Friday, April 18, 2008

New York Times swings to loss in first quarter

Some interesting highlights from the article:

First-quarter revenue at the company's newspaper properties fell 5.7%, to $719.7 million.
Ad revenue fell 9.2%, while circulation revenue rose 1.9%.
Classified advertising, traditionally the prime source of revenue for newspapers, plunged 22.6%, reflecting declines in help-wanted, real estate and automotive ads.

Print advertising is declining and circulation rose in the quarter. Also,, a subsidiary of NYT saw growth as well. "While online revenues are rising, that growth isn't coming nearly fast enough to offset losses in print advertising and circulation."

But don't think that they are not a meaningful business, in the first quarter of 2008, revenue was still $747.9 million.

Their business is about getting readers to consume their brand across all platforms. They are a content producer and need to push the envelope more on the value of the opinions and news they present; otherwise, alternative outlets, including Murdoch's many brands (WSJ, Fox, NY Post, etc.) and even the internet publication Huffington Post , the Drudge Report , and others will eclipse the New York Times as the go to page for news and opinion.

Is this quarterly report the wake-up call the New York Times needs to become even more aggressive in this new media space? Or are they too late? Do other print or web publications replace your need to use the NYT for your daily news fix? Let me know.