Apple aims to expand News app with enhanced features and broader reach

Apple is set to enhance its News app, signalling its growing influence in the publishing industry. According to sources, the technology giant is exploring the potential to introduce the app in new countries while also expanding locally focused news coverage in the United Kingdom and puzzles more widely. This reflects Apple’s strategy to further develop features that have been successful in markets like the US Canada, and Australia, where the app enjoys about 125 million monthly users.

Apple News is regarded as a significant avenue for driving revenues for various publishers. David Higgerson, chief digital publisher at Reach, the UK’s largest regional newspaper group, told the FT: “From a brand awareness point of view, it’s really important. We need to be there. It’s the front door to everyone’s iPhone.”

By positioning itself as a central news source, Apple aims to solidify its role within the media ecosystem amid rising challenges faced by traditional publishers.

Launched nearly a decade ago, Apple News has not produced original journalism on its own but has considerable sway in shaping what its users read daily. The app ranks as the leading news application in most of its operational countries and drives considerable traffic to its partner publishers. Reach’s flagship publication, the Mirror, gets about 4.5 million monthly users from the platform — nearly a quarter of its total readership.

The rise of Apple News coincides with a challenging period for many media organisations that have experienced declining digital revenues and shifting readership patterns. Factors contributing to this predicament include Meta’s recent strategy to reduce news content and alterations to Google’s algorithms, which have impacted traffic from search engines. Additionally, concerns have emerged regarding the utilisation of artificial intelligence for summarising news articles, potentially limiting the traffic directed to traditional news sites.

Sean Cornwell, CEO of Immediate Media which runs various consumer magazines, highlighted the platform’s importance. “Apple News has sort of come out of nowhere, and very quickly has become quite a material revenue line,” he said. Cornwell noted the substantial audience for their BBC History magazine, which has exceeded seven figures in regular readership, attributing much of this success to the app.

Apple News offers a combination of curated and personalised news stories drawn from various magazines and newspapers, along with games, podcasts and newsletters. The service’s subscription tier, Apple News+, has expanded from 300 publishers at its inception five years ago to approximately 450 globally. The subscription is priced at $12.99 per month in the US and the UK.

While many in the industry welcome the opportunity to reach broader audiences, debate persists over the implications of Apple News on traditional revenue models. On the free version of the app, revenue is generated primarily through advertising. Publishers can retain 100% of advertising revenue they sell, or 70% of earnings from ads sold by Apple. However, concerns have been raised regarding the effectiveness of monetising articles, particularly due to stringent data privacy regulations that limit audience targeting capabilities.

Higgerson pointed out that “it’s very hard to do any targeting for data-led advertising revenue as Apple does not give access.” The situation presents challenges for media entities attempting to establish a profitable advertising strategy while navigating Apple’s stringent terms.

Concerns remain regarding the possibility of Apple undermining potential direct subscriptions from readers. However, some media executives perceive Apple News as an opportunity to connect with a younger audience demographic and introduce their brands more broadly. Company research demonstrates that Apple News is effective in attracting a different audience profile compared to traditional publishers.

The editorial team of Apple News operates from locations including London, New York, Sydney and California, led by editor-in-chief Lauren Kern, who was previously at New York Magazine. This team employs a blend of editorial curation and automated processes to determine content promotions. Sources indicate that, while efforts are made to maintain impartiality, certain prominent publications like the New York Times and the Guardian frequently appear in top spots on the app.

Finally, decisions on which stories to promote tend to focus on high-quality journalism standards, favouring exclusives or well-sourced articles. A spokesperson from the team said, “We’re looking for the most straightforward news that’s being told with as little kind of bias or point of view as possible,” while also prioritising diverse voices in content selection, reflecting a commitment to variety in topics and viewpoints represented across the platform.

Source: Noah Wire Services