Doug Arthur

Doug Arthur inquired about the $19 million severance expense, whether it was expected, its allocation across segments, and if similar 'small hits' related to AI productivity displacement are anticipated throughout 2026.

Answer

CFO Mike Eastwood confirmed the $19 million severance was slightly higher than anticipated but foreshadowed. He estimated an additional $10 million in Q1 2026 and another $10 million for Q2-Q4 2026. He clarified that the severance is spread across all segments and functions, reflecting company-wide productivity initiatives.

Doug Arthur asked for details on the $19 million severance expense, specifically if it was expected, how it was allocated across segments, and whether similar 'small hits' from AI productivity displacement are anticipated in 2026.

Answer

CFO Mike Eastwood confirmed the $19 million severance was slightly higher than anticipated, spread across all segments and functions due to company-wide productivity initiatives. He estimated an additional $10 million in severance for Q1 2026 and another $10 million for Q2-Q4 2026, totaling approximately $20 million for the full year.

Doug Arthur asked if there is a similar acute talent shortage narrative in the legal profession as there is in the accounting profession.

Answer

CEO Steve Hasker stated that the talent shortage is not as acute in legal as in accounting. He elaborated that the accounting profession faces a dramatic fall in qualified CPAs while demand for audits and tax returns increases in complexity and volume, making technology's role in addressing this supply-demand imbalance crucial.

Doug Arthur asked if the legal profession is experiencing a similar acute talent shortage as seen in accounting firms.

Answer

CEO Steve Hasker stated that the legal profession does not face as acute a talent shortage as accounting. He highlighted that the accounting profession is struggling with fewer qualified CPAs while demand for audits and tax returns increases in volume and complexity, making technology's role in addressing this supply-demand imbalance crucial.

Doug Arthur questioned The New York Times Company's confidence that single product growth is expanding the funnel and Total Addressable Market (TAM), and if it successfully converts highly engaged single product users to more valuable bundle subscriptions. He also asked for comments on the ongoing contract negotiations with the NewsGuild, particularly regarding remote work guidelines.

Answer

President and CEO Meredith Kopit Levien affirmed confidence that single products (including news, sports, games, recipes, shopping advice) are expanding the funnel and TAM, successfully converting users to bundles, and increasing their value through engagement. EVP and CFO Will Bardeen added that these products also powerfully support ad results. Levien stated a long history of productive union relationships and confidence in navigating the NewsGuild contract period.

Doug Arthur asked about the company's confidence in single product growth expanding the funnel and converting strongly engaged single product users to more valuable bundle subscriptions. He also inquired about the ongoing contract negotiations with the NewsGuild, particularly regarding remote work guidelines.

Answer

Meredith Kopit Levien, President and CEO, affirmed strong confidence that all non-news products play a crucial role in the subscription funnel, successfully bringing in new users and engaging them over time, which increases their value. Will Bardeen, EVP and CFO, added that these multiple products also significantly support advertising results. Regarding the NewsGuild negotiations, Meredith stated that The Times has a long history of productive relationships with its unions and is well-prepared to navigate this contract period, confident it will remain a great place to work.

Doug Arthur asked for an update on The Athletic's performance, specifically whether it was additive or in line with expectations, and any specific color. He also followed up on the conversion rate of single product subscribers to higher-value products over time.

Answer

Meredith Kopit Levien stated that The Athletic continues to perform very well and remains on track, highlighting strong engagement and the recent addition of NFL footage to enhance its signature journalism. Regarding single product subscribers, she explained that the model is working as designed, with these products serving as an engine for audience and engagement, driving subscriptions to individual products or bundles, and proving valuable for multi-revenue stream monetization, including advertising.

Doug Arthur asked for color on The Athletic's performance, specifically if it was additive or in line with expectations. He also followed up on the surge in single product subscribers, inquiring about the conversion rate of these subscribers to higher-value products over time.

Answer

Meredith Kopit Levien, President and CEO, stated that The Athletic's performance continues to be very pleasing and on track, highlighting strong engagement, the addition of NFL footage, and its contribution to advertising. She explained that single products, including games, serve as an engine for audience and engagement, driving subscriptions to individual products or bundles, and proving valuable for multi-revenue stream monetization, particularly in advertising.

Doug Arthur asked for clarification on the $134 million difference between reported and pro forma revenues, specifically if it represents the impact of closing Hulu Live late in October. He also sought to understand Fubo's standalone performance ex-Hulu Live, particularly regarding the reported revenue breakdown in the 10-K.

Answer

CFO John Janedis confirmed that the revenue difference is primarily due to the stub period of Fubo's revenue for the 28 days of October, as Hulu Live was the accounting acquirer. He offered to discuss the 10-K breakdown offline but broadly stated that Fubo's standalone business had a better subscriber outcome than expected, which flowed through the P&L, indicating satisfaction with Fubo's performance.

Doug Arthur asked for clarification on the $134 million difference between reported and pro forma revenues, specifically if it was due to the late October closing of Hulu Live. He also sought to disaggregate Fubo's standalone performance from the 10-K, given the stub period reporting for Fubo Live.

Answer

CFO John Janedis confirmed that the $134 million difference represents Fubo's revenue for the 28-day stub period in October, as Hulu Live was the accounting acquirer. He explained that reported revenue included three months of Hulu Live and approximately two months of Fubo. Gandler added that Fubo's standalone business achieved better subscriber outcomes than expected, and they were pleased with its P&L performance, with further disaggregation details available offline.