How Axios is making local news pay | Ex-Observer staff expand The Nerve
And publishers have joined Amazon in fighting a crucial legal action against Perplexity over theft of content for AI training
Good morning from the team at Press Gazette on Thursday, 5 May.
Press Gazette’s awards for the best digital journalism products (newsletters, podcasts, websites, etc.) are now open for entries. Find out more here.
✅ Some encouraging news from the US where Axios is ramping up its expansion into local news.
With around 100 journalists it plans to have 43 local editions by the end of the year.
The model is a simple one. Around two journalists per edition who are focused around a daily newsletter with about five original stories plus links to relevant content elsewhere. Money comes mainly from advertising, but also from donations (which keep the content free for everyone). And AI is used heavily to help source content and streamline production, but never for writing.
🚀 UK-based investigative journalism outlet The Nerve is also funded by reader donations which help keep its content free. Supporters get involved because they back its mission of journalism which is “independent, transparent, investigative, inclusive and fearless”.
Its five founders are all former Observer staff who left in the wake of its sale to Tortoise Media. Now six months on The Nerve is expanding already with four additional writers joining the team.
Paid memberships are gaining traction around the world as a way of supporting journalism.
My theory is they work because they appeal to a different part of the human brain, wherever altruism sits. If pitched right, this appears to land a lot more easily than demands for subscriptions which get readers on the defensive.
It is the latest battle in a war which will determine whether journalism has a future in the AI-powered age.
As US trade body Digital Content Next puts it: “An AI agent that commercialises publisher content for AI products without authorisation effectively commandeers a perpetual license of unlimited scope without paying a cent to the publisher who created the content, and thereby deprives the publisher of an important, regular source of revenue. This is simply not sustainable.”
If copyright is over in the AI age, then we are all doomed.
🤏 News In Brief
Press Gazette’s tracker of AI journalism mishaps has been updated with several non-English language examples and Ars Technica fabricated quotes case.
This week’s news diary from Foresight News includes STV journalists going on strike, David Attenborough’s 100th birthday and the Bafta Television Awards. (Press Gazette)
An Associated Press reporter has shared that 40 reporters, photographers and videographers have taken buyouts and staff have been told layoffs will follow. (Press Gazette)
Prospect has appointed two co-managing directors to succeed CEO Mark Beard. Wendy Miller, currently head of sponsorship and advertising, and Tom Bath, head of marketing, will lead the brand. (Press Gazette)
BBC News is aiming to cut costs by 15%, mainly from job cuts - which would be steeper than the overall BBC target of cutting up to 2,000 jobs or 10% of staff. (The Guardian)
This year’s Pulitzer Prize winners have been announced with The Washington Post winning the Public Service award for “piercing the veil of secrecy around the Trump administration’s chaotic overhaul of federal agencies”. (Pulitzer Prize)
People Inc Q1 2026 digital revenue increased 8% to $253m including 1% advertising growth, 15% performance marketing growth and 26% licensing and other growth. Daily Beast revenue was up 36% and profit increased. (IAC)
Financial Times journalists are pushing back against plans to increase office days from three to four per week. Union members have voted to invoke a dispute process, arguing a lack of “compelling case” for the change. (The Guardian)
Google‘s VP of global news partnerships says people are twice as likely to click through to a publisher once they’ve marked them as a ‘preferred source’. (Linkedin)
Reddit‘s CEO says the platform has seen a 30% year on year increase in the number of people using its search function each week. (Techcrunch)
Reach‘s internal Celebrating Brilliant Journalism Award winners include Brand of the Year jointly going to Nottingham Post and Daily Star, Headline of the Year to the Star’s Never Ending Tory, The Bookish Drop newsletter for Emerging Brand, and Audio and Video Award to Daily Expresso.
Newsquest has appointed Ben Hardy as editor of The Press and Gazette & Herald in York. Hardy is currently audience and content editor of the Oxford Mail and will relocate to York in June.
👀In case you missed it:
1) Google, Meta and Amazon took two thirds of £46bn UK 2025 adspend
Press Gazette analysis based on new AA/WARC data reveals extent three US tech giants dominate UK media.
2) Five-star employee reviews for Pink News deleted after AI allegation
Pink News denies any involvement in the now-removed five-star reviews.
3) Martin Lewis says Meta scam ads stealing his name are ‘worse than ever’
Lewis spoke about issue as it was announced he will receive BAFTA Special Award.
4) News booms on Youtube: BBC goes top as leading publishers grow 16%
Ranking of all English-language publishers on Youtube with more than one million subscribers.
5) UK top 50 news websites: Oxford Mail grows fastest as most sites lose reach
News Bargaining Incentive to levy Google, Meta and Tiktok unless they sign commercial news deals.
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