This reveals the delicate balance between print and digital…and how money is always chasing the tail of the content dog.
The New York Times Co. (S NYT) raised eyebrows among media watchers this morning when it announced that online ad revenue had slid from a year ago.
While the decline was a modest two percent and was accompanied by good news on the circulation front, the drop is still worrisome for a news industry staking its future on digital revenue.
On a follow-up earnings call, CFO James Follo said the drop in digital ads coincided with a larger psychological shift that began last year.
Follo explained that digital ad sales have long been insulated from macro-economic events. Starting in 2011, however, these ad sales began to be sensitive to the European debt crisis and other events that affect print ad sales.
On the call, New York Times executives remained bullish about the company’s overall strategy of building a global digital brand starting with a core of hyper-engaged users.
The company…
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