There is a terrific (long) presentation about the New York Times business (disclosure, I am planning to buy the stock, small position, < 5% of my portfolio).
Here is the bull case in 5 sentences and visuals (there are 167 slides in the presentation). I have summarized, them to the 5 that I think tell the story well.
- The New York Times market (# of subscribers) can be about 30 million globally (they are currently at 6.5 Million subscribers). Even if they get to 50% of that number, they will be a ~$3 B annual business.
2. NYT has a much lower cost structure than Netflix or Spotify, resulting in a more profitable business, since they own their content.
3. They have very few competitors that matter, compared to other online content businesses. In fact they have more subscribers than the next 100 competitors combined.
4. They have well diversified revenue streams, from digital, print and other sources, they are all growing and are profitable.
5. They have terrifically strong financials to survive the downturn, Covid and beyond.