Blendle pivoted away from micropayments. Did it miss the pivot to aggregators?

As we wrote about in this week’s Pugpig Media Bulletin, there was quite a bit of chatter about Blendle shutting down its micropayment service in journalism circles. Digging a little deeper, my team member James and I looked at both the micropayments model and also why Blendle didn’t live up to the hype that met it when it expanded from its base in the Netherlands in the middle of the last decade.

The central focus has been on what this means for micropayments, and it definitely raises questions about the place that micropayments play in the subscription stack. As my colleague James pointed out in the piece, micropayments increase conversion challenges because you constantly have to convince people to pay. And I’ve seen a number of different models to reduce this friction, but they all require network effects that no micropayment system has ever been able to achieve. Meaning, a micropayment provider needs to reach a scale so that they make sense for users. Or a publisher might add micropayments for those potential subscribers who just want to read a single article - a day pass for those loosely connected audiences. And we are seeing that with the new generation of dynamic paywall systems.

But more than the issue around micropayment, looking at Blendle, it seemed that they focused too much on the payment system and missed the pivot to aggregators, which they could have made with the high-profile early backers they had. Blende missed a pivot that could have made them a much bigger player, especially for mobile aggregators like News Break. I have to wonder if all of the attention that they received for micropayments blinded them to an opportunity to the shift in user behaviour and the market. Instead, they were acquired by Cafeyn - an ‘information streaming’ service aka an aggregator.

Before the pandemic, events were a huge revenue driver for publishers, especially financial newspapers like the FT or B2B businesses. But COVID really dented that business, which is an understatement. While publishers are looking to events as an important source of revenue, there are other pressures or motivations driving publishers, and FIPP reviews how environmental imperatives are also being taken into consideration. It will be a difficult balance between the drive for face-to-face networking, costs and environmental imperatives.

I am always on the lookout for great resources, and the Washington Post has shared its guide for optimising web performance, including SEO.

This week’s development in AI and media

I do feel a bit like a broken record about all of these AI stories, but it is good to see this guidance from AP about how to describe generative AI systems. Language matters, and there has been laziness in describing what large language models are doing.

And we have the latest installment in what will be an important front in the battle between AI companies and publishers. The New York Times is considering suing OpenAI. It might well be a legal gambit by the Times to improve their negotiating position with OpenAI, the makers of ChatGPT, but we will see a lot more of this.

As Google makes progress on the technology that many publishers fear, which is a system in which chat services mean that users do not have to come to publishers’ websites to get the information that they need. This will challenge publishers to find a new way to monetise their content, and this is why publishers are putting renewed emphasis on building direct relationships with their audience. These developments will put more distance between ad-based volume publishers and reader-revenue value publishers.

As someone who has been fortunate enough to navigate many changes in media, this is a good list of how to navigate changes in your media career. It is a good resource.

The stories have been rolling out about how engagement has collapsed on Meta’s Threads in a short time after its introduction. Can Zuck’s team pivot the product fast enough to re-engage lost users? (I am re-engaging because it is still a nicely quiet social media space.)

Sigh. This week’s drama at Twitter X is that Musk is throttling links to the New York Times, Reuters, Substack and Facebook. I guess this is the cage fight with Zuck. Social media is really becoming a soap opera.

A very deep dive into Community Notes, a new Twitter feature. This looks at how the algorithms work that surface the notes.

The New York Times’ Bundling Strategy: When carrots stop working, sticks will do

I have been a New York Times digital news subscriber for years now, and they have been working to get me to graduate to their higher priced and richer bundle for a while now. I’m paying $17 a month news, and $25 a month will net me the full suite of New York Times products - cooking, games and reviews.

And I get it, multi-product users of any publisher are much easier to retain than single-product customers. That is even true with print. If a publisher is able to get a print subscriber to use a digital product such as an app or games, then it is much easier to retain them. And apps as a platform and games as a content type are the highest engagement products in publishing.

However, as the Press Gazette points out, the New York Times is now pushing the bundle to the exclusion of a news-only subscription or other standalone subscriptions. New or existing subscribers will get a heavily discounted bundle but they won’t get the same cost savings for the standalone products, and the Press Gazette says that it the Times is even making it more difficult to buy a standalone news package. It will be interesting to see how far the Times can push this. People like choice, and they don’t want to go the way of cable TV and offer a package that audiences don’t want. Fortunately, the price difference between a standalone news subscription and the full-price bundle isn’t that great. But it will be interesting to see how consumers respond.

Suw, my wife, is a Substack convert, and I think what links Beehiiv, which I use for this newsletter, and Substack are the audience development tools. Newsletter tools have gone far beyond ESPs. Beehiiv has a referral system, and Substack is working on leveraging network effects to allow writers to build their audiences. I think that Substack is really onto something with Notes and other features that create a sense of a newsletter community. If Substack can work a bit on opening up the top of the funnel, then I think they will really have cracked the newsletter eco-system. Newsletters are a real hustle, but these systems open up the possibility of real audience growth that supports a wider range of newsletter businesses.

Today’s Developments in AI: NYTimes updates Ts & Cs to cover AI scraping, News Corp looks to cut costs using AI and Digiday’s definitive AI glossary

I have to say that I have a lot of sympathy for publishers, artists, writers and musicians who want licencing agreements from AI companies who train their machines on their journalism, music or other artistic output. Frankly, it simply feels like just compensation, and I don’t accept that AI companies without a proven business model today need free access to IP. The New York Times is laying out what it expects from AI companies, and I would expect this type of ring-fencing of IP to become common. Companies should be able to know how their content is being used by AI companies and be able to decide if they want their IP being used in this way and if so, how they will be compensated.

News Corp is looking at both sides of the ledger with AI - as a way to generate new profits through licencing and also as a way to cut costs.

The presses are indeed stopping

Newspapers aren’t the only ill part of the print media eco-system but also the physical printing infrastructuve that supports print. In the US, newspaper printing is increasingly concentrated, meaning not only are they less competitive but also that for newspapers, the printing presses are farther away from audiences. It used to be a bit of a media analyst game to predict when the last printed copy of a publication would roll off the presses, but these developments mean that it is likely only a few years off before print becomes uneconomic.

I don’t usually include stories like this in the newsletter, but this story is different for a number of reasons. It is a shocking step by local law enforcement in the Land of the First Amendment, and it is a personal story. I know the owner and editor of the newspaper, Eric Meyer. He taught journalism where I studied as an undergraduate, the University of Illinois. He taught after I had graduated, but we connected when I was working as a regional executive editor at Gannett.

This story is just beyond shocking, and it demonstrates a profound ignorance about journalism, public records and even the laws of the United States. The press, a nearby journalism school and civil liberties groups have all rallied around Eric and his newspaper. I think this is the result of the criminalisation of journalism by political leaders, including former President Trump.

How chasing scale led publishers to focus on low-value users rather than revenue

It’s been another busy week at Pugpig so I’m writing another weekend edition of the newsletter, and I wanted to flag up something that we wrote about in the weekly Media Bulletin that we write. It is a great summary of a podcast interview on Subscribe Now on one of our favourite sites - the Audiencers. Lennart Schneider, the host of Subscribe Now, interviewed Selma Stern, the chief customer officer of Fortune.

Here was my summary of the conversation in our Media Bulletin:

The conversation is a good reminder of how having the wrong KPIs can lead to the wrong outcomes for a business and that no matter how solid your KPIs are that the success of achieving those goals comes down to the teams that deliver them. Silos and a lack of diversity in backgrounds, thinking and skills are a recipe for frustration, friction and failure.

The interview reinforced my view that in chasing reach publishers optimised growing large but only casually connected audiences. The belief is that by having a sizeable audience that advertising revenue would pay the bills, but it isn’t playing out that way. No matter how large the audience, advertising isn’t paying the bills and is an uneven revenue stream. Advertising has a role to play in revenue strategies but only part of a diversified revenue strategy. However, as Stern points out, chasing large audiences without revenue goals have led to the poor outcomes.

And here is a data-point about the challenges of ad-driven, scale businesses and how the big chains will focus on using AI to cut costs and extract value from their IP rather than delivering value to audiences.

Micro-payment ‘poster child’ abandons the strategy

Dutch media payment provider Blendle was held up a decade ago as proving an ‘iTunes for news’ model. I have always been sceptical of the model because news isn’t like music. I listen to my favourite songs over and over, but news has a short shelf life.

There is evidence that some people start a trial subscription so that they can read only a single article, and that might be a good use case for micro-payments. But Blendle has found that there is ‘very limited’ demand for one-off article payments. Instead, users prefer all-access subscription bundles. It is a useful reminder of how the paid content landscape has shifted and how publishers need to be nimble to adapt to consumer preferences.

What’s New in Publishing has a good piece about the challenges for UK publishers as they enter the US. Language and differences around political partisanship are just two challenges for British publishers. As someone who was at The Guardian when they launched one of their initial forays into the US, I would also say that British publishers misunderstand one critical element of the media market there - TV. TV news still remains a major source of news for American audiences.

The podcasting boom that occurred during the pandemic has cooled, but as with most media sectors, that has meant consolidation so that major networks are still finding opportunities for growth.

Steven Waldman, the co-founder of Report for America, says that supporting local news would pay for itself by curbing local corruption.

With the fires raging in Hawaii, the Reynolds Journalism Institute highlights how newsrooms have popped up to cover wildfires in the past.

Australian public broadcaster ABC has decided to shut down most of its accounts on the social network formerly known as Twitter.

AI will bring disintermediation and efficiencies to media. LSE’s Charlie Beckett discusses how that might play out

Two really smart people - Damian Radcliffe of the University of Oregon and Charlie Beckett with the Polis media think tank at LSE - have come together for a conversation about AI. Charlie has been the driving force behind the JournalismAI project, and this work has been way out ahead of the recent surge in interest in AI spurred by the release of a version of ChatGPT last November that suddenly brought the technology to the larger public.

Two things jumped out at me: disintermediation and efficiencies/overabundance, the last two issues I see being linked. As Charlie points out, disintermediation is a little way down the road. This is the fear that AI-driven chat services will provide people with answers and news so that they don’t need to go to publishers’ sites. It will be another way in which technology gets in the way of publishers’ relationships with their audiences and also the commercial benefits that come from those relationships. The second issue is really at the crux of AI and publishing: How will publishers use it? Will they use AI to free up journalists to do more reporting and create more original, more engaging content experiences? Or will they use the technology to generate more redundant content that simply overwhelms audiences?

And Charlie makes a really good point, if publishers are able to drive efficiencies with AI, will they use the funds to reinvest in the business or simply to enrich investors or buy back their own stock. Goodness knows that many news publishers will have a motivation to prop up their stock values. It’s a clear-headed overview that helps set up the timelines and some possible implications of the technology.

And here is how it is being used in the US, in the state of New Jersey. Questions are raised about a small local publisher using AI to generate news reports from local government meetings. I would guess that it summarises the meeting transcripts. But they aren’t checked, only corrected after the fact, which raises a lot of questions.

As I have said, at Pugpig, we’re currently working on a report about retention, and we touch on the issue of zombies, those subscribers, or known audiences who have become disengaged with your content. Dominic Young says that you don't need to fear them, and based on his business, he thinks a pay-as-you-go option is one way to re-engage with these audiences.

For those audience engagement editors out there, this is a really well-thought post about a local newspaper in the US trying Meta’s new Twitter-esque text social network, Threads.

A few of their takeaways that stood out for me:

  • It’s not about breaking news updates.

  • A strong community feel, usually published during the afternoon. (And that time has always been solid for social media posting. In fact, we used to see a social spike after 4 when people seemed to be wanting to pass some time before quitting time.)

  • For this publication, the posts did best when they focused on local issues and the community.

An interesting look at how Norway’s VG is handling corrections. There are some excellent ideas here about how to increase transparency and ultimately trust.

Archives can be the source of a tremendous number of stories, and it has become one of the trends for a certain class of well-to-do publication with deep archives - think the New York Times and The Atlantic. Now the Wall Street Journal is getting in on the action. This is such a good product idea. Even the small newspapers I used to edit in Wisconsin have their own Throw-back Thursdays. So smart and likely to generate some excellent business.

This is so sad and depressing. A woman working for the BBC covering misinformation and disinformation receives a vast majority of online abuse. Trolls are gonna troll. But when is society going to say enough is enough?

The NFT is definitely cooling down.

How media can manage the social media meltdown driven ‘crisis of discovery’

It was a busy week so this is a rare weekend edition of the newsletter, but that gives me a little more time to think and share a few things a bit farther afield but still relevant to media. It seems like a lifetime ago that I met Robin Sloan at Poynter. It was right before I moved to the UK the first time in 2005, and he and Matt Thompson created Epic 2014, a rather dystopian vision of the media future that actually hasn’t come to pass, at least in the same way. They predicted that the New York Times would go offline and Google and Amazon would merge. Interestingly, Matt now works as an editor at the New York Times.

Robin, like Matt, has continued to do interesting things, and in his most recent newsletter, he described what he called as a “crisis of discovery”, which is to say that many of the tools that media and publishers had come to rely to connect their content with audiences have been wilfully degraded. Facebook has engaged in a public divorce with journalism, and Elon Musk’s Twitter lurches daily from one drama to the next with no particular direction apart from vague but unrealised vision to become a Chinese-style super-app. And the fear that AI will completely remake search into an information-hoovering destination instead of a referral are rampant. Search and social have been the pillars of content discovery.

However, in some ways, Robin’s newsletter is an example of one of the new discovery channels that have developed. Yes, newsletters have become a valuable discovery tool for me. His newsletter highlighted a number of really interesting things, and I found out about his newsletter through another channel where I find interesting things and mine for knowledge - Slack. I was recently invited to publishing-focused Slack, which has become a much more interesting space than I had expected.

I will leave you with this important and choice quote from Robin about how to respond to all of this disruption:

The strategy is the same as it always was: cultivate small, sturdy networks of affinity and interest. Connect them to each other. Keep them lit.

And this underlines the crisis of discovery when Google and Meta can cut off links to publishers because they don’t like the regulatory changes made by a government in the public interest.

Meanwhile, the response to the Canadian bill that has led to the blocking by platforms has been varied with broadcasters and most publishers blasting the move but others saying that the regulation is harming journalism and local communities’ access to information.

Niche business publishing is having quite a good run as opposed to consumer publishing, and one of the reasons is the number of revenue streams that can be attached to it. What’s New in Publishing, soon to be rebranded as Mx3, highlight how medical publisher Karger has expanded into new markets and developed new products including online courses, communications and awards. Being in the lucrative medical field gives them certain advantages, but the diverse revenue model is something that has become quite standard operating procedure.

While there is a lot of anxiety on the editorial side of publishing about artificial intelligence, there has been wider adoption on the commercial side of the business. AI for commercial teams includes driving a lot of process efficiencies. In a lot of ways, it can be a good template for the editorial side of the business as well. AI can reduce a lot of repetitive drudgery.

Poynter has some excellent examples of how local news outlets in the US are using AI to ensure that reporters have more time for original reporting. AI cannot do reporting, and by leveraging what it can to do add value for local audiences, it is smart.

A good summary of a podcast episode with Fortune Chief Customer Officer Selma Stern that highlights how publishers are adapting to the challenges in media right now. I like the clear-eyed case made for diversity. It brings in different points of view and can help curb the impulse to group think. Bridge roles are also important in helping to make sure that different parts of an editorial business are in alignment with their goals. I led an initiative in my last job to refine our digital processes because it was clear that they overlapped in ways that our traditional organisation didn’t support. I especially like the part about metrics. I am in full agreement with Stern about the need to rethink metrics. There are too many publishers who still focus on reach to the exclusion of content performance metrics that drive engagement and revenue. It’s a good read and listen.

Last but not least, we have some research from UK media regulator Ofcom about the most popular types of content on social media. News comes in second. It came second only to ‘how-to’ videos on social media video platforms. Interesting read.

The skills that leaders need in a modern, tech-driven newsroom

I’ll start off this week with a good piece from my friends at WAN-IFRA on what it takes to be an editor in a modern, technology-driven newsroom. The piece is consistent with my own experience in that you need to be a generalist but build a team of specialists. It is a very product-y approach. Product in journalism scholar Damon Kiesow says, you have a T-shaped skillset - a deep skill in one area of expertise but then a broad and shallower expertise across the range of skills needed in a technology-filled newsroom. No one can be an expert in all of the areas that comprise the work environment. However, it is a tension in product management and newsroom management that you have to have some literacy in all of the areas that you manage. It’s a fine balance.

Download this now: A free e-book on project management in newsrooms

Project management is one skill set that I have really grown to appreciate since joining Pugpig and making the shift from being a technically-minded, product-thinker in editorial organisations to a consultant for a software company that builds apps and websites for publishers. Robin Kwong, who has a great reputation due to his important work at the FT and Wall Street Journal, has just released a free e-book about project management in newsrooms. It’s a really useful resource, and I have to say that if you want to learn the secret of delivering innovation, it is really down to becoming proficient at project management.

Grounded in research from Google on what makes effective teams, Samantha Ragland with the American Press Institute looks at the importance of psychological safety. In this context, psychological safety is defined as “a shared belief held by team members that the team is safe for interpersonal risk-taking.” It is a key ingredient for innovation, and this is a good read on creating a strong, supportive culture that helps people to be their best and builds great teams.

Today’s AI Round-up: Developments and news from Sweden, Australia and India

The AI headlines in publishing keep rolling in, and I’ll just briefly summarise them.

Publishers and broadcasters respond to the changes in social media

As I have highlighted several times in the newsletter, the social media landscape is changing, and media is in an experimental phase as the strategies and platforms that had severed them so well over the past 15 years shift radically.

First off, The Guardian has a good overview of what Elon Musk’s overarching ambition is with X. It isn’t surprising that Musk with his history with PayPal would want to bring payments to X, but his broader ambition is to copy the uber apps in China such as WeChat that do much more than allow users to post micro-updates.

With Musk creating a lot of needless drama at Twitter, journalists and the organisations that they work for are experimenting with other platforms. The BBC announcing a six month trial on Mastodon is the biggest such experiment with the federated social service that I have seen. I will be really interested to see what comes of it, especially because the BBC tends to be very public and open with the results of its experiments.

And while I’ve highlighted the rapid user growth and stagnation that has happened with Threads, enetertainment and lifestyle publishers are experimenting with it, which makes sense seeing at Meta has been quite open that it doesn’t see this as a service catering to news. Whether that means that they are hostile to news on the platform or simply want to position it for a broader audience has yet to be seen. With Threads being so tightly connected to Instagram, I’m not suprised that entertainment and lifestyle publishers are dipping their toes into that pool. It seems a good git.

I’ll close out with a few other bits. Having done a lot of data journalism over the years, I try to keep on toip of the latest and greatest. A few examples are examplars of traditional news graphics being translated into the interactive space, but it’s a good round up nonetheless.

And we start to see what Vice will focus on in the future. Instead of publisher, it looks like it will be more of a production studio. It makes much more sense than what it was doing. We’ll see if they can leverage the brand.

News outlets in the Global South announce global ambitions

At the risk of falling into the trap that two data points make a trend, I have noticed something interesting out of WAN-IFRA’s recent Global Congress: Media outlets in the Global South are now expanding their ambitions globally. First there was the story about Clarín in Argentina looking to the US as a new market and now we have Nation Media in Kenya. Nation Media admits that most of its revenue, some 80%, comes from legacy products, and it wants to accelerate what it calls digital integration. It wants to be a go-to news source in Africa and beyond. They have set an ambitioius goal of re-balancing their revenue so that 50% comes from digital by 2027. Digital integration means that they are looking to streamline their existing five newsrooms across titles and broadcast outlets. At the moment, those newsrooms are all competing for resources. They first needed to integrate their workflow, and then they will tackle content stragegy. With a broadcast wing, I would say that they are uniquely placed to take advantage of the shift to video-based content.

Wirecutter used its Odes - “a short love letter to Wirecutter picks that have been beloved over time” - to create content on Instagram that drove affiliate revenue. The review site, which is owned by the New York Times, also used the reach of its parent company to drive double-digit revenue growth on Prime Day.

While social helped Wirecutter, it is not doing any favour’s to Reach in the UK. Some of their sites were heavily dependent on Facebook traffic, especially from instant articles it would seem. The hit to their revenue was grim, grim, grim. I consulted with Reach from 2016 to 2018. I love their teams, but it’s time for a new strategy. The one they have isn’t working.

This is a great example of how AI can help speed up processes. This is bread-and-butter application of the technology that does speed-to-text transcription and NLP to help speed the addition of metadata. It helps Reuters’ video customers find the video that they need.

See the story above. I would expect Meta to start de-emphasising news content quickly on their new Twitter-killer. I hear more and more journalists are feeling exhausted by the churn and burn on social platforms. There is much more emphasis by publishers on using social to build direct relationships with their audiences via newsletters, podcasts and apps.

While podcasts might have come off the boil that they experienced during the pandemic, they still have a role in audience development and engagement. And Spotify’s CEO says that this role is that they engage younger audiences - something that publishers are always looking to do.

The breakneck pace of AI announcements continues with the major tech companies all scrambling to take advantage of the buzz (and the market pop). While AI experts have decried ‘doomerism’, but it isn’t jus consumers who have concerns about AI. A growing number of IT specialists are also worried about the ethics of AI as well.

In the category of flash-in-the-pan social applications, those audio chatroom apps - Clubhouse, Twitter Spaces and Amazon’s Amp - seem to have failed to really grow beyond a small user base.

And for the former tech reporter in me, I am going to throw in a little less recent tech history. For those of us who have been around for a while, it often does feel like history repeating itself.

Publishers begin the battle over AI with platforms

First off, thank you to The Fix for positively mentioning my humble newsletter. Welcome to new readers. I publish a couple of times a week as the content merits and time allows. And if you like this newsletter, you might also like the newsletter that I write for my day job at Pugpig. Here is the last installment I wrote before going on my recent two-week holiday. Now, back to today’s newsletter.

It seems that there are only a few days since last November that AI hasn’t been in the headlines, and publishers have quickly taken stock of how their content has been and should be used to train LLMs. Big players like Bloomberg and plucky innovators like Skift are creating their own LLM products, but many other publishers want to be compensated for the value that LLM-based AI companies have already derived from their content. Players like Barry Diller and his IAC want big sums. This is the next battleground, and with regulators already feeling antagonistic toward platforms, publishers might have more success than in the past.

This is a classic Ansoff Matrix expansion strategy with both diversification and product development. Clarin has already grown their subscriber base in their home country of Argentina to become one of the top 20 publishers in the world based on its number of digital subscribers. Now, it is looking to build on its existing audience in the US and also launch new products including a football manager game.

This acquisition shows the value of community and focus. I have long used DPReview, and I’m glad that it was saved.

It’s a rebuilding year, but with new leadership, it looks like Jeff Bezos isn’t looking to sell but to make a new start.

Eight rounds of fundraising since 2017 as the company tried to raise enough money to replace the cash that they were haemorrhaging.

Josh Bentons is encouraging journalists to engage with AI more constructively. AI is like any tool, and journalists need to stay rooted in their values and their mission to ensure that they use AI constructively. He addresses a lot of the thorny issues that surround AI.

And the important thing is that editorial organisations need to engage with these issues before the pressures of deadlines. Max Tani shows how Insider is grappling with the issues now.

Social Media Update: Threads use declines and Twitter starts rollout of the super app with a branding update

Threads jumped out to 110m registered users within days, but data shows that activity has already dropped by 70%. But that doesn’t mean that we should start writing the obituary for it. Facebook iterates products quickly, and the first draft of this product will improve. The question now is whether Facebook can outpace Musk’s changes at X…

And then today, we have the latest installment of the rolling drama that is Twitter these days. Elon Musk demonstrates that his forté is not branding and that he ran out of ideas by wanting to rebrand Twitter as X and eliminate all of the bird-related branding. Musk has not been shy about his desire to remake Twitter as a Chinese-style Weibo über app. Musk needs more services attached to the product because advertising is down by half.

And we have CNN product manager Upasna Gautum taking a poke at Twitter’s CEO in explaining the product vision behind X.

Thoughts on the major shift in search and social traffic

Hello. I’m sending out a brief newsletter as I start two weeks of vacation. I’m unplugging to spend some much-needed time recharging with family and friends in the US.

As I take time off, the stories dominating my reading right now just underscore the fundamental shift that we’re seeing with major things that have underpinned media online for much of the last 15 years: The search and social landscape is undergoing profound shifts right now. Search accounts for about a third of referrals to publishing websites, and AI is threatening to upend what has been a very stable source of traffic for the industry over the last few years.

Traffic from social sites has been much, much more volatile, and as I have written about, this has meant the end of major digital publishers who road the social wave and generated a lot of traffic but found that generating a sustainable business from that traffic was much more elusive - think Mashable, Mic, Vice and Buzzfeed. These brands were once expected to dominate the 21st Century media landscape, and now, I expect most will be a soon to be forgotten footnote to the middle early phase of digital publishing.

And we see that publishers, especially news publishers, are trying to claw back some of the advertising revenue that they have lost to the Big Tech platforms through regulation. However, as we’re seeing in Canada, the platforms are not taking this lie down.

We’re in a period of major change and uncertainty. Publishers will need to redouble their efforts to build direct and deep connections with their audiences. First-party data, newsletters, apps and other tools and techniques of audience development will become more important as ways to drive loyalty and habit. Right, my out of office is on. I’ll see you the last week of July!

Apple is about to make it much harder to track user behaviour

Apple has found that privacy is a good selling point as consumers seek some protections from being targeted and tracked by advertisers. As Josh Benton at Harvard’s Nieman Lab points out, this means that for the third time in recent years, Apple is rolling out a feature that will reduce advertisers, marketers and publishers’ ability to track user behaviour. Link Tracking Protection is set to be rolled out in iOS 17, iPadOS17 and macOS Sonoma. It will be on by default in Apple Mail and Messages as well as Safari’s private browsing. It will also be an option in Safari’s default browsing. It will target the tracking parameters that are part of UTM codes, those long strings appended to URLs that allow tracking by source and campaigns. It’s not all doom and gloom. You will still be able to track users by campaign and medium. What this move really targets is personally identifiable tracking codes that link activity to an individual user. Apple actually seems to be targeting IDs from other platforms such as Google, Microsoft, Facebook, Hubspot and MailChimp. Read on and make sure to click the links for additional detail.

Jeff Jarvis is back with another book tying looking at the changes brought about by digital media. I have to agree with Jeff when he says, “This is the last gasp of old media, traffic for traffic’s sake, scale for scale’s sake. All that came out of the advertising business model and I think that changes now.” Those publishers that are still chasing scale are mostly failing. He is talking about how publishers need to rethink value that they are providing foraudiences. I think the message is especially important as publishers consider using AI to generate more commodity content more cheaply.

Google is facing a lot of pushback from publishers and regulators around the world so it is interesting to see Richard Gingras at WAN-IFRA’s recent Global Congress. I will agree that those of us who have been around digital media for a long time have seen ‘quieter times’. But we’re in a period in which Google is at conflict with publishers unlike at any time in its history.

This year’s Reuters Institute Digital News Report highlighted the rising percentages of people actively avoiding news. It is something that they have been covering in greater detail as the practice increases. This year, they delved into the reasons why people avoided news and found that their reasons for avoiding news were varied and that even the most ardent news avoiders still engaged with the news at times, usually around big stories. Others sought out more positive news, not necessarily just feel good stories but solutions journalism as well. Now publishers are actively trying to engage these groups with non-news verticals - think of the New York Times cooking or ‘things to do’ coverage as we used to call it when I was a regional executive editor with Gannett.

As a former Gannett editor, this interested me. One thing that really stood out for me is the EBITDA multiple that Gannett had in 2013. I joined them in 2014, and wow, Gannett was still raking in the cash - an EBITDA multiple of 22.3! The piece puts this in context that Politico and Dennis Publishing both sold for EBITDA of 15x. What is cleat that the New York Times decision to focus on digital subscriptions years before Gannett have delivered. But digital subs for local journalism have proven challenging for big chains like Gannett. We can debate why that is, but many folks would say that the product that they deliver doesn’t justify the price of a subscription - especialliy as they have cut their local news gathering capacity.

And I add this one fast on the heals of the previous story because the New York Times is an outlier for so many reasons so it is important to not focus solely on it when looking for a path to the future. As the Reuters Institute report has pointed out, in digital news, every country now has a winner takes most market, in which a few national titles win the vast majoity of the digital news market.

I type this as my phone flashes every few minutes with a new follower, well, someone who follows me on Twitter now following me on Threads. To be honest, this is the biggest threat to Twitter of all of the services that have been released since Musk turned the platform into a soap opera (that sadly had real life consequences for many people I knew).

Twitter’s new CEO proves that she is a team player or at least a good spokesperson for Musk on why he makes the decisions that he does. I can understand this from the standpoint of not wanting Twitter to be scraped by LLMs without some kind of compensation. This is the second best tweet from the new CEO. The one that takes the biscuit talks about how Twitter’s imitators (see above item) can’t duplicate its community. Um, well, if they have the social graph of Facebook, it just might be possible.

This is a bit if history that I know that digital journalists of a certain age will appreciate. I use Feedly to provide me with the links that I use for this newsletter, but I still mourn the loss of Google Reader, the search giant’s RSS reader. I am still not ready to forgive Google for killing this product, but at least I have some context. When you operate at Google scale, products that don’t reach that scale don’t have a chance.

And I am sure that we’ll be seeing a lot of stories like this. AI will kill a lot of commodity content jobs from journalism to marketing copy writers. The school of cost efficiency finds AI just far too tempting.