News agency blames AI rewrites as it bows out with 30 staff
And what publishers need to know about changes to subscription rules contained in the Digital Markets Act
Welcome to your daily newsletter from Press Gazette on Wednesday 3 April.
Independent news agencies appear to be the latest pillar of the news ecosystem to be crumbling in the face of technological change.
These outfits have long warned that stagnant fees paid by news publishers are insufficient to cover their costs. Now a stalwart of the scene, Mike Leidig, has ceased publication at his four international agencies with 30 staff put on gardening leave.
Leidig survived (just) being branded a purveyor of fake news by Buzzfeed in 2015. But now he says technological changes have landed a mortal blow to his business.
The stories his agencies source from around the world are being lifted by in-house reporters (sometimes with the help of AI writing tools), he says.
Agencies often add value by fact-checking and sourcing original photos and quotes on stories which have been surfaced by local media. It seems that these additions may be becoming unnecessary luxuries in a world where many online tabloid stories are lifted without question from tech platforms like Tiktok and Reddit.
Today we also bring you a useful update on big changes to online subscriptions which are coming down the track when the Digital Markets Bill becomes law. We have analysed to latest amendments to the legislation to summarise what news publishers need to know.
New from Press Gazette
How publishers will need to change subscription policies in the Digital Markets Bill
Impacts of Digital Markets Bill for publishers will go beyond the much hoped-for payments from platforms.
News agency employing 30 calls time due to falling publisher budgets
Michael Leidig blames fall in commissioning budgets and newsroom AI for difficulties.
News in brief
A new US news outlet has launched - Hunterbrook Media - which is funded by a $100m hedge fund. Investors in the fund take positions ahead of the publication of stories. The newsroom is said to have a $5m annual budget. (Hunterbrook Media)
Charles Reiss, Evening Standard political editor from 1985 to 2004, has died aged 82. His last editor, Veronica Wadley, said: "He set the agenda for the day for his rivals to follow." (Evening Standard)
Yahoo is buying Artifact, the AI-powered news app created by Instagram's co-founders. Artifact will end as an app but its AI tech will be used for better personalisation and recommendations within Yahoo News (and, later, other Yahoo products). (The Verge)
The New York Times will offer the option to listen to automated voice versions of most of its articles. (Axios)
The Greeting Card Association says its proposal for Royal Mail to cut a midweek delivery day rather than Saturdays, if it must reduce letter services, would also "offer some mitigation" on the impact to magazine deliveries after concerns from publishers. (The Guardian)
The Australian Associated Press has signed a deal with Google to increase its capacity to provide fact-checks including analysing global misinformation trends and producing video explainers for the first time. (AAP)
The Telegraph has added its puzzles to its app for the first time. Jo Coughlin, general manager - new products, said: "This investment enhances the experience for subscribers who can enjoy games such as Plusword and Panagram in an easily accessible format.” (Telegraph Media Group)
Newsguard research has identified nearly 1,200 partisan online news outlets in the US masquerading as independent journalism, which have ties to lobbying groups and special interests. (Financial Times)
Jon Williams, former managing director of RTE News and Current Affairs, has been named director of the Rory Peck Trust which works to support freelance journalists worldwide. He said its "vital work is needed now, more than ever". (Rory Peck Trust)
Fortune has signed a deal with US-based video platform STN, incorporating its video player technology on the business website meaning a new revenue stream. (PR Newswire)
Previously on Press Gazette
Top 50 UK news websites: Most brands report audience dip in February
The Independent takes over Buzzfeed UK brands including Huffpost
Video brand TLDR finds way to make money providing news for the young
Reach plans to move 300 journalists into central traffic-driving content hub
What news publishers should do now to avoid extinction in 2025
Mail publisher launches news social-first video advertising product
Google and Facebook blocks hit revenue for The Tab publisher Digitalbox
‘Profitability is versatility’: CEO says video-led future bright for The Independent
Latest podcast
Podcast 68: How to make news pay on Youtube with TLDR News
Founder of video news network TLDR News Jack Kelly explains how he funds an 11-strong editorial team providing serious news for younger viewers on Youtube.
The profitable publisher is funded mainly through the Youtube ad revenue split and direct-sold sponsorship – but also made a successful foray last year into print publishing.
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Entries are now OPEN for the Future of Media Awards 2024 (which celebrate the best journalism-based digital products). Check out the full list of categories here. Note: These awards are free to enter.