Why is the global news app industry booming?
Let’s take a deep dive for the answers
The global news app industry has experienced significant growth in recent years, fueled by the increasing demand for real-time information, the proliferation of smartphones, and the shift towards digital content consumption.
As traditional media outlets face challenges, news apps have emerged as a crucial platform for delivering news to a tech-savvy audience.
Market size and growth
As of 2023, the global news app market was valued at $6.8 billion. It is projected to grow at a CAGR of 8.5% from 2024 to 2030, reaching an estimated value of $12.2 billion by the end of the forecast period. This growth is driven by rising internet penetration, the growing popularity of mobile devices, and the increasing preference for personalised news content.
Key market segments
The news app industry can be segmented based on platform, revenue model, and geography:
- By platform:
- iOS: Accounts for the largest market share, with a value of around $3.2 billion in 2023. iOS users tend to have higher spending power, making this platform a key revenue generator for news apps.
- Android: Valued at $2.9 billion in 2023, the Android platform is expected to grow at a CAGR of 9.1% from 2024 to 2030, driven by its extensive user base, especially in emerging markets.
- Others (Windows, web-based, etc.): Although they comprise a smaller portion of the market, these platforms collectively generated $0.7 billion in revenue in 2023.
- By revenue model:
- Advertising: The dominant revenue model, accounting for over 65% of the market share in 2023. As brands increasingly shift their ad budgets to digital platforms, news apps capture a larger share of this spend.
- Subscription: Valued at $2.1 billion in 2023, subscription-based models are growing as more consumers are willing to pay for premium, ad-free content. This segment is expected to grow at a CAGR of 10.2% from 2024 to 2030.
- In-app purchases and others: This segment, including microtransactions for premium content or features, contributed 10% of the market revenue in 2023.
- By geography:
- North America: The most prominent regional market, valued at $2.7 billion in 2023, is expected to maintain its lead due to high smartphone penetration and a well-established digital media landscape.
- Europe: With a market size of $1.9 billion, Europe is the second-largest market, driven by strong demand for free and subscription-based news apps in countries like the UK, Germany, and France.
- Asia-Pacific: This region is witnessing the fastest growth, with a CAGR of 11.3%, as increasing smartphone adoption and internet penetration drive demand in countries like India, China, and Japan.
- Rest of the world: This segment, which includes Latin America, the Middle East, and Africa, is valued at $1.2 billion and is expected to see moderate growth.
Trends shaping the market
- Personalisation and AI-driven content: Modern news apps are increasingly leveraging artificial intelligence (AI) to offer personalised content to users. Algorithms analyse user behaviour and preferences to curate news feeds tailored to individual tastes, enhancing user engagement and retention.
- Video content: Video news consumption is rising, with more users preferring video summaries or live broadcasts over traditional text-based articles. News apps are integrating more video content to cater to this trend, with video ad spending in the segment expected to grow by 12% annually.
- Shift to subscription models: As advertising revenue faces pressure from ad blockers and privacy regulations, more news apps are adopting subscription-based models. This shift is particularly evident in developed markets, where consumers are more willing to pay for quality journalism.
- Regional and local news: While global news remains essential, there is a growing demand for regional and local news content. News apps increasingly offer localised content to cater to users’ specific interests in different regions, driving higher engagement.
- Social media: News apps increasingly integrate social media features, allowing users to share articles, comment, and participate in discussions directly within the app. This integration boosts user engagement and helps distribute viral content.
Competitive landscape
The global news app market is highly competitive, with several key players dominating the industry:
- Google News: One of the most widely used news apps globally, Google News aggregates content from multiple sources and provides personalised news feeds. In 2023, Google News reported a monthly user base of over 1.2 billion active users.
- Apple News: With a strong presence on the iOS platform, Apple News has a significant market share, particularly in North America and Europe. The app’s subscription service, Apple News+, contributed over $650 million in revenue in 2023.
- Flipboard: Known for its magazine-style layout, Flipboard has a user base of over 145 million. The app has been focusing on personalised content and regional news, helping it maintain a strong presence in the market.
- BBC News: A major player in the UK and globally, the BBC News app has over 45 million downloads. The app is famous for its reliable and unbiased reporting.
- Microsoft News: The app, which leverages its integration with Windows and other Microsoft services, has a solid user base and is particularly popular in North America and Europe.
Challenges and opportunities
While the news app industry presents numerous growth opportunities, it also faces several challenges:
- Content moderation and fake news: The rise of misinformation and fake news has pressured news apps to enhance content moderation. Ensuring the credibility of content is crucial to maintaining user trust.
- Ad revenue challenges: The increasing use of ad-blockers and changes in privacy regulations, such as GDPR, impact ad revenue. News apps need to diversify their revenue streams to mitigate these challenges.
- Opportunities in emerging markets: With rising internet penetration and smartphone adoption, emerging markets offer significant growth potential. Localised content and affordable subscription models can help tap into these markets.
Conclusion
The global news app industry is poised for continued growth, driven by the increasing demand for digital news consumption, advancements in AI-driven personalisation, and the shift towards video content.
As the industry evolves, news apps focusing on user experience, content credibility, and revenue diversification will be well-positioned to capitalise on the growing market opportunities.
Featured image: News apps have emerged as a crucial platform for delivering news to a tech-savvy audience. Credit: Ketut Subiyanto
