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The New York Times Company posted second quarter earnings Thursday, the corporation says it now has about 224,000 paid digital subscribers and about 57,000 subscribers for editions on eReaders and tablets.
“In addition to these paid digital subscribers, as of the end of the second quarter of 2011, The Times had approximately 100,000 highly engaged users sponsored by Ford Motor Company's luxury brand, Lincoln, who have free access to NYTimes.com and smartphone apps until the end of the year, and approximately 756,000 home-delivery subscribers with linked digital accounts, who receive free digital access,” a news release from the company says.
Together, these figures represent over 1 million digital users as of the second quarter.
According to the Audit Bureau of Circulations [ABC], The New York Times print edition has a national weekday reach of 4.5 million and a Sunday reach of 6.1 million for the 26-week period ending March 27. Total unique visitors for the site were listed at an average of 33.8 million over a six-month period ending in February 2011, according to ABC.
"The second quarter was a historic one for our company, as we successfully launched The New York Times digital subscriptions and began to see the early effect on our overall financial performance," says Janet L. Robinson, president and chief executive officer, The New York Times Company, according to a news release.
"The positive consumer response to the digital subscription packages is a strong indication of the value that users place on our high-quality news, analysis and commentary,” she says. “Our digital model exemplifies our growing ability to capitalize on secular trends that show consumer willingness to pay for content across multiple digital platforms.”
The number of digital subscribers bodes well for digital advertisers—there was a 15.5 percent increase in digital advertising revenue, which helped offset the 6.4 percent decrease in print advertising.
Meanwhile, the About Group, which operates About.com, saw revenues decrease by 17.3 percent to $27.8 million from $33.7 million. The company attributes the loss to lower cost-per-click and display advertising coupled with an increase in competition in the content space and Google algorithm changes, a prepared statement says.
In total, the New York Times Company posted second quarter losses of $119.7 million.