A News Subscription Product to Be Launched By Facebook
According to reports, Facebook will be soon rolling out a news subscription product. This came up after the formation of News Media Alliance by almost 2000 publishers in the United States to receive an anti-trust exemptionfrom the Congressto discuss over advertising income with digital platforms. The news partnerships head of the social platform giant, Campbell Brown, said Facebook will be introducing a subscription-based news product and itsprimary tests initiating in October.
At the Digital Publishing Innovation Summit held in New York City, Brown said, “What we heard in our primaryconferences from many digital publishers and newspapers is that we need a subscription product—we need to be able to perceive a paywall on the social platform. And that is something we are exploiting now. We are introducing a subscription product.”
The paywall notion is based on metered and premium plans and has been in the functioning for a while, as per Brown. He said, “The company isintending to create a paywall that would need readers to become the platform’s subscribers once they haveread 10 articles.”The media report statesthat the company options would be accommodating metered publications, including the Wall Street Journal, The Economist, and the New York Times, which make a definitecollection of articles free and the rest are put behind a paywall.
Apart from this, the publication will be given access to all subscriber data by Facebook to better comprehend their audience. The change is to enable individuals to subscribe—via the Instant Articles feature of Facebook—to publications and upkeep major publications with “freemium” models and metered paywalls.The News Media Alliance that comprises approximately 2000 local and national newspapers in the United States, including The Wall Street Journal, The Washington Post, and The New York Times, has started going to Capitol Hill to probe the probabilities for an exemption.
The Senior Vice-president of News Media Alliance, Paul Boyle, said, “We are seeking to break up Facebook and Google by stating they have a duopoly here, what we’re stating is there should be anapproach to enhance the business model.” As per Boyle, newspapers had believedthat sharing theirarticles on social media would get them a part of the digital ad market.”However, Facebook doesnot always let the reader select through to the website of the publisher, refuting the revenue for news website ad from that reader.”
Nonetheless, it is not clear how the payments will be managed and whether Facebook will be taking a cut of subscription deals.