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Edition: U.S. Article Comments (1) Technology Apple to beat Google on cloud music storage: sources Amazon cloud disruption hits some startups The cloud is not just about storage Microsoft plans sweeping pay rises: CEO memo iPhone boosts Verizon customers, hurts profit Nokia Q1 beats forecasts, nails Microsoft deal Apple phone revenues beat Nokia: Strategy Analytics NY Times gains online subscribers Video: Royal Wedding 2.0 - you're invited Follow Reuters Facebook Twitter RSS YouTube Read "American Idol" mulls voting tweaks to fix boy bias 20 Apr 2011 Supporters of WikiLeaks soldier heckle Obama 2:38pm EDT Dollar tumbles broadly; all-time index low in sight 3:11pm EDT Lawsuits fly in BP's Gulf spill blame game | 3:27pm EDT Archbishop praises "unpretentious" Kate and William 12:35pm EDT Discussed 97 Palin returns with feisty, anti-establishment speech 48 Budget vote shows challenge for Boehner, Obama 43 Obama private comments show fight with Republicans Watched VW unveils new sporty Beetle Mon, Apr 18 2011 Apple, AmEx, Yum top forecasts 3:38am EDT Oscar-nominated director killed in Libya 6:05pm EDT SMALL BUSINESS Entrepreneur's Edge: Instant translation on your smartphone When Otavio Good released the first video of his Word Lens translation app in use, it became a viral phenomenon. Since then he's been busy recruiting programmers to help roll it out to include more languages beyond the original Spanish. Full Article | Video New app calculates calories through photos of food Common budget mistakes for tech startups NY Times gains online subscribers, but woes linger Tweet Share this By Jennifer Saba NEW YORK (Reuters) - New York Times Co's risky attempt to charge fees to website readers looks to be paying off, although it still faces stiff challenges in turning around a fall-off in print advertising revenue at its core... Email Print Related News UPDATE 2-European strength lifts Manpower profit, shares up 10:38am EDT Xerox outlook calms supply fears, profit rises 8:46am EDT SunTrust swings to profit, loan losses decline 8:21am EDT Southwest posts lower quarterly profit 7:42am EDT UPDATE 1-Fifth Third swings to profit in first quarter 7:18am EDT Analysis & Opinion Tech wrap: Apple raises the earnings bar Taxes, syndication, and web traffic Related Topics Technology » Media » iPad » Stocks The facade of the New York Times building is seen in New York, November 29, 2010. Credit: Reuters/Shannon Stapleton By Jennifer Saba NEW YORK | Thu Apr 21, 2011 1:35pm EDT NEW YORK (Reuters) - New York Times Co's risky attempt to charge fees to website readers looks to be paying off, although it still faces stiff challenges in turning around a fall-off in print advertising revenue at its core business. The company gained more than 100,000 new subscribers since it introduced its digital subscription service on March 28, representing at least an estimated $26 million in annual revenue and trouncing early expectations for the service. "It's an excellent figure," Evercore Partners analyst Doug Arthur said about the digital subscribers. "I (was) only looking for 200,000 subscribers in year one." The pay model is being closely watched by general interest newspapers, which are all seeking new forms of revenue in the face of declining advertising revenue and print readership. The search for additional dollars only underscores the problems beset by newspapers, which have not benefited from the rebound in advertising enjoyed by other media. The New York Times, publisher of its namesake newspaper and the Boston Globe, also reported on Thursday that lower print advertising sales dragged down first-quarter revenue and profit. Other newspapers companies such as Gannett and Media General reported disappointing first quarter results that points to a setback in any modest progress made last year. Only a handful of newspapers that specialize mainly in financial news, namely News Corp's Wall Street Journal and Pearson Plc's Financial Times, have been successful in charging readers for online access. Rupert Murdoch's News Corp, for instance, introduced a pay service at the Times of London and the Sunday Times in July. Collectively, the papers had 79,000 monthly digital subscribers as of the end of February, up from 50,000 on October 31, 2010. The Daily, News Corp's digital newspaper start-up for the iPad and other tablet computers, has not said how many subscribers it added since it launched in early February. The New York Times' online subscriber figures do not include the Lincoln automaker sponsorship that offered readers a free trial, but does include a discounted 99-cent promotional offer. Earlier estimates for the New York Times pay model pointed to a slight drop-off in readers. Online research firm Experian Hitwise said last week that the number of people visiting NYTimes.com fell between 5 percent and 15 percent during a 12-day period following the launch compared with the 12 days prior. New York Times executives said during a conference call that declines in traffic at the website were within expectations. The company expects to spend $13 million in promotional costs for online subscriptions. Total revenue fell 3.6 percent to $566.5 million. Analysts on average forecast $568.9 million, according to Thomson Reuters I/B/E/S. Advertising revenue at the company declined 4.4 percent on a 7.5 percent drop in print ad revenue. Digital ad revenue rose 4.5 percent in the first quarter. "Clearly, like every other newspaper company that reported, this is not terrific," said Benchmark Co analyst Edward Atorino, who noted ad revenue remains volatile at the New York Times since executives said April ad sales are trending similar to the first quarter. At About.com, an online site that doles out advice from experts and competes with sites such as Demand Media, revenue fell 10.2 percent to $31.1 million. Ad results at the site were hurt by recent search engine changes at Google. New York Times shares were up in early trading before sliding to be down 4.7 percent in afternoon trading. Net income for the first quarter was $5.4 million, or 4 cents per share, compared with $12.8 million, or 8 cents per share for the same period last year. Excluding the partial sale of its investment in job listing site Indeed.com, adjusted EPS was 2 cents per share, in line with analysts' average estimate. (Reporting by Jennifer Saba; editing by Derek Caney, Andre Grenon and Tim Dobbyn) Technology Media iPad Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) seattlesh wrote: I remain on the fence with regards to an NYT online subscription. When Frank Rich and Bob Herbert left the paper I was afraid that the quality of its journalist would decline. So far they have added Russ Douthat who in my opinion is a poor excuse for a conservative journalist. Joe Nocera has now joined ranks of their regular contributors and he is a guy they should jettison. I think that I will maintain a wait and see policy. Apr 21, 2011 11:20am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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