Nandy promises to level online playing field | Endorsement lifts Guardian US reader revenue
While the non-endorsement at The Washington Post poses a problem for its own subs strategy
Welcome to your daily newsletter from Press Gazette on Wednesday, 30 October, 2024, brought to you today in association with Papermule - the UK's leading Publisher Digital Asset Management (DAM) provider.
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UK Culture Secretary Lisa Nandy love-bombed the local news industry last night at a Parliamentary reception hosted by the News Media Association.
And significantly, she gave the clearest indication yet that the new Labour government may use the power it has under the Digital Markets, Competition and Consumers Act to help local news publishers in their unequal battle with big tech.
Since 2008, the local news industry has lost tens of billions in ad revenue to Google and Facebook as small and medium-sized businesses flocked to cheaper marketing solutions on these ubiquitous platforms.
But not content to just take our industry's ad revenue (resulting in the loss of thousands of newsroom jobs) the tech giants are now behaving like playground bullies.
Google steals publisher content without permission via AI summaries, removing the need for readers to click through to sources. And you can't block Google from doing this without cutting off search traffic (effectively removing your site from the open web).
Facebook has deliberately downgraded news on its platform so that publishers now struggle to share content on the main medium through which many of their readers view the world.
Through the DMCC, the UK government can fine Meta and Alphabet up to 10% of annual turnover if they abuse their dominant market positions.
Nandy said her government recognised “the importance of good, peer-reviewed journalism as the best source of news and information over unchecked, artificially-generated stories”.
The challenge for local news publishers is to make sure they continue focusing on "good, peer-reviewed journalism" rather than being tempted by the short-term gains from cheap SEO-driven churnalism.
Today we also have the latest on US media election endorsements, which have gone from being of interest to a few political geeks to becoming a major battlefield in the fight for reader revenue. We report on how The Washington Post's handling of its non-endorsement appears to have blown a major hole in its online subscriptions strategy.
And we look at how Guardian US editor Betsy Reed capitalised on the indecision of her rivals with a five-paragraph email which reaped nearly $2m of new reader contributions in a matter of days.
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Culture Secretary Lisa Nandy, leaving 10 Downing Street after taking part in Prime Minister Sir Keir Starmer's first Cabinet meeting on Saturday 6 July 2024. Picture: Tejas Sandhu/PA Wire
Culture Secretary Nandy promises ‘level playing field for local media online’
“While national media understandably focused on the violent thugs who caused havoc in our towns, local and regional media were often first on the scene busting myths and telling the story of the community response.”
Guardian endorsement of Harris reaps it near $2m boost after editor’s email
A five-paragraph note sent out from Guardian US editor Betsy Reed on Friday may be one of the most successful subscription marketing messages in the history of online news.
Washington Post’s non-endorsement could cost title $20m+ in lost online subs
A Post report this week said subscriptions had been “ticking up ever so slightly” prior to the endorsement announcement.
News in brief
Reuters has signed a deal with Meta that will see the agency provide real-time answers in the Meta AI chatbot integrated into Facebook, Instagram, Whatsapp and Messenger. Axios describes it as "the first news deal Meta has brokered in the AI era". (Axios)
United Against Online Abuse, an initiative of the Fédération Internationale de l'Automobile, is surveying sport journalists about online abuse they face. The survey closes on Friday.
National World has signed a partnership with the Reach-launched, AI-based contextual ad/brand safety solution business Mantis, letting them "significantly expand the volume of brand-suitable inventory for advertisers".
Former GB News presenter Mark Steyn has been ordered to pay £50,000 in legal costs after his legal challenge against Ofcom was dismissed in July. Final costs are yet to be determined. (The Guardian)
Advertising revenue at Google parent company Alphabet rose 10.4% year-on-year in the third quarter, to $65.85bn. (Alphabet)
This week on Press Gazette:
British Journalism Awards 2024: Full list of this year’s finalists
Spiked Washington Post election leader leaves CEO Will Lewis in a deep hole
NUJ voices Local Democracy Reporter concern over pay and working outside their brief
Mill Media follows launch of Glasgow title The Bell with ‘The Londoner’
Secrecy around UK gun police threatens open justice say editors and reporters
Keir Starmer: AI companies should pay publishers for content
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