News apps: the key to a reader-funded business model?

On November 8th took place the PPA Independent Publishers Conference in London. There, Juan Señor, of Innovation Media Consulting, said that ‘the decision to give our content away for free was the single biggest mistake publishers have made’ (Evelegh, 2019), and as such, he thinks that publishers should change their online business model from ad-funded to reader-funded. In short, make people pay to read the articles. At the same time, a study showed that half of publishers’ revenue still comes from direct sold ads, while subscriptions only make for 20% of their revenue (Bhattacharjee, 2019), even though they can help shift to a reader-funded business model. As such, how can news publishers incite readers to subcribe to their newspapers?

It seems publishers have placed their bets on apps, to reward the most loyal readers (Thorpe, 2019). Indeed, in November, the Guardian released their Daily app on mobile. It goes beyond the digital newspaper, with ‘thoughtful design, easy navigation, and improved user experience’ (InPublishing, 2019). Available as part of the Guardian’s digital subscription, it allows readers to read the complete editions and swipe through different stories. Caspar Llewellyn Smith, who works for the Guardian, said that ‘the Daily is a beautiful new product that emphasise our strengths in photography and design’ (InPublishing, 2019). It gives readers more flexibility and freedom when it comes to the news they want to read, therefore adding value to the newspaper.

At the same time, The Atlantic launched its subscriber-only app, two months after launching its digital subscription model (Barber, 2019). The app is free but people have to subscribe to read the articles. However, the app offers more flexibility than the website. Readers subscribing on the website have to pay upfront for the whole year, whereas readers subscribing on the app can pay month to month. The app is ‘a more personal and habit-forming platform’ in the words of Andrew Phelps, senior director of the product (Barber, 2019), and therefore supplements the print newspaper. It is updated twice a day and features breaking news, feature stories, and articles that only exist on the app, which, according to Michael Owen, deputy editor of The Atlantic, allows them to ‘demonstrate the human involvement’ (Barber, 2019). Matt Skibinski, reader revenue adviser for The Lenfest Institute, said that while most publishers focus their attention on desktop, mobile apps offer an interesting opportunity, as more consumption happens on mobile (Barber, 2019).

While these apps’ target audience is in the country the newspaper is based in, news publishers are also trying to reach international readers. The Washington Post, for example, launched a subscription offer for mobile app users in India (Willens, 2019), while The New York Times produced articles in other languages like French and Chinese. It even started a project called NYT en Español, a distinct product with its own subscription infrastructure.

Reaching this new audience could help boost news publishers’ revenue, however, ‘the concept of news subscriptions [is] still gaining a foothold in many markets’ (Willens, 2019). As of now it is not as popular in international markets, as ‘just 16% of American readers have paid for news of some kind in the past year, and the percentages in most other countries are at about the same levels, if not lower’ (Willens, 2019).

To conclude, it can be said that apps can generate more subscriptions, as they add value to the print newspaper, and, as Jonny Kaldor, Co-Founder and CEO of Pugpig, said ‘engagement in apps is significantly higher than what can be achieved on the web’ (Thorpe, 2019).

• Evelegh, J. (2019) ‘Only journalism will save journalism’, InPublishing, 14 November. Available at: https://www.inpublishing.co.uk/articles/only-journalism-will-save-journalism-14933 (Accessed 26/11/19)
• Bhattacharjee, M. (2019) ‘Publishers still rely on traditional revenue streams, research shows’, What’s New in Publishing, 19 November. Available at: https://whatsnewinpublishing.com/publishers-still-rely-on-traditional-revenue-streams-research-shows (Accessed 26/11/19)
• No name (2019) ‘Guardian releases newly designed Daily app’, InPublishing, 18 November. Available at: https://www.inpublishing.co.uk/articles/guardian-releases-newly-designed-daily-app-14874 (Accessed 26/11/19)
• Barber, K. (2019) ‘The Atlantic is launching a subscriber-only app’, Digiday, 12 November. Available at: https://digiday.com/media/atlantic-launching-subscriber-app/ (Accessed 26/11/19)
• Thorpe, E. (2019) ‘As publishers return to apps, are audiences finally prepared to pay?’, What’s New in Publishing, 21 November. Available at: https://whatsnewinpublishing.com/as-publishers-return-to-apps-are-audiences-finally-prepared-to-pay (Accessed 26/11/19)
• Willens, M. (2019) ‘How news publishers are chasing international subscriber growth’, Digiday, 26 November. Available at: https://digiday.com/media/how-news-publishers-are-chasing-international-subscriber-growth/ (Accessed 26/11/19)