New York Times CEO Meredith Kopit Levien sees a bright future for podcasting. The new chief executive of the historic New York newspaper told investors this week at the Goldman Sachs media conference that the company will continue with its efforts to move further into the digital audio space, and beyond the world of print.
“Audio is an area we are particularly excited about,” said Kopit Levien.
On average, “The Daily” generates four million downloads per day, nearly twice as many as it was delivering a year ago. Kopit Levien realizes the NYT’s audience in digital audio is significantly larger than the printed newspaper.
“Most of the people who are listening to The Daily everyday look quite different than traditional newspaper readers,” added Kopit Levien. “In many cases they’re new people to having a daily habit with The Times. They tend to be younger than traditional Times readers in print or even in digital, they’re much more likely to be female, the vast majority of the audience is under 40, and a lot is under 30, and they come every day and they listen in many cases the whole way through.”
The Times has shown it’s committed to investing millions of dollars to grow popular programs like ‘The Daily’, and to invest in major brands like Serial Productions, which the company spent 25 million dollars to acquire. They also struck a multiyear licensing deal with Ira Glass’ This America Life and recently added Kara Swisher’s new podcast Sway.
Second quarter was especially strong for the company, with digital revenue passing print revenue for the first time in company history. Podcast-specific revenues weren’t released, but second-quarter digital ad revenues were down 32% while print advertising revenues dropped 55%. A decline is expected for third-quarter too, with losses being attributed to the COVID-19 pandemic.
Kopit Levien believes the podcasting division for the company could be a “very big business” and likes that it not only helps grow subscriptions, but it produces cash on its own. She also cites the value of shows like “The Daily” introducing listeners to other new programs under the company’s banner. For instance, the new education podcast “Nice White Parents,” has already become the 10th biggest podcast in August according to Podtrac.
Despite audio producing significant traction and elevating optimism throughout the company, Kopit Levien is less bullish on the possibilities in video.
“I don’t know of any companies that were not born out of linear television that have succeeded in making video itself, original video production, as a standalone business, a strong business,” she said. “The economics were much different than in text. I think for the Times and many others in journalism. [Audio] is a clearer lift and one we have more optimism around as a standalone business.”
