Revenue

9 Months Ended

Sep. 27, 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 digital and print products (which include our news product, as well as our Games (previously 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 revenue is principally from advertisers promoting products, services or brands on digital platforms in the form of banners and video, and in print, in the form of column-inch ads. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges and from creative services fees, including those associated with our branded content studio. Digital advertising revenues also include creative services fees and advertising revenue generated by Wirecutter, our product review and recommendation website. Print advertising includes revenue from column-inch ads and classified advertising, including line-ads as well as preprinted advertising, also known as freestanding inserts.

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 Nine Months Ended
(In thousands)	September 27, 2020		As % of total		September 29, 2019		As % of total		September 27, 2020		As % of total		September 29, 2019		As % of total
Subscription	$	300,950	70.5	%	$	267,302	62.4	%	$	879,573	69.0	%	$	808,568	62.0	%
Advertising	79,253		18.6	%	113,531		26.5	%	253,150		19.9	%	359,380		27.6	%
Other (1)	46,692		10.9	%	47,668		11.1	%	141,558		11.1	%	135,873		10.4	%
Total	$	426,895	100.0	%	$	428,501	100.0	%	$	1,274,281	100.0	%	$	1,303,821	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 and $8 million for the third quarters of 2020 and 2019, respectively, and approximately $22 million and $23 million for the first nine months of 2020 and 2019, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the third quarters and first nine months ended September 27, 2020, and September 29, 2019:

	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Digital-only subscription revenues:
News product subscription revenues(1)	$	140,740	$	107,009	$	392,620	$	313,785
Other product subscription revenues(2)	14,546		8,855		38,660		24,573
Subtotal digital-only subscriptions	155,286		115,864		431,280		338,358
Print subscription revenues:
Domestic home delivery subscription revenues(3)	129,912		126,769		396,620		395,011
Single-copy, NYT International and other subscription revenues(4)	15,752		24,669		51,673		75,199
Subtotal print subscription revenues	145,664		151,438		448,293		470,210
Total subscription revenues	$	300,950	$	267,302	$	879,573	$	808,568
(1) Includes revenues from subscriptions to the Company’s news product. News product subscription packages that include access to the Company’s Games and Cooking products are also included in this category.
(2) Includes revenues from standalone subscriptions to the Company’s Games, Cooking and audio products.
(3) Includes free access to some or all of the Company’s digital products.
(4) NYT International is the international edition of our print newspaper.

The following table summarizes digital and print advertising revenues for the third quarters and first nine months of 2020 and 2019:

	For the Quarters Ended				For the Nine Months Ended
(In thousands)	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Advertising revenues:
Digital	$	47,763	$	54,653	$	138,452	$	168,222
Print	31,490		58,878		114,698		191,158
Total advertising	$	79,253	$	113,531	$	253,150	$	359,380

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September 27, 2020, the aggregate amount of transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $153 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $16 million, $60 million and $77 million will be recognized in the remainder of 2020, 2021 and thereafter, respectively.

Contract Assets

As of September 27, 2020, and December 29, 2019, the Company had $2.2 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 $1.2 million for the nine months ended September 27, 2020, is due to consideration that was reclassified to Accounts receivable when invoiced based on the contractual billing schedules for the period ended September 27, 2020.