Comments: Digital Media Summit Day 2

Interesting that NYTD's Web archives revenues are only around $1 million annually.

NYTD's NEXIS contract, which it inherited from the parent newspaper company, currently provides more than $20M annually. I say 'more than' because that 1996 contract stipulated a fixed royalty of $20M that year and fixed increases in that amount during each subsequent each year of the 10-year contract -- so it's now probably around $25M annually.

However, those NEXIS royalty terms weren't based upon usage. Had it been, then the NYT's first year's royalties would have been only about $500K. Instead, the NYT demanded the much higher fixed annual royalties because NYT knew that NEXIS's overall revenues would benefit from being able to claim NYT was among its content.

Posted by Vin Crosbie at February 17, 2004 08:49 AM