Apple will be supposed to launch an ambitious brand-new entertainment in addition to paid digital news service on Monday, as the iPhone maker pushes back against streaming video leader Netflix. although the item likely will not feature the brand-new York Times.
Mark Thompson, chief executive of the biggest U.S. newspaper by subscribers, warned which relying on third-party distribution can be dangerous for publishers who risk losing control over their own product.
“We tend to be quite leery about the idea of almost habituating people to find our journalism somewhere else,” he told Reuters in an interview on Thursday. “We’re also generically worried about our journalism being scrambled in a kind of Magimix (blender) with everyone else’s journalism.”
Thompson, who took over as brand-new York Times CEO in 2012 in addition to has overseen a massive expansion in its online readership, warned publishers which they may suffer the same fate as television in addition to film makers from the face of Netflix’s Hollywood insurgence.
“If I was an American broadcast network, I would likely have thought twice about giving all of my library to Netflix,” Thompson said in response to questions about any talks with Apple to participate from the iPhone maker’s brand-new news service.
Thompson declined to comment on any conversations with Apple. although he used the tale of how Netflix made huge inroads into Hollywood to explain why the Times has avoided striking deals with digital platforms in which the item had little control over relationships with customers or its content.
“Even if Netflix offered you quite a lot of money. … Does the item truly make sense to help Netflix build a gigantic base of subscribers to the point where they could actually spend $9 billion a year generating their own content in addition to will pay me less in addition to less for my library?” he asked.
In 2007 the answer for Hollywood was yes. In exchange for billions of dollars, studios helped Netflix launch a fledgling streaming video service by licensing their libraries of shows in addition to movies, although which decision may have sown the seeds of their own demise.
By 2016, Time Warner was forced to sell itself to AT&T in addition to Rupert Murdoch sold his 21st Century Fox film in addition to TV studios to Walt Disney.
Apple will be the latest company to offer a direct-to-consumer streaming video, along using a news subscription service, by leveraging the power of its more than 1 billion devices.
Through its subscription news service, Apple will charge about $10 monthly for access to a variety of magazine in addition to newspaper content, according to media reports. Apple will be supposed to take 50 percent of the revenue. The Wall Street Journal has agreed to join Apple’s service, according to a recent brand-new York Times report. News Corp, owner of the Journal, was not immediately reachable for comment.
A monthly digital subscription to the brand-new York Times costs $15, in addition to Thompson said he has no plans to give which up to participate on some other platforms such as Apple’s.
Last year, the Times generated over $700 million in digital revenue, close to the company’s target of $800 million in annual digital sales by 2020. Digital ad revenue surpassed print ad revenue for initially from the fourth quarter of 2018. The Times has plowed investment back into its newsroom, which at 1,550 journalists will be today at its largest ever.
Despite the company’s insistence on keeping readers on its own products in addition to platforms, Thompson said the item has experimented on some other services, highlighting content the Times developed just for Snap Inc’s Snapchat app, which helped reach brand-new, younger readers.
These brand-new audiences, he said, will play a big role in helping the Times reach its brand-new target of 10 million subscribers by 2025.