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

Dan Kennedy

May 24

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.