Last week, in a surprising move, The Washington Post and Los Angeles Times announced they would not endorse any candidate in the upcoming presidential election. This decision, a significant departure from the tradition of newspaper endorsements—particularly for two of the largest and most trusted papers in the country—sparked widespread backlash.
In response, thousands of readers reportedly canceled their subscriptions, intensifying a business and PR crisis that shows no signs of slowing down.
Why This Matters:
Is there an adtech angle here? Potentially. Losing subscribers means a greater reliance on ad revenue. According to Pew, ad revenue made up half of newspaper revenue in 2022, so as subscribers leave, ad dollars become even more essential.
This shift is counter to the goals of both The Washington Post and the L.A. Times. The L.A. Times had aimed for 1 million subscribers by 2022, a target it’s fallen short of. Similarly, WaPo had been working on ways to increase its subscriber base, reportedly presenting employees over the summer with new subscription offerings like “Post Pro” and “Post Plus” aimed at working professionals and dedicated readers.
Subscriber losses also impact these papers’ data capabilities. Subscribers provide valuable first-party data that publishers can leverage to create more relevant ads, leading to better engagement and ad impressions. With fewer subscribers, the number of logged-in users decreases, directly undermining each publication’s ability to collect data and deliver more targeted advertising.
Experts React:
Our Take:
It will be interesting to see what the business model for news publishers looks like in 2025.
While focusing on subscribers will likely remain a priority, building a loyal audience is increasingly challenging in a subscription-saturated market. As brand safety concerns evolve, with companies like Stagwell and DoubleVerify now more forcefully advocating for “news as safe” environments, ad dollars may eventually flow back to news publishers.
Another potential revenue stream lies in Generative AI and Content as a Data Service. With demand for reliable data rising among Gen AI and LLM companies, trusted news sources may find lucrative opportunities by licensing their content. We anticipate more legal action to drive up content value—such as recent moves by Dow Jones against Perplexity—and expect this area to play a growing role in news publishers’ revenue strategies moving forward.
