Revenue

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our print and digital products (which include our news product, as well as our Crossword and Cooking

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 revenues are derived from the sale of our advertising products and services on our print and digital platforms. These revenues are primarily determined by the volume, rate and mix of advertisements. Display advertising revenue is principally from advertisers promoting products, services or brands. Display advertising also includes branded content on The Times’s platforms. Other advertising primarily represents, for our print products, classified advertising revenue. Digital other advertising revenue primarily includes creative services fees; advertising revenue from our podcasts; and advertising revenue generated by Wirecutter, our product review and recommendation website.

Other revenues primarily consist of revenues from licensing, commercial printing, the leasing of floors in the Company Headquarters, affiliate referrals (revenue generated by offering direct links to merchants in exchange for a portion of the sale price), television (primarily from our television series, “The Weekly”), NYT Live (our live events business) and retail commerce.

Subscription, advertising and other revenues were as follows:



	For the Quarters Ended				For the Six Months Ended
(In thousands)	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
Subscription	$	270,456	$	260,629	$	541,266	$	521,222
Advertising	120,761		119,201		245,849		244,848
Other ⁽¹⁾	45,041		34,730		88,205		62,438
Total	$	436,258	$	414,560	$	875,320	$	828,508

⁽¹⁾ Other revenue includes building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million and $6 million for the second quarters of 2019 and 2018, respectively, and approximately $15 million and $10 million for the first six months of 2019 and 2018, respectively.

The following table summarizes digital-only subscription revenues, which are a component of subscription revenues above, for the second quarters and first six months of 2019 and 2018:



	For the Quarters Ended				For the Six Months Ended
(In thousands)	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
Digital-only subscription revenues:
News product subscription revenues⁽¹⁾	$	104,430	$	93,549	$	206,776	$	184,125
Other product subscription revenues⁽²⁾	8,205		5,194		15,718		10,030
Total digital-only subscription revenues	$	112,635	$	98,743	$	222,494	$	194,155
⁽¹⁾Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Crossword and Cooking products are also included in this category.
⁽²⁾Includes revenues from standalone subscriptions to the Company’s Crossword and Cooking products.

Advertising revenues (print and digital) by category were as follows:



	For the Quarters Ended
	June 30, 2019						July 1, 2018
(In thousands)	Print		Digital		Total		Print		Digital		Total
Advertising revenues:
Display	$	55,859	$	42,833	$	98,692	$	60,803	$	41,443	$	102,246
Other	6,876		15,193		22,069		7,367		9,588		16,955
Total advertising	$	62,735	$	58,026	$	120,761	$	68,170	$	51,031	$	119,201



	For the Six Months Ended
	June 30, 2019						July 1, 2018
(In thousands)	Print		Digital		Total		Print		Digital		Total
Advertising revenues:
Display	$	118,201	$	84,945	$	203,146	$	131,608	$	80,140	$	211,748
Other	14,079		28,624		42,703		15,506		17,594		33,100
Total advertising	$	132,280	$	113,569	$	245,849	$	147,114	$	97,734	$	244,848

Performance Obligations

We allocate the transaction price of our digital archive licensing contracts among the performance obligations, (i) the delivery of archival content and (ii) the delivery of updated content, based on the Company’s estimate of the standalone selling price of each of the performance obligations, as they are currently not sold separately.

As of June 30, 2019, the aggregate amount of transaction price allocated to the remaining performance obligations (which represents the delivery of updated content to be delivered under our digital archive licensing contracts) was approximately $86 million. The Company will recognize this revenue as control of the performance obligation is transferred to the customer. We expect that approximately $10 million, $19 million and $57 million will be recognized in the remainder of 2019, 2020 and thereafter, respectively.

Contract Assets

As of June 30, 2019, and December 30, 2018, the Company had $4.0 million and $2.5 million, respectively, in contract assets recorded in Other current assets in the Condensed Consolidated Balance Sheets related to the archival content of our digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule. The increase in the contract assets balance of $1.5 million for the six months ended June 30, 2019, is primarily driven by new contract assets of $2.0 million offset by $0.5 million of consideration that was reclassified to Accounts receivable when invoiced based on the contractual billing schedules for the six months ended June 30, 2019.