DIGITAL SENTRY 4.1 UPDATE
In its June quarter report this week, the NYT Co provided what analysts thought was a light on update showing it added approximately 180,000 digital-only subscribers, and 230,000 digital-only subscriptions in the June quarter.
The new way of assessing these companies has seen share prices slide more than 30% across the board so far this year because of the perceived weakness in the streaming/subscription model that first emerged with Netflix in January and has spread to the entire US media sector. The Murdoch clan’s News Corp has close to 5 million newspaper subscriptions outside of Foxtel’s Pay TV’s 4.2 million plus streaming subscribers and around 1.7 million core customers for the Pay TV business).īoth would be considered by many investors to be old-fashioned industrials, but their growing subscriber numbers mean they have been put in the same boat as much larger groups such as the fading Netflix, and assessed in similar fashion.
It’s all about the number of subscriptions and digital income from subscriptions and ads for investors are now the yardsticks for old line media companies like the NYT Co with more than 9 million subscribers and over 10 million subscriptions. Rather than judging them solely on the basis of traditional measures such as revenue growth, earnings growth, ad spend, costs and staff numbers, (and the quality of their product in the case of companies like the NYT), investors now are looking at their performance in a way similar to the way Netflix is now assessed. US investors are changing the way they view the New York Times Co (NYT) – and many other old line media companies for that matter.
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