NYT forecasts subscription revenue below estimates as competition grows

NEW YORK: The New York Times forecast first-quarter subscription revenue growth below estimates on Wednesday, signaling intense competition for new readers in what will be a busy year for the media industry, sending its shares down 9% in early trading.

The forecast followed weaker-than-expected growth in digital-only subscribers in the fourth quarter of 2024, a crucial period for the news sector because of the Nov. 5 US presidential election, which typically boosts media engagement.

Long the beacon for news organizations in the digital age, the Times has started facing more competition in recent months after major media outlets including CNN and The Verge rolled out paid subscriptions in a crowded market. NYT expects subscription revenue growth of 7% to 10% in the current quarter, the midpoint of which was below analysts’ estimate of 9.9%, according to Visible Alpha.