Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Apple    AAPL

APPLE

(AAPL)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

The media has a big problem, Reuters Institute says - Who will pay for the news?

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/12/2019 | 06:03am EDT
Front pages of newspapers and magazines are displayed on an iPhone during the grand opening and media preview of the new Apple Carnegie Library store in Washington

LONDON (Reuters) - News organisations are being challenged by technology giants and unsettled by a broader lack of trust but they have a much deeper problem: most people don't want to pay for online news, the Reuters Institute found.

Swiftly accelerating mobile internet and smartphones have revolutionised the delivery of news and destroyed the business models of many news organisations over the past 20 years, leading to falling revenues, layoffs and takeovers.

The mass migration of advertising to U.S. technology giants such as Facebook, Google and Amazon has hammered revenues while more than half the world's population now has access to news via an internet connection.

But will people actually pay for news?

The Reuters Institute for the Study of Journalism said in its annual Digital News Report that most people would not pay for online news and that there had been only a small increase in the proportion of people willing to do so in the last six years.

Even among those who do pay, there is "subscription fatigue" - many are tired of being asked to pay for so many different subscriptions. Many will opt for films or music rather than pay for news. So some media companies will fail.

"Much of the population is perfectly happy with the news that they can access for free and even amongst those who are willing to pay, the majority are only willing to sign up for one subscription," Rasmus Kleis Nielsen, director of the Reuters Institute, said by telephone.

"A lot of the public is really alienated from a lot of the journalism that they see - they don't find it particularly trustworthy, they don't find it particularly relevant and they don't find it leaves them in a better place."

While many news organisations add paywalls and some see increases in digital subscriptions, there has been little change in the proportion of people paying for online news, apart from the "Trump bump" rise in the United States in 2016/2017.

In the United States, those paying for news online were likely to have a university degree and be wealthy: The New York Times, Wall Street Journal and Washington Post did well on digital.

Still, almost 40 percent of new digital subscriptions at the New York Times are for crosswords and cooking, the Reuters Institute said, citing an article by Vox.

In Britain, around a third of those surveyed said they avoided the news due to Brexit. Leave voters said they avoided the news as it made them sad and said they could not rely on the news being true. There has been no Brexit bounce.

"If news organisations want to cut through with a direct route to users in an environment dominated by platforms, if they want to convince people to pay for their journalism then they must convince people that the journalism they publish has value for them, for the public," Nielsen said.

NETFLIX, APPLE AND AMAZON

As they fight for revenue, news organisations are facing a growing threat from entertainment providers such as Netflix , Spotify, Apple Music and Amazon Prime.

"In some countries, subscription fatigue may also be setting in, with the majority preferring to spend their limited budget on entertainment (Netflix/Spotify) rather than news," said Nic Newman, a senior research associate at the Reuters Institute.

"Not surprisingly, news comes low down the list when compared with other services such as Netflix and Spotify – especially for the younger half of the population," he said.

When asked what media subscription they would pick if they had only one for the next year, just 7% of under 45-year-olds picked news. The report showed 37% would opt for online video and 15% for online music.

Aggregators are also waiting in the wings: Apple News+ offers a single priced subscription for some access to premium titles including TIME, The Atlantic, The New Yorker, Vogue, The Wall Street Journal and Los Angeles Times.

That could deny publishers a direct link with consumers, limiting the information they have to make targeted advertising more effective, and valuable.

"Despite the greater opportunities for paid content, it is likely that most commercial news provision will remain free at the point of use, dependent on low-margin advertising, a market where big tech platforms hold most of the cards," Newman said.

The Reuters Institute for the Study of Journalism is a research centre at the University of Oxford that tracks media trends. Thomson Reuters Foundation, the philanthropic arm of Thomson Reuters, funds the Reuters Institute.

(Editing by Stephen Addison)

By Guy Faulconbridge

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET 1.04% 1105.24 Delayed Quote.4.68%
AMAZON.COM 0.81% 1901.37 Delayed Quote.25.57%
APPLE 2.35% 198.45 Delayed Quote.22.92%
FACEBOOK -0.29% 188.47 Delayed Quote.44.18%
NEW YORK TIMES CO 0.93% 33.68 Delayed Quote.49.71%
NEWS CORP 5.31% 12.89 Delayed Quote.7.84%
THOMSON REUTERS CORP 0.52% 87.58 Delayed Quote.32.16%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on APPLE
05:00aAPPLE : Mulls Shifting 15%-30% of Output From China Amid Trade Dispute -Nikkei
DJ
04:13aActivists urge Google to break up before regulators force it to
RE
02:49aCBS Plans Viacom Bid, Renewing Merger Push -- WSJ
DJ
01:16aASIA MARKETS: Asian Markets Suge On Renewed Hopes Of Trade Deal
DJ
06/18Most SoftBank Vision Fund investors want to join second fund - CEO Son
RE
06/18THE BEST IPAD 2019 : the top-ranked Apple tablet you can buy today
AQ
06/18CBS Is Planning Offer for Sister Company Viacom -- 2nd Update
DJ
06/18NEWS HIGHLIGHTS : Top Company News of the Day
DJ
06/18NEWS HIGHLIGHTS : Top Company News of the Day
DJ
06/18APPLE : Microsoft set to capture Gen Z workforce by focusing on mobility
AQ
More news
Financials ($)
Sales 2019 257 B
EBIT 2019 62 546 M
Net income 2019 53 346 M
Finance 2019 97 442 M
Yield 2019 1,57%
P/E ratio 2019 16,64
P/E ratio 2020 15,00
EV / Sales 2019 3,02x
EV / Sales 2020 2,94x
Capitalization 875 B
Chart APPLE
Duration : Period :
Apple Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends APPLE
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 41
Average target price 211 $
Spread / Average Target 11%
EPS Revisions
Managers
NameTitle
Timothy Donald Cook Chief Executive Officer & Director
Arthur D. Levinson Chairman
Jeffrey E. Williams Chief Operating Officer
Luca Maestri Chief Financial Officer & Senior Vice President
Kevin M. Lynch Vice President-Technology
Sector and Competitors
1st jan.Capitalization (M$)
APPLE22.92%797 366
XIAOMI CORP--.--%31 991
WINGTECH TECHNOLOGY CO LTD60.39%3 243
MEITU INC--.--%1 449
DIGIA OYJ7.02%91
DORO AB-0.88%90