New York Times explains the two reasons it thinks newspapers should refuse Apple News deal 9to5Mac

The New York Times said in advance this week that it had declined to join the approaching Apple News subscription provider. The Washington Post has reportedly made the equal decision.

CEO Mark Thompson has now long past similarly, warning different papers of the twin dangers of accepting Apple’s deal …

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Thompson told Reuters the primary difficulty is misplaced subscriber sales.

A monthly virtual subscription to the New York Times prices $15, and Thompson stated he has no plans to offer that up to participate on different platforms together with Apple’s.

Last year, the Times generated over $700 million in digital revenue, near the corporation’s target of $800 million in annual virtual sales by way of 2020. Digital ad revenue exceeded print advert revenue for the primary time in the fourth quarter of2019. The Times has plowed investment again into its newsroom, which at 1,550 reporters is now at its biggest ever.

Apple is said to be keeping 50% of subscription revenues and be splitting the stability among all the publishers on a seasoned-rata foundation consistent with the resources clients read. This is a deal unlikely to make experience to lots of the pinnacle 10 US papers.

But an arguably greater risk is what's going to take place over the medium-time period.

Mark Thompson, leader executive of the biggest U.S. Newspaper with the aid of subscribers, warned that relying on third-birthday party distribution can be dangerous for publishers who threat losing manipulate over their personal product.

“We have a tendency to be quite leery approximately the concept of just about habituating human beings to find our journalism somewhere else,” he instructed Reuters in an interview on Thursday. “We’re additionally generically worried about our journalism being scrambled in a type of Magimix (blender) with everyone else’s journalism.”

Thompson argued that accepting Apple’s terms could be handing all of the power to the Cupertino organization, and that choice became in all likelihood to come back back to chunk courses which joined in. He said classes may be discovered from the Netflix experience, in which broadcasters fortuitously offered their content to the video streaming service, most effective to locate that it changed into a one-sided deal further down the road.

“Even if Netflix offered you quite numerous cash. … Does it surely make experience to assist Netflix build a tremendous base of subscribers to the factor in which they might really spend $9 billion a year making their own content material and will pay me much less and much less for my library?” he requested.

The identical risk applies right here, he suggested, where Apple News will become the primary brand, beginning the way for Apple to write down their personal information content at a later date.

Apple is because of announce Apple News alongside its streaming video carrier at a Services-focused event on March 25. Apple has reportedly controlled to sign up the Wall Street Journal, but it’s not acknowledged whether or not different principal guides are on board, even though Vox has seemingly finished so.

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//9to5mac.com/2019/03/22/new-york-times/
2019-03-22 12:09:00Z
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