On Monday Apple Inc will be launching a new paid entertainment and digital news service. Although the company is trying to capture market from the streaming video leader Netflix Inc, it will probably not include the New York Times Co.
Mark Thompson, Chief Executive of the New York Times has warned that trusting third-party distribution can be risky for publishers as they are at risk of losing all control over their services or products. Thompson also said that it is a bit leery of thinking that people will be able to find New York Times journalism in other places. He also raised concerns about journalism getting mixed up with everyone else’s journalism.
Thompson took over as CEO at New York Times in 2012 and has been in charge of expanding its online readership. He had also raised concerns about publishers suffering from the same fate as film and television makers when Netflix made its appearance on the scene.
In response to questions about the participation of New York Times in Apple’s new news service, Thompson said that he would be concerned about handing over his entire library to Netflix if he were an American broadcast network.
Thompson refused to comment about anything to do with Apple. He used the example of Netflix as to why it is in the best interest of the New York Times to avoid striking deals with third-party digital platforms over which the firm will have little control.
Apple is the latest entrant in the direct-to-consumer streaming video market. It is also planning on offering a news subscription service by using the power of its 1 billion devices. Apple plans to charge around $10 per month for access to a large database of newspaper and magazine content. According to reports, Apple will probably take up to 50 percent of the revenue. The Wall Street Journal will be joining Apple’s new service. The owner of the Journal was not available for comment.
New York Times offers a monthly subscription for $15 per month. Thompson has announced that the Times will not be giving up that to be a part of other platforms like Apple’s.
The previous year, the New York Times raised over $700 million as digital revenue. The company plans to raise around $800 million by 2020 in annual digital sales. For the first time, the digital ad revenue crossed print ad revenue in the fourth quarter of last year.