The New York Times Business Model Analysis

The New York Times generated 68% of its revenue from subscriptions in 2023. Indeed, of over $2.4 billion in revenues in 2023, $1.65 billion came from subscriptions (both printed and digital), $505 million from advertising (printed and digital), and $264 million in other revenues. Of the subscription revenues, nearly $1.1 billion were generated by digital subscriptions, while printed subscriptions generated $556 million.

Table of Contents

How does The New York Times make money?

The New York Times Revenue Breakdown — The New York Times generated $2.4 billion in revenues in 2023, $1.65 billion came from subscriptions (both printed and digital), $505 million from advertising (printed and digital), and $264 million in other revenues.

As a global media organization that “focuses on creating, collecting and distributing high-quality news and information,” the company’s principal business consists of distributing content across its digital and print platforms and, in small part, to third-party platforms.

The New York Times monetizes its content in two simples ways:

Subscriptions: both printed and digital.
Advertising: display, classified, and others.

Let’s look at The New York Times’ business model.

Subscription-based strategy driven by a freemium model

The-New-York-Times-Subscription-Revenue — The New York Times generated over $1.6 billion in subscription revenue, of which over $1 billion came from digital and 556.7 million from print, compared to $1.55 billion in revenue in 2022, of which $978 million was from print and nearly $574 million from digital.

The New York Times offers users free access to a set number of articles per month until it shows a paywall requesting users to join the platform for a basic subscription fee, which can initially be as low as $1 per week:

The content gets distributed across print and digital.

In 2022, NYTimes had 8.8 million paid digital subscribers to print and 730K print subscribers.

the-new-york-times-digital-vs-print — The New York Times reported 10.36 million subscribers in 2023, of which 9.70 million are digital subscribers and 660K are print subscribers. Compared to 9.55 subscribers in 2022, 8.83 million digital-only subscribers, and 730K print subscribers. Thus, digital subscribers accounted for over 92% of the total subscribers, whereas print subscribers only accounted for around 7.6% of the entire subscriber base.

Thus, as of 2023, over 90% of the total subscribers were digital-only.

How The NYTimes subscription-based business model is evolving

Over the years, NYTimes has shifted its business model toward a subscription, and by 2023, over 67% of total revenue came from subscriptions.

Indeed, the revenues coming from subscriptions surpassed those coming from advertising.

This is a massive and vital change, as publishers have lived off advertising revenues for over a century.

The interesting thing?

For years, most of the revenue within the subscription segment still came from print subscriptions. Yet, by 2023, this has shifted.

Indeed, most of the subscription revenue in 2023 came from subscriptions, which accounted for 63% of the total subscription revenue.

NYTimes advertising revenue model

The New York Times Advertising Revenue — The New York Times generated $505 million in advertising revenue in 2023, of which $317.74 million was digital and $187.46 million from print. Digital advertising contributed almost 63% of the total advertising revenue in 2023, compared to print which contributed over 37% of total ad revenue.

With a comprehensive portfolio of advertising products and services provided across print, web, and mobile platforms, the advertising revenues comprise three main sources:

Display Advertising

The New York Times had the largest market share in 2021 in print advertising revenue among national newspapers (compared to USA Today, The Wall Street Journal, and The Times, as reported by MediaRadar).

An independent agency that measures advertising sales volume and estimates advertising revenue.

Display advertising comprises.
Banners.
Video.
Rich media.
Other interactive ads.
Branded content.

Classified and Other Advertising

Classified advertising includes line ads sold in the major categories of real estate, help wanted, automotive, and others.

Classified advertising comprises three major types: real estate, help wanted, and automotive. Those pay on a per-line basis. While on the web or mobile platforms, the pay is on per listing base, which can be mixed as an add-on to the print ad.

In 2017, digital and print classified and other advertising represented approximately 13% of NYTimes advertising revenues.

Other businesses part of the NYTimes galaxy

As reported in NYTimes financial statements:

Other revenues include news services/syndication, digital archive licensing, building rental income, affiliate referrals, NYT Live (its live events business), and retail commerce.

Digital other revenues consist primarily of digital archive licensing revenue and affiliate referral revenue.

Building rental income consists of revenue from the lease of floors in our New York headquarters building, which totaled $16.7 million, $17.1 million, and $16.9 million in 2017, 2016, and 2015, respectively.

NY Times distribution strategy

It is interesting to notice the massive reach NYTimes has been able to build over the web. In short, it is the case in which a player from the printed master the digital world as well with a site that, according to Similar Web, estimates 641 million visits per month.

With its primary market in the US, The NYTimes is present across the globe with its digital subscriptions.

This is critical, as NY Times can earn a higher ARPU on its digital subscriptions and also higher RPMs for its digital advertising business.

The interesting part is that The NY Times managed to revamp its audience age distribution, as most of the digital users are between 18-34 years old.

With their interests spanning news, shopping, university, and education.

The NYTime’s strength lies in its strong brand and the ability to attract direct visitors to its web properties.

The marketing mix shows directly as the primary source. This implies strong brand recognition.

In fact, in the last ten years, while many things have happened in the digital media space, The New York Times (with many peaks and troughs which are coherent with the news flow) has remained a popular brand across the world.

How did they achieve that?

In 2023, the company had 5,900 employees. Yet, there is an interesting point to make.

To differentiate itself, The New York Times has been pushing more and more toward independent journalism by re-focusing its efforts on employing as many people as possible within the journalism operations.

Thus, going back to its core. This strategy seems to be paying back. Indeed, by 2022, of the total workforce, 45% was employed on the core product (journalism), compared to 40% in 2021 and 36% in 2020.

In short, The New York Times is pushing more and more on a journalism-led product strategy to drive further its digital distribution, and digital subscription base, which today represents the most critical revenue stream for the organization.

The NYT Journalism Operations Employees — The New York Times has further ramped up its journalism operations in the last three years. Indeed, as of 2023, of the total workforce, 45.7% were employed in journalism-related operations, compared to 45% in 2022, 40% in 2021, and 36% in 2020.

Key Highlights

Revenue Breakdown (2022):
- The New York Times generated $2.3 billion in revenue in 2022.
- $1.55 billion (67%) of the revenue came from subscriptions (both printed and digital).
- $523 million (22.7%) came from advertising (printed and digital).
- $232 million (10%) came from other revenues.
Subscription and Advertising Revenue:
- The company’s principal revenue sources are subscriptions and advertising.
- Subscription revenues are derived from both printed and digital subscriptions.
- Advertising revenue is generated through display, classified, and other advertising methods.
Subscription-Based Strategy:
- The New York Times employs a freemium model, offering free access to a limited number of articles per month before requiring a subscription.
- In 2022, the company had 8.83 million digital-only subscribers and 730,000 print subscribers, with digital subscribers accounting for over 92% of the total.
Shift towards Digital Subscriptions:
- The company has shifted its business model towards subscriptions, with over 67% of total revenue coming from subscriptions in 2022.
- Most of the subscription revenue in 2022 came from digital subscriptions, representing 63% of the total subscription revenue.
Advertising Revenue Model:
- Advertising revenue comes from various sources, including display advertising, classified ads (real estate, help wanted, automotive), and other advertising formats.
- In 2022, digital advertising contributed almost 61% of the total advertising revenue.
Diversified Revenue Streams:
- The New York Times also generates revenue from other sources such as news services/syndication, digital archive licensing, building rental income, affiliate referrals, live events (NYT Live), and retail commerce.
Global Reach and Audience Engagement:
- The company has a significant digital presence with an estimated 641 million visits per month to its website.
- The NYTimes has a strong brand recognition and attracts a diverse audience, particularly within the 18-34 age group.
Investment in Independent Journalism:
- The New York Times focuses on independent journalism, with a strategy of employing more people within journalism operations.
- By 2022, 45% of the total workforce was employed in journalism operations.
Digital Distribution Strategy:
- The company emphasizes a journalism-led product strategy to drive digital distribution and subscription growth.
- Digital subscriptions represent a critical revenue stream for the organization.

Business Model Recap

Element	Description
Value Proposition	The New York Times offers a range of value propositions for its customers: – Quality Journalism: The newspaper is renowned for its high-quality journalism, including investigative reporting, analysis, and in-depth features. – Credibility and Trust: The New York Times is a trusted source of news, providing accurate and reliable information to its readers. – Diverse Content: The publication covers a wide range of topics, including politics, business, culture, and international affairs, catering to diverse reader interests. – Digital Access: The New York Times offers digital access, allowing readers to stay informed on multiple platforms, including web, mobile apps, and newsletters. – Global Reach: The newspaper’s reporting extends worldwide, providing international perspectives and news coverage. – Archival Content: Subscribers gain access to a vast archive of past articles and content, adding historical value.
Core Products/Services	The New York Times’ core products and services include: – Print Newspaper: The physical newspaper edition, published daily, providing news, features, and opinion pieces. – Digital Subscriptions: The newspaper offers digital subscriptions, allowing readers to access content online, on mobile devices, and via apps. – Online Content: The New York Times website and mobile apps provide articles, videos, podcasts, and interactive features. – Newsletters: The newspaper offers a variety of email newsletters, delivering curated content to subscribers’ inboxes. – Archives: Subscribers can access archives containing past articles and content dating back to the 19th century. – Crosswords and Puzzles: The New York Times offers crossword puzzles and interactive games as an additional subscription feature.
Customer Segments	The New York Times’ customer segments include: – Readers: Individuals seeking high-quality news and information across a wide range of topics. – Subscribers: Paid subscribers who access digital content, archives, and premium features. – Print Subscribers: Those who receive and enjoy the physical print edition of the newspaper. – Advertisers: Businesses and organizations that advertise in The New York Times to reach its vast and diverse readership. – Educational Institutions: Schools and universities may subscribe to provide access to students and faculty. – International Audience: Readers from around the world who seek global news coverage.
Revenue Streams	The New York Times generates revenue through several revenue streams: – Subscription Fees: The newspaper earns income from digital and print subscriptions, offering various subscription tiers. – Advertising: Revenue is generated from print and digital advertising, including display ads, native advertising, and sponsored content. – Archival Access: The newspaper charges fees for access to its extensive archives. – Digital Products: Income is earned from the sale of digital products, including crossword puzzle subscriptions. – Events and Conferences: The New York Times hosts events and conferences, generating revenue from ticket sales and sponsorships. – Branded Content: The newspaper offers branded content and marketing solutions for advertisers.
Distribution Strategy	The New York Times’ distribution strategy focuses on accessibility, digital expansion, and quality journalism: – Digital Access: The newspaper offers digital access through its website, mobile apps, and newsletters, making content accessible to readers worldwide. – Print Distribution: Physical copies of the newspaper are distributed to subscribers, newsstands, and retailers. – Subscription Models: The New York Times employs various subscription models, including metered paywalls, premium content, and introductory offers. – Global Expansion: The publication targets a global audience, with international bureaus and reporting. – Partnerships: The newspaper partners with educational institutions and other organizations to provide access to its content. – Content Promotion: The New York Times promotes its content through social media, search engine optimization (SEO), and email marketing to reach a wider audience.