Revenue at paper falls on declining ad rates
The New York Times Company said it will offer digital subscription plans at different price points in order to meet consumer demand.
The announcement was paired with a lackluster earnings report for the media giant, which saw revenue fall 2 percent to $465.9 million during the first three months of the year. That missed Wall Street's projections; analysts had predicted revenue of $470.5 million, according to Thomson Reuters.
Earnings per share also fell as the company struggled with lower ad revenue. Earnings for first quarter fell to 2 cents compared with 6 cents in the same period last year.
The New York Times logged an operating profit of $22.9 million in the first quarter of 2013 compared with $12.6 million in the same period of 2012.
The paper's paywall continued to be a source of strength, giving credence to its gamble that people will pay to access premium news coverage. Paid digital subscriptions totaled approximately 708,000, which was a jump of 45 percent from the same period last year.
Details remain vague, but the Times said it will begin offering different tiers of subscriptions. A cheaper version will give readers access to the paper's "most important and interesting stories," while a higher priced plan would include access to New York Times events and the ability to gift subscriptions and provide family access to the paper.
Advertising continues to be a sore spot for the company. During the first three months of the year, print and digital advertising revenues dropped 13.3 percent and 4 percent, respectively. The company’s overall advertising revenue fell more than 11 percent from $215.5 million to $191.2 million.