In an effort to bolster digital subscription revenue, The Times announced Wednesday it would give new digital subscribers unlimited access to Spotify Premium, the paid portion of the music-streaming app that has quickly become the highest-grossing music streaming service in America.
Is it worth it? We did the math. If you were going to buy an NYT all access digital subscription and a Spotify premium subscription, you'll save $55 the first year, but you'll lose $10 yearly after that. It doesn't pay off after six years.
Why it matters: NYT is hoping digital subscriptions will make up for steep print and digital banner advertising losses that have been plaguing traditional print newsrooms across the country. On a call with investors in January, Times CEO Mark Thompson reassured investors that The Times is moving towards positive revenue growth, specifically because of a rapid rise of digital subscriptions. A music partnership makes sense to lure new subscribers, given that 58% of U.S. adults pay for streaming services like Spotify or Apple Music, according to a recent PayPal consumer trends survey
What we're watching: This is just the latest of the many steps NYT has taken to rebrand themselves as a media company that makes your life better, not just a news and information provider. In 2015, The TImes launched a incredibly successful "Cooking" app that attracts upwards of 8 million monthly unique visitors per month. In 2016, The Grey Lady launched "Watching" a digital franchise that rates and recommends TV and movie content and "Well" a cross-platform franchise designed to provide tips and information about working out and living a healthy lifestyle. With the Spotify partnership, The Times will be launching a music newsletter as a part of its expanded lifestyle content offerings.
