Is The New York Times Buying Letterboxd?
The New York Times Company has entered exclusive negotiations to acquire Letterboxd, the digital sanctuary for film lovers, in a deal valued at approximately $330 million.
'The Sopranos'
According to The New York Times, they have entered into exclusive discussions to purchase Letterboxd.
If it goes through, the transaction would give The New York Times another feather in its cap for apps people use daily and bring tech and cinema together in new ways.
There has been a lot of interest in Letterboxd and its growing subscriber base. Will the New York Times improve the app or make it worse?
Let's dive in.
Why Studios Lost to the Times
The big fear around Letterboxd being sold was that a movie studio would buy it and use it to shill its own titles or manipulate ratings.
We heard places like Sony and A24 might be in the mix, but The New York Times seems willing to offer much more money for access to Letterboxd’s user base, around 30 million people.
So, what does this mean?
What Changes for Letterboxd Users?
It seems like nothing for now. I would assume there will be some sort of integration with New York Times reviews or maybe critics you can follow on the platform.
But right away, this just slides into other apps the NYT owns, like Wordle, that diversify their holdings. They also own the sports news site, The Athletic.
Again, this could just be an expansion of those endeavors. I could see Letterboxd hiring more film journalists for more interviews or how-to articles to capture the imagination of the broader filmmaking community.
Expansion has to be on their minds, but nothing has leaked.
Now, I am not sure how they think they will recoup the money they paid for the app; the $330 million is definitely more than paid users, and rentals will make up the difference, so maybe there will be more ads or another thing moving forward.
But right now, nothing.
Based on the reports I've read, Letterboxd will continue to operate as a stand-alone site and won't face much interference.
And the Times umbrella directly supports the publisher’s goal of expanding its 13.8 million subscriber base to 15 million by the end of 2027.
What’s Next?
Neither The New York Times Company nor Letterboxd co-founder Matthew Buchanan has formally commented on the pending sale.
We'll keep you updated if anything changes, but this is probably the best outcome I could have predicted.
You get the platform you want, with an owner who's just trying to get more people on it, as it is for now.
If anything changes, we'll let you know.
