Apple is expected to launch an ambitious new entertainment and paid digital news service on Monday, as iPhone maker pushes back against streaming video leader Netflix.
Mark Thompson, chief executive of the largest U.S. (19659003) "We tend to be pretty leery about the idea of almost habituating people to find our journalism somewhere else, "he told Reuters in an interview on Thursday. "
Thompson, who took over as the New York Times CEO in 2012, has overseen a massive expansion in its online readership, warned publishers that they may suffer the same fate as television and film makers in the face of Netflix's Hollywood Insurgence.
"If I was an American Broadcasting Network, I would have thought twice about giving my entire library to Netflix, "Thompson said in response to questions about any talks with Apple to participate in iPhone news maker's new news service
Thompson declined to comment on any conversations with Apple. But he used the story of how Netflix made huge inroads into Hollywood to explain why the Times has avoided striking dealings with digital platforms in which it has little control over relations with customers or its content
"Even if Netflix offered you quite a lot of money … Does Netflix really make sense to build a gigantic base of subscribers to the point where they could actually spend $ 9 billion a year making their own content and will pay me less and less for my library? he asked.
In 2007 the answer for Hollywood was yes. In exchange for billions of dollars, studios helped Netflix launch a fledgling streaming video service by licensing their libraries of shows and movies, but that decision may have sown the seeds of their own demise
Apple is the latest company to offer a direct-to-consumer streaming video along with a news subscription service by leveraging the power of its more than 1 billion devices
Through its subscription news service, Apple will charge about $ 10 monthly for access to a variety of magazine and newspaper content, according to media reports. Apple is expected to take 50 percent of the revenue. The Wall Street Journal has agreed to join Apple's service, according to a recent New York Times report.
A monthly digital subscription to the New York Times costs $ 15, and Thompson said he has no plans to give that up to participate on other platforms like Apple's.
Last year, the Times generated over 700 million US dollars in digital revenues, close to the company's $ 800 million annual sales target by 2020. Digital advertising revenue surpassed first-time revenue in the fourth quarter of 2018. The The Times has plowed the investment back into its newsroom, which at 1,550 journalists is now at its largest ever.
Despite the company's insistence on keeping readers on its own products and platforms, Thompson said it has experimented on other services, highlighting content the Times (19659003) These new audiences, he said, will play a big role in helping the Times reach its new target of 10 million subsc ribers by 2025.