Revenue

6 Months Ended

Jun. 28, 2020

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 print and digital products (which include our news product, as well as our Crossword, Cooking and audio 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 primarily derived from offerings sold directly to marketers by our advertising sales team. A significantly smaller and diminishing proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising 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 advertisements that direct viewers to branded content on our platforms. Other print advertising revenue primarily includes classified advertising revenue. Other digital advertising revenue primarily includes creative services fees, including those associated with our branded content studio; 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, affiliate referrals from Wirecutter, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, television and film, retail commerce and NYT Live (our live events business).

Subscription, advertising and other revenues were as follows:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 28, 2020		As % of total		June 30, 2019		As % of total		June 28, 2020		As % of total		June 30, 2019		As % of total
Subscription	$	293,189	72.6	%	$	270,456	62.0	%	$	578,623	68.3	%	$	541,266	61.8	%
Advertising	67,760		16.8	%	120,761		27.7	%	173,897		20.5	%	245,849		28.1	%
Other (1)	42,801		10.6	%	45,041		10.3	%	94,866		11.2	%	88,205		10.1	%
Total	$	403,750	100.0	%	$	436,258	100.0	%	$	847,386	100.0	%	$	875,320	100.0	%

⁽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 for the second quarters of 2020 and 2019, respectively, and approximately $15 million for the first six months of 2020 and 2019, respectively.

The following table summarizes print and digital subscription revenues, which are components of subscription revenues above, for the second quarters and first six months ended June 28, 2020, and June 30, 2019:

	For the Quarters Ended				For the Six Months Ended
(In thousands)	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Print subscription revenues:
Domestic home delivery subscription revenues(1)	$	132,971	$	133,038	$	266,708	$	268,241
Single copy, NYT International and other subscription revenues(2)	14,234		24,783		35,921		50,531
Subtotal print subscription revenues	147,205		157,821		302,629		318,772
Digital-only subscription revenues:
News product subscription revenues(3)	132,922		104,430		251,880		206,776
Other product subscription revenues(4)	13,062		8,205		24,114		15,718
Subtotal digital-only subscriptions	145,984		112,635		275,994		222,494
Total subscription revenues	$	293,189	$	270,456	$	578,623	$	541,266
(1) Includes free access to some or all of the Company’s digital products.
(2) NYT International is the international edition of our print newspaper.
(3) 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.
(4) Includes revenues from standalone subscriptions to the Company’s Crossword, Cooking and audio products.

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

	For the Quarters Ended
	June 28, 2020						June 30, 2019
(In thousands)	Print		Digital		Total		Print		Digital		Total
Advertising revenues:
Display	$	21,460	$	30,466	$	51,926	$	55,859	$	42,833	$	98,692
Other	6,769		9,065		15,834		6,876		15,193		22,069
Total advertising	$	28,229	$	39,531	$	67,760	$	62,735	$	58,026	$	120,761

	For the Six Months Ended
	June 28, 2020						June 30, 2019
(In thousands)	Print		Digital		Total		Print		Digital		Total
Advertising revenues:
Display	$	69,619	$	70,360	$	139,979	$	118,201	$	84,945	$	203,146
Other	13,589		20,329		33,918		14,079		28,624		42,703
Total advertising	$	83,208	$	90,689	$	173,897	$	132,280	$	113,569	$	245,849

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of June 28, 2020, the aggregate amount of transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $138 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $26 million, $45 million and $67 million will be recognized in the remainder of 2020, 2021 and thereafter, respectively.

Contract Assets

As of June 28, 2020, and December 29, 2019, the Company had $2.6 million and $3.4 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. The decrease in the contract assets balance of $0.8 million for the six months ended June 28, 2020, is due to consideration that was reclassified to Accounts receivable when invoiced based on the contractual billing schedules for the period ended June 28, 2020.