Since the Apple News announcement, the New York Times had been part of the content offered to consumers
However, during the pandemic, the newspaper managed to substantially increase the number of recurring customers
Part of the news outlet’s strategy has been to stop relying on ads and physical sales
Business alliances are central to many of the brand’s business initiatives. Not only do they allow companies to enter markets that they might not otherwise have access to. It also allows companies to multiply the attractiveness of their respective business portfolios. In this sense, it is essential to ensure that the relationship is satisfactory for all parties, so that it will last in the future. Apple must have known.
In . data, however, it just pissed off one of the most important allies it has in one of its subscription-based business units. This is the New York Times, which for several months was one of the most powerful media that Tim Cook’s company offered as part of its Apple News subscription. From this decision, it is expected that the contents of this newspaper will no longer be available from June 29.
According to the news agency, this decision is interesting now that the Times is in the process of reinforcing its digital subscription strategy as a major source of revenue. The publisher reiterated, as part of the announcement of the end of relations with Apple, that the media should not only be adequately remunerated for their content. He also noted that he seeks to have a closer relationship with his paid readers. Something you can’t do on News.
A fundamental loss for Apple
This conflict between Tim Cook’s company and the New York Times can be seen as a new chapter in the news media’s fight to gain independence from technology. For months now it has been pointed out that there is a toxic relationship between the two industries. This has generated agents like Bloomberg to respond with a certain aggressiveness. And in the case of platforms like Facebook and Google, some rough edges have already been tried.
But it could also be a troubling indication for Apple’s future in the subscription services market. It must be remembered that the company, since last year, bet heavily on this monetization model to compensate for the diminishing performance of its iPhone. On all these platforms, it has been necessary to cooperate with other agents, including streaming. At the same time, the case of the Times, and others, reveal that they do not know how to play in a group.
Thus, the departure of the New York Times from Apple News could be much more serious for Tim Cook and his team than just one less ally in a nascent subscription service. It could be an indication of a crucial company problem that runs counter to some of your business goals. And if so, it would require the company to seriously reconsider what its relationship with other agents in the industry is like. Something she might not be very willing to do.
Subscription services issues
It is worth noting that services like Apple News are becoming increasingly popular across the market. Tesla intends to offer its autopilot under the same subscription scheme, maximizing its profits. Sony is also looking at how to continue creating value in its business units through recurring payments. Even Coca-Cola, which specializes in consumer goods, has shown that it is a flexible ecosystem.
Unfortunately, as Apple’s case also shows, subscriptions are not a foolproof business model. According to Econsultancy, many consumers tend to feel tired or bored with these types of services if there are not enough incentives to keep hiring them. The Answer Company ensures that the cost can also be higher. And MConnect Media points out that curating content can be logistical hell.
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