The New York Times Co. said Tuesday that it made an additional investment in Austin, Texas-based NewsStand Inc. — increasing the Times’ minority interest in the company to 14%.
The publisher declined to disclose how much money it invested in privately held NewsStand, which reproduces print publications in electronic environments — exactly as they appear in print. The Times Co. will also take a seat on the NewsStand board, to be filled by Scott Heekin-Canedy, senior vice president, circulation.
The Times Co. first invested in NewsStand in February 2001, when it signed a five-year agreement for NewsStand to produce a digital version of the print New York Times.
In a statement, Heekin-Canedy said over 2,800 customers have subscribed to the NewsStand version since it launched in October. He said 20% of those subscriptions came from the New York area. “We expect to add more than $1 million in annual incremental subscription revenues from our [NewsStand] Electronic Edition this year,” he added.
The introductory price for the Electronic Edition is $13 for Monday-Friday, or $26.80 for seven-day delivery.
The Times Co. points out that the Audit Bureau of Circulations (ABC) counts copies of the Electronic Edition as paid circulation. “As a result of its national expansion and increased availability, the Times expects in April to reports its seventh consecutive weekday increase for the semi-annual ABC report,” the company’s statement said.
Single copies may be purchased for 65 cents at http://www.nytimes.com/ee.
Similar technology is being offered by Olive Software Inc. of Denver, which recently launched its first newspaper on its ActivePaper Daily software, the East Valley Tribune in Mesa, Ariz.