Publishers face growing dilemma as Internet heavyweights target news publishing

Boston, MA - August 25, 2015 – In quick succession during Q2 2015, Facebook launched Instant Articles, Apple unveiled Apple News and Google introduced News Lab, all aimed at changing how news is created and consumed.

The Strategy Analytics Wireless Media Strategies (WMS) report, “Facebook, Apple and Google vs. News Publishers: Enemy at the Gates or Blessings in Disguise?” analyses the strengths and weaknesses of each initiative, and evaluates the propositions for different kinds of news outlets, including established, independent and amateur channels.

Click here for the report:

While Instant Articles and Apple News are designed to deliver a more pleasant reading experience on mobile devices, Google News Lab is going further to bring changes to the beginning of the news publishing life cycle, including how news is created.

“There are two philosophies in competition,” says Wei Shi, Analyst of Wireless Media Strategies at Strategy Analytics. “On one side are Facebook and Apple, which are focused on optimizing news delivery, including targeting the stories to be more relevant to each reader, and making the experience more pleasant for readers. On the other side is Google, which is providing tools and programs to publishers and journalists to democratize news creation. Google’s distribution network is also helping content providers to reach the broadest possible readership. The leading publishers may be concerned that their brands are diluted through the new channels, or irritated by Apple’s terms, but they surely have more to worry about what Google is offering.”

There are also opportunities, as all three initiatives provide valuable distribution channels in addition to the publishers’ own sites and apps, says Nitesh Patel, Director of Wireless Media Strategies at Strategy Analytics notes. “More eyeballs on smartphones mean the new news reading platforms offered by these companies are more attractive to advertisers which in turn will generate greater advertising revenues for the publishers. However, as news consumption on smartphones continues to grow it is critical that publishers adapt to the changes in the way they operate independently via their own branded properties versus how they cooperate and compete with the Internet heavyweights.”

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