The goal of what we call the RTG Plan is to build a sustainably profitable media and marketing company. For this plan to ultimately be successful, we need to grow revenue from the core product lines of digital membership, digital advertising and marketing services. This year, we have grown in two of those three areas, but we want to see growth in all three. In the third quarter, we were more aggressive with the pricing of our digital subscription offering, and I’m pleased with the early returns from this change. This change will result, as we are seeing, in short-term volume declines, but will improve the revenue trajectory of digital subscription revenue. On the marketing services side of the business at Medium Giant, this year has been marked by trepidation from our current clients who are being cautious with their advertising dollars in the midst of a challenging economic environment.
In order for us to return to growth in this important area, we are focused on attracting new retainer-based clients while helping our current clients with marketing solutions to help them grow their businesses. Greg, we will now open up the line for questions.
Operator: Thank you. [Operator Instructions] And at this time, there are no questions.
Katy Murray: Well, Greg, thank you. Thank you, everyone, for joining our call. I’m sorry, Greg?
Operator: You just had one queue up. Would you like to take that question?
Katy Murray: Absolutely.
Operator: Okay. That question comes from the line of Chris Mooney from Wedbush Securities. Please go ahead.
Chris Mooney: Hi. Good morning all.
Katy Murray: Good morning, Chris.
Chris Mooney: The 608 headcount, where do you anticipate that going to by the end of the year?
Katy Murray: Chris, as we announced earlier – probably about a month ago, we did have a – we’re having a voluntary severance offer. We expect probably about maybe 40 or so people to take that, give or take. We don’t know yet. There was not a set target. We didn’t have any kind of specific headcount number or expense number. So, I expect that this number, we will probably be – we’re going to be below 600, probably maybe 580, 570, just depending on what we do with the DSO. And again, that’s just to be determined.
Chris Mooney: Understood. And the cost of this will appear in the fourth quarter. Will it roll into the first quarter as well?
Katy Murray: No, it won’t. The cost of the offering in the program will be fully booked in the fourth quarter. And while there may be cash payments in 2024, the expense will be in 2023.
Chris Mooney: Okay. And what was the union response to this?
Katy Murray: As part of our collective bargaining agreement, we have the ability to offer a voluntary severance offering whenever we would like to, so there really was no response from the guild.
Chris Mooney: Okay. Thank you.
Katy Murray: Thank you, Chris.
Operator: [Operator Instructions]
Katy Murray: Okay. Well again – Greg sorry.
Operator: There are no further questions.
Katy Murray: Greg, thank you. Everyone, thank you again for joining our third quarter call. We look forward to a great fourth quarter, and we’ll have our earnings call in the first quarter of next year. And for those of you in Dallas and Texas, go Rangers.
Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Teleconferencing. You may now disconnect.
