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What: New York Times Co. has released its Q3 profits beating analysts expectations with Net income  of US$9.42 million( 6 cents a share) comparing to a loss of US$12.5 million, or 8 cents, a year earlier.
Why it matters: Print ad revenue fell 1 %( better than the 12.8% decline in the second quarter). Interestingly digital advertising declined by 5%. However, the company expects digital ad sales to post a year-over-year increase again in the fourth quarter.

finals_400x400New York Times Co. third-quarter profits have beaten analysts’ expectations as the publisher had its biggest increase in digital subscribers in three years.

Key results:

  • Ad revenue fell 2.1% in the quarter, weakened by digital ad sales that dropped 5 %, a major shift from the 14% gain in the second quarter)
  • Print ad revenue fell 1 %( better than the 12.8% decline in the second quarter)
  • Circulation sales gained 1.1%, a bit higher than in the most recent quarter
    Earnings were 9 cents a share (comparing with the 6-cent average of estimates compiled by Bloomberg)
  • Revenue rose about 1% from the quarter a year earlier, to US$367.4 million(Analysts had projected US$364.7 million)
  • Operating expenses declined 7.6%, mostly because of savings on outside printing costs and distribution
  • Net income was of US$9.42 million, or 6 cents a share, compared with a loss of US$12.5 million, or 8 cents, a year earlier.

Digital boost

descargaIn addition, the company suggested digital ad sales will post a year-over-year increase again in the fourth quarter.

Lately, the company has been trying to appeal more digital subscribers and sell online-marketing messages.The newspaper is actually planning to double its digital revenue to US$800 million by 2020 by increasing the number of paid online readers and drawing more young and international subscribers.
Moreover, the company added 51,000 digital subscribers, its biggest quarterly addition since the fourth quarter of 2012. Online subscribers now total to 1 million.

The NYT is planning to double its digital revenue to US$800 million by 2020 by increasing the number of paid online readers and drawing more young and international subscribers.

The Times has also teamed up with Facebook, Google and Apple to upload stories more quickly and reach readers on smartphones.

“It was our best advertising quarter of the year, year-over-year, despite a decline in digital advertising revenue, with better performance in print. We remain bullish about our digital advertising business and expect it to return to growth in the fourth quarter,” said New York Times Co. President-CEO Mark Thompson in a statement.

What: The Wall Street Journal is rolling out “What’s News,”its first mobile-only product , a paid  news app.The projects is aimed to support subscribers migrating to digital platforms.
Why it matters: Digital platforms are becoming popular among publishers who want to reach readers on mobile devices.Just like the WSJ, the New York Times is also turning to digital to counterpart print revenues downward trends. Not only for advertising but also for paid subscriptions. According to a recent WAN-IFRA report circulation revenues (print and digital) topped advertising revenues  for the first time for newspapers worldwide in 2014.

wsj_savedThe Wall Street Journal is rolling out its first mobile-only product, a paid, digest-style news app that consolidates digital and reconfigures its newsroom through staff buyouts.

The app, called “What’s News“, will be produced by a team of journalists and offered as an add-on for subscribers.

The new app is aimed to support its almost 2.2 million subscribers’ loyalty, out of which at least 700,000 are digital-only subscribers,as the Journal marches toward a goal of 3 million paying customers by 2017.The Apphas been described as a scan of the day’s most important news stories broken down for readers on the go. They also said it’s being talked up internally as a key component of the Journal’s digital strategy.

The new app is aimed to support its almost 2.2 million subscribers’ loyalty, out of which at least 700,000 are digital-only subscribers

Digest format

Digital is becoming popular among publishers who want to reach readers on mobile devices, where there’s a race to monetize audiences that access headlines thorugh their smartphones.

Apple has also released a new mobile news app  to give users a mix of stories from different publications. The New York Times already has “NYT Now,”a  news app that it is trying to scale as an advertiser-supported product after the app failed as a paid offering. Yahoo’s News Digest has gained popularity as a twice-daily blast of  stories as a morning and evening newspaper.

News Corp.,WSJ parent company, expects the new digital projects to help diminished print revenues, which have suffered an industry-wide downward trend as readers and advertisers are turning to digital platforms. Journal advertising revenues were down 11 percent in the third quarter of 2015, which included a 9-percent decline in the news and information segment that encompasses the Journal.

WSJ is expected to pump more newsroom resources into mobile initiatives like What’s News in the coming fiscal year, which begins in July.

Timothy Martell, executive director of the Indepenent Association of Publishers’ Employees, a union that represents 477 U.S.-based members of the roughly 1,800-person combined global newsroom of the Journal and Dow Jones’ Newswires, noted that there have lately been several dozen involuntary cuts outside of the newsroom. Layoffs are possible within the newsroom if the buyouts do not achieve management’s desired cost efficiency.

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What: Media company Time Inc.  has struck a multi-year agreement with content discovery platform  Outbrain to adopt its’ proprietary technology stack to deliver content recommendations to its audiences.
Why it matters: The content-recommendation space has grown rapidily as it pushes traffic around the web. By using content recommendations services major publishers can derive significant revenues as they offer their digital properties to drive traffic to other sites who pay for the inbound traffic. It is unusual for content recommendation services to be exclusive and for a revenue figures to be announced publicly as is the case in this Time Inc. Outbrain deal.

TimeIncMagazine publisher Time Inc. and Outbrain Inc., a global content discovery platform, have announced an exclusive multi-year agreement that will see Time Inc. enhance its digital strategy by deploying the full suite of Outbrain’s solutions for seamlessly surfacing content that is relevant to audiences across its global portfolio. The partnership is worth more than US $100 million for Time Inc. over the course of the agreement.

It is unusual for content recommendation deals to be exclusive.

To date, Time Inc. had been working with a combination of companies content-recommendation widgets which help push traffic around the web.As part of this agreement, Outbrain, also a “content discovery”  company,  will now power content recommendations on renowned brands such as Time, People, Sports Illustrated, InStyle, Real Simple, Travel + Leisure, Food & Wine. Additionally, it will provide Time Inc. with tools for their editorial team, empowering editors to better program and optimize content to meet their KPIs.

Time Inc. is also going to tap Outbrain’s existing premium publisher network to drive incremental engaged audiences to its digital properties.

Time Inc’s works with content brands such as People, Time, Sports Illustrated, InStyle and Real Simple to deliver valued content within brand-safe environments to a highly engaged audience. The company has experienced significant digital growth over the past year and currently boasts more than six billion page views per quarter and 131 million unique users per month, globally. Time Inc. announced revenues of US$821 million in the third quarter, but its ad sales and circulation fell during that period.

Time Inc. announced revenues of US$821 million in the third quarter, but its ad sales and circulation fell during that period.

Outbrain place links below articles published across a variety of websites, including CNN.com, Slate and ESPN. Media companies and marketers pay Outbrain to place those links on publishers’ sites so as to drive traffic to their content. In exchange,  Outbrain shares this revenue with the publishers where the links appear. The platform has offices in more than 11 global territories and partners with publishers and marketers in over 55 countries, including the U.S., UK, France, Japan, India and Brazil. Worldwide, it now serves over 190 billion recommendations per month to consumers in over 150 countries—with more than 561 million unique users in September 2014 according to comScore.

Time Inc. Chairman and CEO, Joe Ripp said: “This provides marketers with an ideal environment to deliver their messaging. Outbrain’s focus on audience experience and surfacing optimized content recommendations was a key to launching this partnership. It maximizes the monetization of our audience to other content publishers. And, it provides key insights and analytics about our core digital users.”

“We are delighted to announce our agreement with Time Inc. and believe that smart and innovative companies like it are the lifeblood of the new look digital media industry. Outbrain began as a straightforward recommendation product, but we have innovated, adapted and evolved into a platform that serves multiple publisher constituencies—the business, editorial and product teams—affording our partners the flexibility to embrace digital opportunities and continue to deliver what audiences crave,” said Yaron Galai, Co-Founder and CEO of Outbrain .

The agreement is said to be effect on November 15.

Read  more on how Content Marketing services providers and content recommendation services are expanding into the U.S. Hispanic and Latin American markets.