By JOSEPH MALVEAUX and DANIEL SUTTONSource New Scientist article New York’s Times advertising empire has lost $1.3bn in the first six months of 2016, the newspaper said on Tuesday, as the newspaper faces an increasingly difficult financial situation.
The newspaper said it had recorded a loss of $1bn, down from $2.1bn in 2015, and said it was reducing advertising by $4.3m annually in the future.
It said the advertising costs had fallen by about half, but said its revenue from online and mobile ad sales had fallen about 25 per cent since 2015.
The New York-based Times is one of the biggest publishers in the US and was the first American newspaper to take online advertising seriously in the 1990s, when it introduced a digital strategy.
Times digital revenues have grown every year since 2010, reaching $9.7bn last year.
However, digital advertising revenue is declining rapidly, with ad sales down 31 per cent in the six months to March.
The company said that, in the past year, its digital advertising revenues had fallen to $4bn from $11bn a year earlier.
The Times said it did not expect to see the loss from the advertising losses over the coming year because it had been building out its digital media strategy and was increasing spending on its newsroom, digital media and print and online products.
The paper said that its digital business would remain strong.
The US newspaper’s print and digital ad revenue has fallen over the past three years, to $1 billion from $4 billion a year ago.
In December, it published an editorial warning that the future of the newspaper was in doubt.