Connect with us

Technology

The Times They Are A-Changin’

Published

on

Chart: Numbers Behind The New York Times Digital Transition

The Times They Are A-Changin’

The Numbers Behind the New York Times’ digital transition

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

For the most part, legacy print media stalwarts are dying a death by a thousand cuts.

There are exceptions to this rule, and The New York Times is often touted as the best example of an old-school media company that is successfully navigating the challenging transition to digital. They’ve experimented with different types of content and tactics to get eyeballs, while also shifting their company-wide strategy and culture to take a digital-first approach.

While pundits give credit to the Times for their latest efforts, this doesn’t mean it’s been an easy transition for the iconic newspaper. The path forward has been littered with roadbumps, and the most recent one is hard to ignore for shareholders.

Earlier this week, The New York Times announced a 95.7% decrease in quarterly profit. We dug a little deeper in this week’s chart to provide some context behind the newspaper’s challenges in maintaining its relevance in the 21st century.

Goodbye, Ad Dollars

The primary challenge faced by the Times is pretty obvious.

In the early 2000s, the company easily made over $2 billion in advertising revenue per year. Today, they make about $600 million from ads.

Why has the transition to digital hurt ad revenues so much? There are a bunch of reasons, but here’s a few of them:

  • Physical circulation of The New York Times and other newspapers is dropping rapidly.
  • Traditional display ads aren’t particularly effective, and are part of the “old-school” of digital thought.
  • Programmatic bidding drives down prices for these ads, bringing in even less revenue.
  • Digital lends itself to long-term, results-driven campaigns. It takes time to set these up and measure them properly, especially at scale.
  • Ads need to match the editorial stream to be effective. Quality over quantity.
  • There’s more competition in the digital space, which is a stark contrast to the distribution oligopolies enjoyed by big newspapers in the legacy era.
  • Madison Avenue is also slow at switching to digital, which only adds to the lag time.

These are just some of the reasons why advertising was able to make up 65% of the Times’ revenues in 2004, but only 39% in 2016.

Hello, Digital Subscriptions

While I don’t personally agree that a paywall is a long-term answer to any of their problems, it is true that the New York Times has used this as a temporary crutch to at least counter lost ad dollars.

In Q3 2016, revenue from digital-only subscriptions increased 16.4%, and money coming in from subscriptions has increased year-on-year since 2011.

Sometime between 2011 and 2012, subscription revenue (powered by digital-only subscriptions) passed ad revenues as the most important source of incoming cash for the company. The ramp-up has been impressive, and The New York Times now has 1.6 million digital subscribers.

My personal take? Digital subscriptions will plateau in the next five years or maybe sooner. Further, I think that content that isn’t industry or niche-specific will generally drift towards being free for users over time. The New York Times will have to solve their ad problem, but the paywall will buy them a bit of time to do so.

Click for Comments

Technology

Ranked: The 20 Biggest Tech Companies by Market Cap

In total, the 20 biggest tech companies are worth over $20 trillion—nearly 18% of the stock market value globally.

Published

on

A portion of the top 20 biggest tech companies visualized as bubbles sized by market cap with Apple as the biggest.

Ranked: The 20 Biggest Tech Companies by Market Cap

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The world’s 20 biggest tech companies are worth over $20 trillion in total. To put this in perspective, this is nearly 18% of the stock market value globally.

This graphic shows which companies top the ranks, using data from Companiesmarketcap.com.

A Closer Look at The Top 20

Market capitalization (market cap) measures what a company is worth by taking the current share price and multiplying it by the number of shares outstanding. Here are the biggest tech companies according to their market cap on June 13, 2024.

RankCompanyCountry/RegionMarket Cap
1AppleU.S.$3.3T
2MicrosoftU.S.$3.3T
3NvidiaU.S.$3.2T
4AlphabetU.S.$2.2T
5AmazonU.S.$1.9T
6MetaU.S.$1.3T
7TSMCTaiwan$897B
8BroadcomU.S.$778B
9TeslaU.S.$582B
10TencentChina$453B
11ASMLNetherlands$415B
12OracleU.S.$384B
13SamsungSouth Korea$379B
14NetflixU.S.$281B
15AMDU.S.$258B
16QualcommU.S.$243B
17SAPGermany$225B
18SalesforceU.S.$222B
19PDD Holdings (owns Pinduoduo)China$212B
20AdobeU.S.$206B

Note: PDD Holdings says its headquarters remain in Shanghai, China, and Ireland is used for legal registration for its overseas business.

 

Apple is the largest tech company at the moment, having competed with Microsoft for the top of the leaderboard for many years. The company saw its market cap soar after announcing its generative AI, Apple Intelligence. Analysts believe people will upgrade their devices over the next few years, since the new features are only available on the iPhone 15 Pro or newer.

Microsoft is in second place in the rankings, partly thanks to enthusiasm for its AI software which is already generating revenue. Rising profits also contributed to the company’s value. For the quarter ended March 31, 2024, Microsoft increased its net income by 20% compared to the same quarter last year.

Nvidia follows closely behind with the third-highest market cap, rising more than eight times higher compared to its value at the start of 2023. The company has recently announced higher profits, introduced a higher dividend, and reported that its next-generation GPU chip will start generating revenue later this year.

AI a Driver of the Biggest Tech Companies

It’s clear from the biggest tech companies that involvement in AI can contribute to investor confidence.

Among S&P 500 companies, AI has certainly become a focus topic. In fact, 199 companies cited the term “AI” during their first quarter earnings calls, the highest on record. The companies who mentioned AI the most were Meta (95 times), Nvidia (86 times), and Microsoft (74 times).

Continue Reading
Appian-Capital

Subscribe

Popular