Let’s kick off our Friday with a new Friday Five! This week’s top stories highlight major shifts across media, technology, and business—some seeing opportunity amidst the media industry’s crisis, Spotify celebrating its first full year of profitability, The New York Times evolving beyond news, Thomson Reuters scoring a legal win in the ongoing battle over AI and copyright, and the UK Trust Barometer revealing public concerns that institutions are deliberately misleading. Let’s get into it…
The Media Industry Is in Crisis. Axios CEO Jim VandeHei Sees a Massive Opportunity
In a recent interview, Axios CEO Jim VandeHei discussed the current challenges in the media industry and identified significant opportunities amidst the turmoil. He noted a shift in the media ecosystem, suggesting that it now prefers conservative views more than liberal ones. VandeHei emphasized the importance of adapting to these changes and highlighted Axios's approach to concise, efficient journalism as a model for success. He also mentioned the potential for growth and innovation within the industry, despite the ongoing unrest. Read more on Mediaite.
Spotify Reports First Full-Year Profit
Spotify reported its first full year of profitability in 2024, driven by record user growth, increased prices, and cost-cutting measures, including significant layoffs. The company exceeded revenue expectations and saw improved profit margins, reflecting its strategic shifts. Investors responded positively, with Spotify's stock jumping 13% after the announcement. Read more on The Wall Street Journal.
Third of New York Times subscribers do not pay for its news product
The New York Times is seeing a major shift in its digital subscriber base, with a growing number of people signing up for its non-news products like Games, Cooking, and The Athletic. This reflects the company’s strategy of bundling its offerings to attract and retain customers. While overall digital subscriptions are on the rise, stand-alone news subscriptions have declined. Read more on PressGazette.
Thomson Reuters scores early win in AI copyright battles in the US
Thomson Reuters has obtained an early legal victory in its 2020 lawsuit against Ross Intelligence, which was accused of using content from Thomson Reuters' Westlaw platform without permission. The court ruled that Ross Intelligence's actions did not qualify as "fair use" under U.S. copyright law, siding with Thomson Reuters. This case sets a significant precedent amid a growing number of similar lawsuits filed by authors, visual artists, and music labels against AI developers for unauthorized use of their works. Read more on The Associated Press.
A Breakdown of Trust
The latest UK Edelman Trust Barometer reveals growing public distrust in institutions, with many believing government officials, business leaders, and journalists deliberately mislead the public. The media is especially under scrutiny, as a majority believes news organizations prioritize ideology and audience engagement over truth. The findings highlight an urgent need for greater transparency and accountability to restore public confidence. Read more on InPublishing.