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.
Every Mission to Mars in One Visualization
This graphic shows a timeline of every mission to Mars since 1960, highlighting which ones have been successful and which ones haven’t.
Timeline: A Historical Look at Every Mission to Mars
Within our Solar System, Mars is one of the most similar planets to Earth—both have rocky landscapes, solid outer crusts, and cores made of molten rock.
Because of its similarities to Earth and proximity, humanity has been fascinated by Mars for centuries. In fact, it’s one of the most explored objects in our Solar System.
But just how many missions to Mars have we embarked on, and which of these journeys have been successful? This graphic by Jonathan Letourneau shows a timeline of every mission to Mars since 1960 using NASA’s historical data.
A Timeline of Mars Explorations
According to a historical log from NASA, there have been 48 missions to Mars over the last 60 years. Here’s a breakdown of each mission, and whether or not they were successful:
|1||1960||Korabl 4||USSR (flyby)||Failure|
|2||1960||Korabl 5||USSR (flyby)||Failure|
|3||1962||Korabl 11||USSR (flyby)||Failure|
|4||1962||Mars 1||USSR (flyby)||Failure|
|5||1962||Korabl 13||USSR (flyby)||Failure|
|6||1964||Mariner 3||US (flyby)||Failure|
|7||1964||Mariner 4||US (flyby)||Success|
|8||1964||Zond 2||USSR (flyby)||Failure|
|11||1969||Mariner 6||US (flyby)||Success|
|12||1969||Mariner 7||US (flyby)||Success|
|15||1971||Mars 2 Orbiter/Lander||USSR||Failure|
|16||1971||Mars 3 Orbiter/Lander||USSR||Success/Failure|
|20||1973||Mars 6 Orbiter/Lander||USSR||Success/Failure|
|21||1973||Mars 7 Lander||USSR||Failure|
|22||1975||Viking 1 Orbiter/Lander||US||Success|
|23||1975||Viking 2 Orbiter/Lander||US||Success|
|24||1988||Phobos 1 Orbiter||USSR||Failure|
|25||1988||Phobos 2 Orbiter/Lander||USSR||Failure|
|27||1996||Mars Global Surveyor||US||Success|
|31||1998||Mars Climate Orbiter||US||Failure|
|32||1999||Mars Polar Lander||US||Failure|
|33||1999||Deep Space 2 Probes (2)||US||Failure|
|35||2003||Mars Express Orbiter/Beagle 2 Lander||ESA||Success/Failure|
|36||2003||Mars Exploration Rover - Spirit||US||Success|
|37||2003||Mars Exploration Rover - Opportunity||US||Success|
|38||2005||Mars Reconnaissance Orbiter||US||Success|
|39||2007||Phoenix Mars Lander||US||Success|
|40||2011||Mars Science Laboratory||US||Success|
|42||2013||Mars Atmosphere and Volatile Evolution||US||Success|
|43||2013||Mars Orbiter Mission (MOM)||India||Success|
|44||2016||ExoMars Orbiter/Schiaparelli EDL Demo Lander||ESA/Russia||Success/Failure|
|45||2018||Mars InSight Lander||US||Success|
|47||2020||Tianwen-1 Orbiter/Zhurong Rover||China||Success|
|48||2020||Mars 2020 Perseverance Rover||US||Success|
The first mission to Mars was attempted by the Soviets in 1960, with the launch of Korabl 4, also known as Mars 1960A.
As the table above shows, the voyage was unsuccessful. The spacecraft made it 120 km into the air, but its third-stage pumps didn’t generate enough momentum for it to stay in Earth’s orbit.
For the next few years, several more unsuccessful Mars missions were attempted by the USSR and then NASA. Then, in 1964, history was made when NASA launched the Mariner 4 and completed the first-ever successful trip to Mars.
The Mariner 4 didn’t actually land on the planet, but the spacecraft flew by Mars and was able to capture photos, which gave us an up-close glimpse at the planet’s rocky surface.
Then on July 20, 1976, NASA made history again when its spacecraft called Viking 1 touched down on Mars’ surface, making it the first space agency to complete a successful Mars landing. Viking 1 captured panoramic images of the planet’s terrain, and also enabled scientists to monitor the planet’s weather.
Vacation to Mars, Anyone?
To date, all Mars landings have been done without crews, but NASA is planning to send humans to Mars by the late 2030s.
And it’s not just government agencies that are planning missions to Mars—a number of private companies are getting involved, too. Elon Musk’s aerospace company SpaceX has a long-term plan to build an entire city on Mars.
Two other aerospace startups, Impulse and Relativity, also announced an unmanned joint mission to Mars in July 2022, with hopes it could be ready as soon as 2024.
As more players are added to the mix, the pressure is on to be the first company or agency to truly make it to Mars. If (or when) we reach that point, what’s next is anyone’s guess.
Thematic Investing: 3 Key Trends in Cybersecurity
Cyberattacks are becoming more frequent and sophisticated. Here’s what investors need to know about the future of cybersecurity.
Thematic Investing: 3 Key Trends in Cybersecurity
In 2020, the global cost of cybercrime was estimated to be around $945 billion, according to McAfee.
It’s likely even higher today, as multiple sources have recorded an increase in the frequency and sophistication of cyberattacks during the pandemic.
In this infographic from Global X ETFs, we highlight three major trends that are shaping the future of the cybersecurity industry that investors need to know.
Trend 1: Increasing Costs
Research from IBM determined that the average data breach cost businesses $4.2 million in 2021, up from $3.6 million in 2017. The following table breaks this figure into four components:
|Cost Component||Value ($)|
|Cost of lost business||$1.6M|
|Detection and escalation||$1.2M|
|Post breach response||$1.1M|
The greatest cost of a data breach is lost business, which results from system downtimes, reputational losses, and lost customers. Second is detection and escalation, including investigative activities, audit services, and communications to stakeholders.
Post breach response includes costs such as legal expenditures, issuing new accounts or credit cards (in the case of financial institutions), and other monitoring services. Lastly, notification refers to the cost of notifying regulators, stakeholders, and other third parties.
To stay ahead of these rising costs, businesses are placing more emphasis on cybersecurity. For example, Microsoft announced in September 2021 that it would quadruple its cybersecurity investments to $20 billion over the next five years.
Trend 2: Remote Work Opens New Vulnerabilities
According to IBM, companies that rely more on remote work experience greater losses from data breaches. For companies where 81 to 100% of employees were remote, the average cost of a data breach was $5.5 million (2021). This dropped to $3.7 million for companies that had under 10% of employees working from home.
A major reason for this gap is that work-from-home setups are typically less secure. Phishing attacks surged in 2021, taking advantage of the fact that many employees access corporate systems through their personal devices.
|Type of Attack||Number of attacks in 2020||Number of attacks in 2021||Growth (%)|
As detected by Trend Micro’s Cloud App Security.
Spam phishing refers to “fake” emails that trick users by impersonating company management. They can include malicious links that download ransomware onto the users device. Credential phishing is similar in concept, though the goal is to steal a person’s account credentials.
A tactic you may have seen before is the Amazon scam, where senders impersonate Amazon and convince users to update their payment methods. This strategy could also be used to gain access to a company’s internal systems.
Trend 3: AI Can Reduce the Cost of a Data Breach
AI-based cybersecurity can detect and respond to cyberattacks without any human intervention. When fully deployed, IBM measured a 20% reduction in the time it takes to identify and contain a breach. It also resulted in cost savings upwards of 60%.
A prominent user of AI-based cybersecurity is Google, which uses machine learning to detect phishing attacks within Gmail.
Machine learning helps Gmail block spam and phishing messages from showing up in your inbox with over 99.9% accuracy. This is huge, given that 50-70% of messages that Gmail receives are spam.
– Andy Wen, Google
As cybercrime escalates, Acumen Research and Consulting believes the market for AI-based security solutions will reach $134 billion by 2030, up from $15 billion in 2021.
Introducing the Global X Cybersecurity ETF
The Global X Cybersecurity ETF (Ticker: BUG) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index. See below for industry and country-level breakdowns, as of June 2022.
|Sector (By security type)||Weight|
|🇰🇷 South Korea||0.9%|
Totals may not equal 100% due to rounding.
Investors can use this passively managed solution to gain exposure to the rising adoption of cybersecurity technologies.
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