New York Times Increases NewsStand, Inc. Investment
Posted on April 11, 2002The New York Times Company and NewsStand, Inc., a publishing technology provider, announced that the Times Company has increased its minority equity position in NewsStand, Inc. to approximately 14 percent and added a Times representative to its board of directors. NewsStand allows publishers to offer a digital subscription edition of their newspaper or magazine.
"NewsStand has been a terrific partner for the Times Company and we are pleased to expand our relationship," said Janet L. Robinson, president and general manager, The New York Times Newspaper. "NewsStand's technology and distribution service have created a new sales channel for The Times and its advertisers to reach wider audiences. The New York Times Electronic Edition, like our website, NYTimes.com, enhances our ability to deliver our quality content to readers in the medium that best meets their needs."
In February 2001 the Times Company acquired a minority equity position in NewsStand, Inc. At that time the two companies also entered into a five-year agreement during which NewsStand serves as a digital circulation service for The New York Times newspaper. As a result of the Times Company's additional investment, it received a seat on NewsStand's board of directors. The seat has been filled by Scott Heekin-Canedy, senior vice president, circulation, The New York Times.
Heekin-Canedy, the new NewsStand board member from the Times, said that over 2,800 people have subscribed to the digital edition of the Times since it was launched last October. Heekin-Canedy also said that the Times expects to add more than $1 million in annual incremental subscription revenues from its Electronic Edition this year. The Audit Bureau of Circulations (ABC) counts copies of The New York Times Electronic Edition as paid circulation.
"We are pleased to have The New York Times Company increase its equity interest in NewsStand, Inc. and happily welcome Scott Heekin-Canedy to our board of directors," said Kit Webster, president and CEO, NewsStand, Inc. "This commitment by the Times Company reinforces our role in the future of publishing. By acting as a digital distributor for prestigious publications like The New York Times, we will expand our role in delivering newspapers and other print publications in a cost-effective manner, anywhere at anytime, with the added benefit of digital functionality."