2 million.
The Athletic, acquired by The Times in 2022, posted its first profit of $2.6 million this quarter, reversing a $7.9 million loss in Q3 of the prior year. The shift was attributed to increased subscription and advertising revenue. Additionally, The Times’ advertising revenue benefited from heightened political ad spending ahead of the U.S. presidential election, with digital ad revenue up by 8.8%.
Meredith Kopit Levien, CEO of The New York Times Company, noted the value of The Times’ diversified offerings in a changing media landscape. “We believe that portfolio, and our ability to keep adding value to it over time, is what makes The Times resilient in a changing media landscape,” she said in a statement. Over five million subscribers now engage with bundles or multiple products, such as The Times’ Cooking, Games, Wirecutter, and The Athletic offerings.
The Times faced several challenges this quarter, including an early Monday strike by its Tech Guild, which represents more than 600 employees negotiating over pay and other issues. Legal costs related to a $4.6 million lawsuit against Microsoft and OpenAI over the use of AI training data also impacted the quarter. Despite these hurdles, The Times continues to expand its digital footprint and advertising channels, reinforcing its position in the subscription economy.
INSIDER TAKE
The New York Times’ subscription growth strategy shows the value of a diversified portfolio in an uncertain economy. The slower rate of new subscriber additions could signal economic pressures on consumer spending, making The Times’ ability to maintain growth through bundled subscriptions all the more critical. Meanwhile, The Athletic’s profitability highlights the value of niche content verticals, positioning The Times as a model for digital-first subscription success. As the company navigates labor challenges and legal disputes, it remains well-positioned with a broad digital reach and a robust bundle strategy.
