#digital-subscriptions

#digital-subscriptions

The investment thesis fits Buffett's lens precisely. The Times possesses an irreplaceable brand moat with 175 years of history, digital subscription revenues growing 14% annually, and gross margins stabilized around 48%, demonstrating the pricing power he has always prized in media. NYT has also diversified intelligently. Wordle became a cultural phenomenon. The Athletic acquisition brought the world's largest sports journalism operation into the fold. Cooking offers 25,000+ vetted recipes. This is a portfolio of habit-forming content products anchoring daily routines for millions.

The latest: The Washington Post is laying off hundreds of journalists in an effort to "restructure" the newsroom and cut costs. In 2024, the company began prioritizing subscriptions over digital advertising, raising the yearly fee to access content. The big picture: While major media companies and news organizations tinker with delivery methods, tiered subscriptions and bundles that include non-news packages, including crossword puzzles and games, local news is still operating standard paywalls, relying on subscription-based revenue instead of digital advertising.

Subscription bundles have been the driving force behind The New York Times' digital subscription growth. In a recent earnings call, New York Times CEO Meredith Kopit Levien said at least 50% of its subscribers are paying for a bundled subscription or for multiple product subscriptions, "which is important because those subscribers engage more, stay longer and pay more over time," she said.