Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

We generate revenues principally from subscriptions and advertising.

Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Cooking, Games and Wirecutter products), and single-copy and bulk sales of our print products. Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

Advertising revenue is generated principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print in the form of column-inch ads. Advertising revenue is generated primarily from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and classified advertising as well as preprinted advertising, also known as freestanding inserts. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising, podcast, email and video advertisements and open-market programmatic advertising. There is no print advertising revenue generated from The Athletic.

Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), television and film, retail commerce, our live events business and our student subscription sponsorship program.

Subscription, advertising and other revenues were as follows:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 30, 2023		As % of total		June 26, 2022		As % of total		June 30, 2023		As % of total		June 26, 2022		As % of total
Subscription	$	409,590	69.3	%	$	383,619	69.0	%	$	807,132	70.0	%	$	755,598	69.2	%
Advertising	117,770		19.8	%	117,379		21.0	%	224,011		19.5	%	233,649		21.3	%
Other (1)	63,493		10.9	%	54,682		10.0	%	120,449		10.5	%	103,858		9.5	%
Total	$	590,853	100.0	%	$	555,680	100.0	%	$	1,151,592	100.0	%	$	1,093,105	100.0	%

(1) Other revenues include building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was $6.5 million and $7.2 million for the second quarters of 2023 and 2022, respectively, and $13.7 million and $14.3 million for the first six months of 2023 and 2022, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the second quarters and first six months ended June 30, 2023, and June 26, 2022:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 30, 2023		As % of total		June 26, 2022		As % of total		June 30, 2023		As % of total		June 26, 2022		As % of total
Digital-only subscription revenues (1)	$	269,774	65.9	%	$	238,727	62.2	%	$	528,541	65.5	%	$	465,489	61.6	%
Print subscription revenues:
Domestic home-delivery subscription revenues (2)	126,024		30.8	%	131,080		34.2	%	251,901		31.2	%	262,472		34.7	%
Single-copy, NYT International and Other subscription revenues (3)	13,792		3.4	%	13,812		3.6	%	26,690		3.3	%	27,637		3.7	%
Subtotal print subscription revenues	139,816		34.1	%	144,892		37.8	%	278,591		34.5	%	290,109		38.4	%
Total subscription revenues	$	409,590	100.0	%	$	383,619	100.0	%	$	807,132	100.0	%	$	755,598	100.0	%
(1) Includes revenue from bundled and standalone subscriptions to our news product, as well as to The Athletic and to our Cooking, Games and Wirecutter products.
(2) Domestic home-delivery subscriptions include access to our digital products.
(3) NYT International is the international edition of our print newspaper.

The following table summarizes digital and print advertising revenues, which are components of advertising revenues above, for the second quarters and first six months ended June 30, 2023, and June 26, 2022:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 30, 2023		As % of total		June 26, 2022		As % of total		June 30, 2023		As % of total		June 26, 2022		As % of total
Advertising revenues:
Digital	$	73,804	62.7	%	$	69,292	59.0	%	$	135,075	60.3	%	$	136,306	58.3	%
Print	43,966		37.3	%	48,087		41.0	%	88,936		39.7	%	97,343		41.7	%
Total advertising	$	117,770	100.0	%	$	117,379	100.0	%	$	224,011	100.0	%	$	233,649	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of June 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $207 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $40 million, $76 million and $91 million will be recognized in the remainder of 2023, 2024 and thereafter through 2028, respectively.

Unexpired Subscriptions

Payments for subscriptions are typically due upfront and the revenue is recognized ratably over the subscription period. The proceeds are recorded within Unexpired subscriptions revenue in the Condensed Consolidated Balance Sheet. Total unexpired subscriptions as of December 31, 2022, were $155.9 million, of which approximately $132 million was recognized as revenues during the six months ended June 30, 2023.

Contract Assets

As of June 30, 2023, and December 31, 2022, the Company had $3.8 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.