$10 per month all-you-can-eat from 300-plus publishers

Source: The danger of ‘I already pay for Apple News+’ | TechCrunch

 

Apple News+ sounds a lot more like Netflix in its early years to me. Over time, when publishers realize that “yes, this is indeed a losing proposition for us, in favor of the customer”, they’ll either launch their own similar services, or threaten to pull out of News+, or throw tantrums, which will mean a slowly increasing cost of News+ over time.

The problem here, that Netflix must respect and Apple won’t, is that news is not a single source thing for the most part. If there’s an in-depth report that people want, but only Bloomberg provides, then Apple will either need Bloomberg (just like Netflix needs Friends), or will have to provide à la carte options the way Hulu does. But for most other news, if I can’t get it from publisher A, then I’ll just read Newspaper B’s report. Apple is making it easier for customers to ignore who the source is, just like Facebook did and Google AMP does. Good for consumers, bad for brand recognition.

Yes, this will open up a new avenue for some, and will be great for customers, and will break niche storytellers (of the LongReads types) and also big newsrooms. But you can’t blame Apple on capitalizing on a broken market. They’ve had a long time to fix this. So many business models have come and gone, from Better Ads, to services that allowed people to pay a monthly fee for ad-free experiences on a set of participating sites, to stupid stuff like Adblocker Blocker. The industry has fumbled through everything but collaborating and making their own version of News+ where they wouldn’t have had to pay Apple fifty cents on the dollar.

Just like Netflix broke an already dying business, and reinvented the way we consume TV, News+ is poised to do the same. Thing is, the innovation cycle has sped up this time and you’ll be seeing News+ competitors as early as next year. First, it’ll be half-assed attempts by Samsung, Microsoft, or Google, and then publishers themselves, who will shoot themselves in the foot by giving customers limited options (one reason I’m not subscribed to online services like CBS). What’s worth seeing is if they’re able to band together and learn something from this experience.

Apple acquired the magazine industry’s self-distribution app Texture a year ago

I was looking at solutions around this some time ago (just idle browsing, mind you) and realized that Apple had bought Texture and done nothing with it. The News app is not a natural extension of what Texture did, but News+ is. Good for them.

More than anything, it seems that Apple wanted to build a product around magazines for iPad consumers, and news media was an afterthought that just happened to be in need. When Apple announced News+, I thought it was the opposite, but the Texture explanation makes sense.

That means those magazines are likely to absorb a ton of taps and engagement time before users even make it to the WSJ, which will then only score few cents per reader.

I don’t know how Netflix pays their sources, but this is how Spotify pays theirs. As a consumer of Indian music, I have to push Spotify’s constant prattle of American artists aside to get to the music I want to listen to. But thems the chops. If publishers want more engagement, they need to now build a better relationship with Apple. This means the smaller ones will absolutely suffer. They should keep out of News+