01/14/2022
The New York Times acquiring The Athletic for $550 million shows the power of digital subscriptions, high audience engagement, and a strong subscription culture for today’s media environment. The days of growing ad revenue by expanding eyeballs on web pages is simplistic and largely obsolete. Since Trump left office, engagement, and thus revenue, for news content is down significantly. Engagement for sports content is typically strong at all times, and growing, or the NYT wouldn’t have paid so much for The Athletic. This is a great read if you want to know that leverage is alive and well in the media space today – IF you hit on the right audience, editorial formula and business strategy.
In light of declining engagement due to pandemic news burnout and Trump’s White House departure, news publishers are ravenous for growth. To satisfy their hunger, major players are merging with or acquiring other media outlets. But the trend may be indicative of a larger-scale shift toward bundled...