Revenue

3 Months Ended

Mar. 28, 2021

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, Cooking and Audm 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 (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio 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. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Direct-sold display

advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. 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, Wirecutter affiliate referrals, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), commercial printing, retail commerce, television and film and our live events business.

Subscription, advertising and other revenues were as follows:

	For the Quarters Ended
(In thousands)	March 28, 2021		As % of total		March 29, 2020		As % of total
Subscription	$	329,084	69.6	%	$	285,434	64.4	%
Advertising	97,116		20.5	%	106,137		23.9	%
Other (1)	46,845		9.9	%	52,065		11.7	%
Total	$	473,045	100.0	%	$	443,636	100.0	%

(1) Other revenues includes building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $6 million and $8 million for the quarters ended March 28, 2021, and March 29, 2020, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the quarters ended March 28, 2021, and March 29, 2020:

	For the Quarters Ended
(In thousands)	March 28, 2021		March 29, 2020
Digital-only subscription revenues:
News product subscription revenues(1)	$	161,287	$	118,958
Other product subscription revenues(2)	18,312		11,052
Subtotal digital-only subscriptions	179,599		130,010
Print subscription revenues:
Domestic home delivery subscription revenues(3)	134,395		133,736
Single-copy, NYT International and other subscription revenues(4)	15,090		21,688
Subtotal print subscription revenues	149,485		155,424
Total subscription revenues	$	329,084	$	285,434
(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 Audm products.
(3) Includes free access to some 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 quarters ended March 28, 2021, and March 29, 2020:

	For the Quarters Ended
(In thousands)	March 28, 2021		March 29, 2020
Advertising revenues:
Digital	$	59,496	$	51,158
Print	37,620		54,979
Total advertising	$	97,116	$	106,137

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of March 28, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $112 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $37 million, $34 million and $41 million will be recognized in the remainder of 2021, 2022 and thereafter, respectively.

Contract Assets

As of March 28, 2021, and December 27, 2020, the Company had $1.7 million and $1.8 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.