Apple News Plus: Promising, or just another example of promises, promises?

Photo (cc) 2019 by Lisa Main Johnson

There was a time in the not-too-distant past when news organizations were all-in on social media as a way to distribute their journalism. But that was then. In recent years, Facebook has fiddled with its algorithm repeatedly in order to play down the amount of news that will show up in users’ feeds. Actual partnerships with the likes of The Washington Post are a thing of the past. Google is unreliable. And let’s not get started with what has happened to Twitter/X, the other main source of click-throughs to news stories.

To compensate, media outlets doubled down on newsletters, which don’t drive as much traffic as social but which do have the advantage of being under their control. Of course, all this is playing out at a time when many if not most newspapers and magazines have put their journalism behind paywalls, which further degrades the value of relying on social. A click from Twitter doesn’t mean much if the clicker can’t read the story they’re interested in or — more to the point — see the ads.

Now we’re experiencing a bit of excitement over a newish platform: Apple News Plus. The free version comes preinstalled on everyone’s iPhones and Macs. For $12.99 a month, you get a whole lot more (though not The New York Times, which is skeptical).

Apple News Plus got a big boost earlier this week when Semafor media reporter Max Tani wrote a mostly favorable story. He begins with quite an anecdote about The Daily Beast, which had been on the ropes as its reliance on Facebook and Google was resulting in a dwindling number of clicks. Thanks to its partnership with Apple News Plus, though, the Beast is on track to earn between $3 million and $4 million this year, more than its own in-house subscription program.

Better yet, you don’t have to click through. Stories load instantly and in many cases are more attractive than the publications’ own websites. Tani writes:

The Beast is hardly alone in its increased reliance on the iOS [and Mac] news aggregator. The free version of Apple News has been a source of audience attention for news publishers since it launched in 2015. But while many publishers have come to the conclusion that traffic has less business value than they once thought, they’re still desperate for revenue. Executives at companies including Condé Nast, Penske Media, Vox, Hearst, and Time all told Semafor that Apple News+ has come to represent a substantial stream of direct revenue.

Which raises a question: Haven’t we been down this road before? Indeed, Facebook and Google both experimented with partnering with news organizations and republishing their content on its own platforms, but those arrangements ultimately came to a bad end. Needless to say, Apple News Plus also privileges national publications over local media outlets. Tani mentions partnerships with large regional newspapers such as The Philadelphia Inquirer and The Atlanta Journal-Constitution, but it’s hard to imagine that they’ll get down to the level of hyperlocals that cover small communities and neighborhoods.

Chris Krewson, the executive director of LION (Local Independent Online News) Publishers put it this way on Twitter: “Every time I watch this movie the ending is the same.”

Let me point out another problem. A few large newspapers, both national (principally the Times and The Wall Street Journal) and regional (including The Boston Globe and the Star Tribune of Minneapolis), have achieved profitability on the strength of digital subscriptions. Key to that is that they get all the revenue. The Globe’s non-discounted digital subscription rate of $30 a month is more than double what you’d pay Apple, and that money is being split among all of the media partners that are taking part, as well as with Apple itself.

Journalism is expensive, and news organizations with large reporting staffs need as much subscription revenue as they can get. What Apple is offering, essentially, is iTunes for news, an idea that the late David Carr was promoting 15 years ago. There are good reasons it’s never caught on — until now, maybe.

Long-term, no tech company is going to be a reliable partner for news organizations. Apple is attractive in ways that Facebook and Twitter never were: it’s not a social network, and charging subscriptions for users provides a more solid underpinning than anything the platforms offered. And of course journalism should take advantage of what Apple is offering. At this late date, I think every news executive knows the rug could be pulled out from under them at any moment. But they ought to take the money while it’s there.

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Omnibus spending bill reportedly omits assistance for local news

The U.S. Capitol. Photo (cc) 2013 by Mark Fischer.

The $1.7 trillion omnibus spending bill that’s making its way through Congress reportedly contains nothing to ease the local news crisis. An emailed news bulletin from the trade publication Editor & Publisher, citing unnamed sources, reported this morning that both the Journalism Competition and Preservation Act (JCPA) and the Local Journalism Sustainability Act (LJSA) have been excluded from the bill.

For those of you who don’t follow these issues obsessively, let me unpack this a bit.

The JCPA would allow an antitrust exemption for news organizations so that they could bargain collectively with Google and Facebook for a share of their advertising revenues. You often hear news executives complain that the giant platforms are republishing their content without paying for it. That is a serious distortion. On the other hand, there’s no doubt that Google and Facebook, which control about half the digital advertising market, benefit significantly from linking to and sharing news.

The LJSA would create three tax credits that would benefit local news organizations. The first would allow consumers to write off the cost of subscriptions. The second would provide a tax benefit to businesses for buying ads. The third would grant tax write-offs to publishers for hiring and retaining journalists. That last provision was included in President Biden’s Bill Back Better bill, which Senate Republicans, joined by Democratic Sen. Joe Manchin, killed last year.

The demise of the JCPA is not entirely bad news. I thought it might be worth giving it a try to see what the two sides might come up with. Still, there was a lot of merit to the argument made by critics like Chris Krewson, executive director of LION (Local Independent Online News) Publishers, that most of the revenues would be diverted to large legacy newspaper publishers — including those owned by corporate chain owners and hedge funds — rather than to community-based start-ups.

The LJSA, on the other hand, was more intriguing, even though it would also benefit legacy newspapers. For one thing, the tax credits could provide a real lifeline to small local news projects. For another, the third provision, for publishers, would reward the large chain owners only for good behavior — Gannett and Alden Global Capital could not tap into that credit if they keep laying off journalists.

I’m guessing that this is the end of the road for both proposals given that the Republicans will take over the House in the next few weeks. That’s not entirely a bad thing. As Ellen Clegg and I have found in our research at “What Works,” local news organizations across the country, from for-profit legacy newspapers to nonprofit digital start-ups, are finding innovative ways to continue serving their communities.

The economic challenges facing news organizations is real, but in many cases they can be managed with innovative thinking and committed local ownership.

Finally, here are a couple of “What Works” podcasts that will bring you up to speed.

Chris Krewson of LION Publishers on the future of digital local journalism

Chris Krewson

Chris Krewson is the executive director of Local Independent Online News Publishers, better known as LION Publishers. The national nonprofit aims at supporting local journalism entrepreneurs and has some 400 members. He speakers with Ellen Clegg and me on the latest “What Works” podcast.

LION tapped Chris as its leader in 2019, and he brings significant digital experience to the job. In fact, he’s had many prior lives. He was the top editor at Billy Penn, a mobile-first local start-up in Philadelphia launched by the legendary Jim Brady that’s now part of public radio station WHYY. He’s also the former top digital editor for Variety, The Hollywood Reporter, The Philadelphia Inquirer and The Morning Call of Allentown, Pennsylvania.

I’ve got a Quick Take on a Poynter Online essay by Kathleen McElroy, director of the School of Journalism and Media at the University of Texas at Austin, who urges local journalists to consider staying in the game by publishing a local newspaper. Ellen discusses the new Harvey World Herald online site, which fills a need in a news desert just outside of Chicago.

And Chris clears up a crewcut pop-culture mystery for Ellen.

You can listen to our conversation here and subscribe through your favorite podcast app.