(New Coverage) New York Times: Online Ads are about 31% of NYT’s stock price, much more valuable than its traditional circulation sales business
Trefis has just launched coverage of The New York Times Company (NYT) which makes money through print advertising, online advertising, and circulation sales of newspapers like the New York Times, International Herald Tribune (IHT), Boston Globe and Telegram & Gazette as well as advertising on About.com.
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NY Times & IHT Online Ads & Other, which includes advertising on NYTimes.com and IHT.com, constitutes 31% of the $10.65 per share Trefis price for NYT compared to 22% for NY Times & IHT Circulation which represents the value from circulation fees for the NYT and IHT print newspapers.
Although circulation fees have increased in recent years from $4.10 per week on average in 2006 to $4.70 per week today for the NYT newspaper, the circulation volume has fallen from a daily circulation of 1.1 million in 2006 to less than 1 million today. We expect the rising fee and declining circulation trends to continue over our forecast period as print newspaper readers continue to transition to reading newspapers online. In comparison, the number of visitors to NYTimes.com and IHT.com has increased from 16 million unique monthly visitors in 2006 to 33 million today. We expect unique monthly visitors to reach 65 million by the end of the forecast period.
Within NYT’s content on our platform, you can see how the company’s stock price is impacted by growth in in the Average NYTimes.com Uniques per Month.