Facebook knew that an ad intended for a 13-year-old was likely to capture younger children who wanted to mimic their older siblings and friends, one person said. Managers told employees that Facebook did everything it could to stop underage users from joining Instagram, but that it could not be helped if they signed up anyway.
In September 2018, Kevin Systrom and Mike Krieger, Instagram’s founders, left Facebook after clashing with Mr. Zuckerberg. Mr. Mosseri, a longtime Facebook executive, was appointed to helm Instagram.
With the leadership changes, Facebook went all out to turn Instagram into a main attraction for young audiences, four former employees said. That coincided with the realization that Facebook itself, which was grappling with data privacy and other scandals, would never be a teen destination, the people said.
Instagram began concentrating on the “teen time spent” data point, three former employees said. The goal was to drive up the amount of time that teenagers were on the app with features including Instagram Live, a broadcasting tool, and Instagram TV, where people upload videos that run as long as an hour.
Instagram also increased its global marketing budget. In 2018, it allocated $67.2 million to marketing. In 2019, that increased to a planned $127.3 million, then to $186.3 million last year and $390 million this year, according to the internal documents. Most of the budgets were designated to wooing teens, the documents show. Mr. Mosseri approved the budgets, two employees said.
The money was slated for marketing categories like “establishing Instagram as the favorite place for teens to express themselves” and cultural programs for events like the Super Bowl, according to the documents.
Many of the resulting ads were digital, featuring some of the platform’s top influencers, such as Donté Colley, a Canadian dancer and creator. The marketing, when put into action, also targeted parents of teenagers and people up to the age of 34.
“The internet is answering a question that it’s been wrestling with for decades, which is: How is the internet going to pay for itself?” he said.
The fallout may hurt brands that relied on targeted ads to get people to buy their goods. It may also initially hurt tech giants like Facebook — but not for long. Instead, businesses that can no longer track people but still need to advertise are likely to spend more with the largest tech platforms, which still have the most data on consumers.
David Cohen, chief executive of the Interactive Advertising Bureau, a trade group, said the changes would continue to “drive money and attention to Google, Facebook, Twitter.”
The shifts are complicated by Google’s and Apple’s opposing views on how much ad tracking should be dialed back. Apple wants its customers, who pay a premium for its iPhones, to have the right to block tracking entirely. But Google executives have suggested that Apple has turned privacy into a privilege for those who can afford its products.
For many people, that means the internet may start looking different depending on the products they use. On Apple gadgets, ads may be only somewhat relevant to a person’s interests, compared with highly targeted promotions inside Google’s web. Website creators may eventually choose sides, so some sites that work well in Google’s browser might not even load in Apple’s browser, said Brendan Eich, a founder of Brave, the private web browser.
“It will be a tale of two internets,” he said.
Businesses that do not keep up with the changes risk getting run over. Increasingly, media publishers and even apps that show the weather are charging subscription fees, in the same way that Netflix levies a monthly fee for video streaming. Some e-commerce sites are considering raising product prices to keep their revenues up.
Consider Seven Sisters Scones, a mail-order pastry shop in Johns Creek, Ga., which relies on Facebook ads to promote its items. Nate Martin, who leads the bakery’s digital marketing, said that after Apple blocked some ad tracking, its digital marketing campaigns on Facebook became less effective. Because Facebook could no longer get as much data on which customers like baked goods, it was harder for the store to find interested buyers online.
The 1992 Olympics in Barcelona had the Dream Team. The 2008 Olympics in Beijing had the Michael Phelps medal sweep. The Tokyo Olympics has a pandemic.
That has been the greatest challenge for NBCUniversal, the company that paid more than $1 billion to run 7,000 hours of games coverage across two broadcast networks, six cable channels and a fledgling streaming platform, Peacock.
The ratings have been a disappointment, averaging 16.8 million viewers a night through Tuesday, a steep drop from the 29 million who tuned in through the same day of the Rio de Janeiro Olympics in 2016. NBCUniversal has offered to make up for the smaller than expected television audience by offering free ads to some companies that bought commercial time during the games, according to four people with knowledge of the matter, who spoke on the condition of anonymity to discuss negotiations.
opening ceremony set a downbeat tone. Instead of the usual pageant of athletes smiling and waving to the crowd, there was a procession of participants walking through a mostly empty Tokyo Olympic Stadium, all wearing masks to protect themselves against the spread of Covid-19 as a new variant raged. The live morning broadcast and prime-time replay drew the lowest ratings for an opening ceremony in 33 years, with just under 17 million viewers. The high came Sunday, July 25, when a little more than 20 million people tuned in.
24 years as NBC’s prime-time Olympics host before leaving the network in 2017. “You can’t create something out of thin air. Everybody knows that this is, we hope, a one-of-a-kind Olympics.”
“It’s like if somebody is running the 100 meters and they have a weight around their ankles,” Mr. Costas continued. “That is not a fair judge of their speed.”
A widespread change in viewing habits, from traditional TV to streaming platforms, has been a big factor in the number of people watching. While NBC’s prime-time audience has shrunk considerably from what it was for the Rio games five years ago, the Olympics broadcasts are still bringing in significantly more viewers than even the most popular entertainment shows. The most recent episode of CBS’s “Big Brother,” a ratings leader, drew an audience of less than four million.
“We had a little bit of bad luck — there was a drumbeat of negativity,” said Jeff Shell, the chief executive of NBCUniversal, during a conference call last week, after NBC’s parent company, Comcast, reported its second-quarter earnings. The less-than-festive atmosphere, he added, “has resulted a little bit in linear ratings being probably less than we expected.”
a television critic for Vulture. “But more than anything, watching this year has shown the wounds that we’re dealing with.”
Ms. Chaney noted NBC’s interview with the American swimmer Caeleb Dressel right after he won gold in a glamour event, the men’s 100-meter freestyle. Moved to tears, Mr. Dressel said, “It was a really tough year. It was really hard.”
The 13-hour time-zone difference between Tokyo and the East Coast may have also figured in the drop in prime-time viewers. Many people in the United States have been waking up to phone alerts trumpeting the medal winners who will be featured in that night’s broadcast.
all-around win — seemed to gain traction not so much on TV but in snippets shared on social media. That trend has been apparent in the number of followers for NBCUniversal’s Olympics channel on TikTok, which have shot up 348 percent since the opening ceremony.
Those who decide to watch must choose from a jumble of channels and digital options. In addition to NBC, the coverage is spread across NBC Sports Network, CNBC, USA Network, the Olympic Channel, the Golf Channel, the Spanish-language channels Universo and Telemundo, not to mention NBCOlympics.com, the NBC Sports app and Peacock.
There are so many choices that NBC’s “Today” show brought in Steve Kornacki, the political correspondent best known for elucidating election results, to break it all down. “If you’re a badminton fan, you’re going to be looking for NBCSN,” he told viewers. “If you’re an archery fan, USA Network. There’s all sorts of different possibilities!”
Jim Bell, who stepped away from Tokyo planning in 2018 when the company placed him in charge of “The Tonight Show Starring Jimmy Fallon.” He left that program and NBC a year later.
Ms. Solomon said she has been waking up at 4:30 a.m. in Tokyo and relying on double-shot lattes to get her through workdays that may go till 11 p.m. She does not share the opinion of some critics of the coverage.
“Every day, new stars arise, and new stories come to the fore,” she said. “So, personally, I don’t want it to end.”
In the view of Mr. Costas, who guided viewers through NBC’s Olympics coverage from 1992 through 2016, any comparison of the Tokyo games with previous competitions is not fair, given the pall cast by the pandemic. And three years from now, if all goes according to plan, NBCUniversal will get what amounts to a do-over in Paris.
“Paris 2024 will be, we hope, fingers crossed, much more like a classic Olympics situation,” he said. “That will be a more legitimate test.”
Ms. Carreon-John noted that more than a third of the U.S. track and field women’s roster is made up of Nike athletes. “Individual situations of a handful of athletes are not representative of Nike’s support of women’s sport,” she said, adding, “No footwear, apparel or equipment manufacturer provides the level of support Nike provides to women’s sport, period.”
To be sure, Nike is a huge company and has supported a sprawling number of athletes for decades. “Nike has done a lot of great things, but sometimes when you’re the big brand, there are more opportunities to get things wrong at the end of the day,” said Merhawi Keflezighi, founder of HAWI Management, who represented Mr. Berian and manages Ms. Pappas. He commended the company for changing its policies for pregnant athletes and added that since 2016, the industry has become less aggressive about reduction clauses in contracts.
The new sponsorship opportunities are arising as the athletic apparel market continues to grow — a trend further fueled by the pandemic. Athleta and Lululemon were among the rare apparel brands that saw sales soar last year. In the running world, there were five to six brands that were more visible at the U.S. Olympic trials in Eugene, Ore., in June than in the past, Ms. Neuburger of Lululemon said.
“The athletic sportswear and athleisure market is transforming from growth to maturity with newer and rising entrants,” said Angeline Close Scheinbaum, associate professor of marketing at Clemson University. “So naturally, a shift in athlete endorsers from the market leader to other brands is occurring.”
Dr. Scheinbaum said that she viewed the trend as less of an exodus from established leaders and more about “athletes, especially women, joining a smaller brand that can become synonymous with these star athletes and their platforms and stories.”
Indeed, brands that are pursuing elite women athletes are keen to embrace their backgrounds and causes that matter to them. Ms. Cain said that the most famous women athletes have often become household names because they have an “and” tied to their performance — “athlete and activist” or “athlete and mental health advocate,” she said.
“Unless you have five different ways to sell yourself, you’re just not valued monetarily in the same way as the white dude next to you is,” she said. While that dynamic is unfair, she said, it has created a situation where women athletes often have bigger and more engaged followings online, and more brands are starting to take notice of that.
The Olympics have long been an almost ideal forum for companies looking to promote themselves, with plenty of opportunities for brands to nestle ads among the pageantry and feel-good stories about athletes overcoming adversity — all for less than the price of a Super Bowl commercial.
But now, as roughly 11,000 competitors from more than 200 countries convene in Tokyo as the coronavirus pandemic lingers, Olympic advertisers are feeling anxious about the more than $1 billion they have spent to run ads on NBC and its Peacock streaming platform.
Calls to cancel the more than $15.4 billion extravaganza have intensified as more athletes test positive for Covid-19. The event is also deeply unpopular with Japanese citizens and many public health experts, who fear a superspreader event. And there will be no spectators in the stands.
“The Olympics are already damaged goods,” said Jules Boykoff, a former Olympic soccer player and an expert in sports politics at Pacific University. “If this situation in Japan goes south fast, then we could see some whipsaw changes in the way that deals are cut and the willingness of multinational companies to get involved.”
blow to the Games on Monday when it said it had abandoned its plans to run Olympics-themed television commercials in Japan.
In the United States, marketing plans are mostly moving ahead.
For NBCUniversal, which has paid billions of dollars for the exclusive rights to broadcast the Olympics in the United States through 2032, the event is a crucial source of revenue. There are more than 140 sponsors for NBC’s coverage on television, on its year-old streaming platform Peacock and online, an increase over the 100 that signed on for the 2016 Summer Games in Rio de Janeiro.
“Not being there with an audience of this size and scale for some of our blue-chip advertisers is not an option,” said Jeremy Carey, the managing director of the sports marketing agency Optimum Sports.
Michelob Ultra commercial, the sprinting star Usain Bolt points joggers toward a bar. Procter & Gamble’s campaign highlights good deeds by athletes and their parents. Sue Bird, a basketball star, promotes the fitness equipment maker Tonal in a spot debuting Friday.
campaign featuring profiles of Olympic athletes.
“We do think people will continue to tune in, even without fans, as they did for all kinds of other sports,” Mr. Brandt said. “It’s going to be a diminishing factor in terms of the excitement, but we also hope that the Olympics are a bit of a unifier at a time when the country can seem to be so divided every day.”
NBCUniversal said it had exceeded the $1.2 billion in U.S. ad revenue it garnered for the 2016 Games in Rio and had sold all of its advertising slots for Friday’s opening ceremony, adding that it was still offering space during the rest of the Games. Buyers estimate that the price for a 30-second prime-time commercial exceeds $1 million.
Television has attracted the bulk of the ad spending, but the amount brought in by digital and streaming ads is on the rise, according to Kantar. Several forecasts predict that TV ratings for the Olympics will lag the Games in Rio and London, while the streaming audience will grow sharply.
NBCUniversal said that during the so-called upfront negotiation sessions this year, when ad buyers reserve spots with media companies, Peacock had received $500 million in commitments for the coming year.
“You won’t find a single legacy media company out there that is not pushing their streaming capabilities for their biggest events,” Mr. Carey, the Optimum Sports executive, said. “That’s the future of where this business is going.”
United Airlines, a sponsor of Team U.S.A., scrapped its original ad campaign, one that promoted flights from the United States to Tokyo. Its new effort, featuring the gymnast Simon Biles and the surfer Kolohe Andino, encourages a broader return to air travel.
showcasing skateboarders. “People are quite fragile at the moment. Advertisers don’t want to be too saccharine or too clever but are trying to find that right tone.”
Many companies advertising during the Games are running campaigns that they had to redesign from scratch after the Olympics were postponed last year.
“We planned it twice,” said Mr. Carey of Optimum Sports. “Think about how much the world has changed in that one year, and think about how much each of our brands have changed what they want to be out there saying or doing or sponsoring. So we crumpled it up, and we started over again.”
FIFA World Cup in Qatar in late 2022 and the Beijing Winter Olympics in February, both of which have put the advertising industry in a difficult position because of China’s and Qatar’s poor records on human rights.
First, though, ad executives just want the Tokyo Games to proceed without incident.
“We’ve been dealing with these Covid updates every day since last March,” said Kevin Collins, an executive at the ad-buying and media intelligence firm Magna. “I’m looking forward to them starting.”
Also in late February, Blueacorn and Womply got an unexpected tailwind from a major rule change by the Small Business Administration, which oversaw the loan program. Concerned that women and minority-led businesses were being disproportionately left out, the Biden administration overhauled the loan formula to award sole proprietors — a group that includes contractors and gig workers — loans based on their reported revenue rather than profit. Overnight, millions more qualified for help. Drawn in by the marketing campaigns, they stampeded toward the two companies.
By early March, “we were overrun with demand,” said Blueacorn’s Mr. Calhoun, a private equity veteran who joined the company that month to help manage its growth. “We had a 24-hour period where we went from 15,000 new customer service tickets to 27,000,” he recalled. “Those are Amazon-like levels.”
Blueacorn rented call centers and trained hundreds of temporary workers to troubleshoot. Womply redeployed nearly all of its 200 employees to work on loan issues. Both companies still struggled to keep up. On Reddit groups and social media sites, thousands of borrowers complained about delays, poor communication and problems resolving errors.
Louis Glatthorn, an Uber driver in Boone, N.C., who goes by Bob, applied on Womply’s website on April 7 and signed the paperwork two weeks later for a $7,818 loan. But the money — which is listed in government records as approved — has not been paid by Benworth Capital, one of Womply’s partners. Mr. Glatthorn’s attempts to reach Womply for help have been unsuccessful.
“You can never talk to a person or actually make contact,” he said. A Womply representative declined to comment on Mr. Glatthorn’s experience.
Others had a smoother run. Dan Bourque, an Uber driver in San Francisco, saw Womply’s ads and applied for a loan in mid-April. Seventeen days later, he had a $10,477 deposit — funded by Fountainhead SBF, another of Womply’s partner lenders — in his bank account. For that loan, the process “was flawless,” he said.
The Money Pours In
The millions of tiny loans the two tech companies enabled, coupled with Congress’s decision to make small loans more lucrative, led to gigantic payouts for small lenders. Last year, Prestamos made $1.3 million for its lending. This year, it will collect nearly $1.2 billion, according to a New York Times calculation of lenders’ fees based on government data.
Mr. Yin sold millions through a feature on Kuaishou that allows viewers to buy products touted by influencers on the online retailer JD.com without leaving the video app. It was unclear whether he had any ties to the manufacturers of the products he hawked, or whether brand collaborations and paid promotion have to be disclosed on the Kuaishou platform. During the broadcast, he denied promoting the products for profit. He could not be reached for comment.
While many viewers in China have come to expect, or even seek, a degree of product promotion with their entertainment, Mr. Yin’s use of a major life event as bait crossed the line for some. Many complained online that the livestreamed wedding engagement had turned into a home shopping network show.
One user named OrangeVenus wrote: “99% of the broadcast were dull introductions to merchandise. It’s no different from looking at the promotional web pages on Taobao.”
“Yin Shihang should have been banned long ago,” another said.
But some said that the platform’s punishment was excessive and that they would miss the influencer’s shenanigans.
Mr. Yin had never advertised the marriage proposal as a surprise. He and his girlfriend, Tao Lulu, had broken up and reconciled several times in the past, according to local news outlets. But for their engagement, she had dressed in a white lacy gown and appeared in a teaser video with Mr. Yin to announce the date and time of the special event.
After lurching into the room on the pony, Mr. Yin proceeded to hold up and describe in detail items like a scratch-free mirror, necklaces and lipstick he claimed he had custom-ordered for his girlfriend ahead of May 20, an unofficial Valentine’s Day in China, when romantic partners buy gifts for one another. (The date, 520, sounds vaguely like “I love you” in Mandarin.)
After the engagement scandal, Kuaishou, which bans the “malicious creation of gimmicks to get clicks and likes” and various forms of “vulgarity,” said it would crack down on the creation of sensationalist and “vulgar hype” for the purposes of promoting and selling products.
LOS ANGELES — In today’s world of celebrity branding, captions speak louder than words. But Naomi Osaka’s are decidedly understated.
“Keep on keeping on,” the 23-year-old tennis champion posted on Instagram under two on-court photos after making it through the fourth round of the Australian Open (which she went on to win).
For a slide show that began with a shot of the Metropolitan Museum of Art, whose Costume Institute Gala she will co-chair, in September: “oh we lit.”
Below a portrait of herself draped in Louis Vuitton and Nike (both sponsors of hers), simply: “yo.”
Her nonchalance, perhaps, is a way of guarding herself on social media, where many more loquacious celebrities have made unforced errors.
business is boomin’. Ms. Osaka is covering everything from ears to rears, making headphones with Beats, athleisure with Nike and denim with Levi’s. Dresses? She designed them with Adeam, a Japanese-American brand. Swimwear? She crafted a collection with Frankies Bikinis.
In April, she announced that she would serve as C.E.O. of her own company: Kinlò, a line of skin care made for people with melanated skin tones, produced with GoDaddy. According to Forbes, she made $37.4 million in endorsements and tournament prizes between May 2019 and May 2020, the most a female athlete has ever earned in a single year.
pain medication, watches (which Ms. Osaka also does, for Tag Heuer) and the ever-changing category of fast food. On a Monday in March, Ms. Osaka found herself in the Los Angeles test kitchen of the chain restaurant Sweetgreen, the Supreme of salad, trying to wrap her head around the notion that one of the restaurant’s dressings — rémoulade — would soon be disappearing from the menu.
“What’s in it that makes it seasonal?” Ms. Osaka said.
“The pickles,” said Katelyn Shannon, a research and development chef of Sweetgreen.
blog post Women Laughing Alone With Salad went viral. Most of those women were white; perhaps none of them compelled anyone to eat a salad (unironically, anyway).
“Representation is important,” said Ms. Osaka, who is Haitian and Japanese. (Part of the proceeds of a salad she designed for Sweetgreen — with baby spinach and tortilla chips, among other ingredients — will go toward nonprofits working to increase food access in Asian-American and Pacific Islander communities.)
this was a turning point: taking a stance increased her brand value. She shortly thereafter teamed up with Basic Space, an online swap meet for hype beasts (sample items for sale include a St. John coat and a Range Rover) to sell 500 masks designed by her 25-year-old sister, Mari. They sold out in 30 minutes, with proceeds going to UNICEF.
The Unsuspecting Player,” reaching $150,000. It is a Mangaesque imagining of a brown-skinned woman with a tennis racket and a cascade of pink hair not unlike a wig Ms. Osaka wore in a recent Instagram post.
“I’ve always felt like my sister knows me best,” Naomi Osaka said during an April interview on Clubhouse, the audio broadcasting app. “I’ve grown up watching her draw and do digital art and paintings, I always wanted to find a way to use my platform to showcase that.”
“Though maybe not exactly how I am,” she added, “she captured me well.”
It was Ms. Osaka’s first time on Clubhouse, and she did not hide her bemusement when the volume of Mari’s audio dwarfed her own. “I’m literally right next to my sister, so I don’t get why I have a bad connection and she doesn’t,” she said.
Many of her brand partnerships involve Mari. They collaborate on sketches for clothing Ms. Osaka designs with her fashion sponsors, like an upcoming capsule collection with Levi’s. “I draw really badly, she can make it look good,” Ms. Osaka said. “She’s able to interpret. Sometimes we don’t even have to talk for her to understand what I’m thinking.”
Before the pandemic, Ms. Osaka visited the Levi’s workshop in West Hollywood to conceptualize the pieces, which include an obi-inspired bustier and denim shorts with crystal fringe. When in-person meeting became impossible, she went on Zoom, signing off on 10 designs before they went into production.
“As a little kid, I would watch ‘America’s Next Top Model’ and ‘Project Runway,’ and those were sort of scratching the surface of what goes on behind the scenes,” she said. At Levi’s, she said, she could see the process, “how technical they are about buttons and cutting fabric.”
Far from the celebrity sponsorship model of yore, in which stars of syndicated TV shows claim to color their own hair at home, Ms. Osaka does not want to work with a company unless she’s learning on the job.
As companies scurry to make up for decades of underrepresentation of races other than white, Ms. Osaka is aware that she may seem like the golden ticket.
“I don’t just want to be a figurehead, or someone used,” she said. “If I’m with a brand, I want it to be from my heart instead of just trying to promote a message, just for money.”
Surely, some thirsty brands have offered some pretty sweet deals?
Ms. Osaka laughed. “That’s really a him question,” she said, gesturing at Stuart Duguid, her agent and manager.
“She’s not taking incoming calls,” he said.
Back in the test kitchen, Ms. Osaka had cast herself, convincingly, as student in salad master class, asking about the pros and cons of various greens, what ingredients go together, watching and learning as Mr. Ru, the Sweetgreen co-founder, demonstrated the proper way to mix with tongs “You’ve got to do the twist,” he said, flipping his wrist.
Upstairs, in a makeshift conference room, she photographed a mood board taped to a concrete wall. She gazed at the unfinished ceiling and a rattling screen window. “Really pretty architecture,” she said, sincerely. . Many celebrities are more keen on checking their texts than looking around the room. That’s not Ms. Osaka, or her brand.
“I’m very curious about a lot of things,” she said. “Being curious is one of the happinesses of life, because if you’re not curious, that means you’re sort of settled. I feel really humbled, that I play tennis but I’m able to have all these new experiences and opportunities, like getting to make a salad here. I don’t think a lot of people can say that.”
“I’m really good at tennis,” she added, “but I’d like to be really good at other things, too.”
Fox News, the cable news giant controlled by Rupert Murdoch, kept its parent company flush in the first three months of the year, notching a slight gain in profit and sales despite a drop in viewers.
Altogether, Fox Corporation beat Wall Street expectations with a sevenfold increase in profit to $567 million and a 6.5 percent drop in revenue to $3.2 billion compared with the same period a year prior. A change in how the company valued some of its assets was a key reason for the profit surge. Investors were looking for a $332 million profit and $3.1 billion in sales.
But revenue at most of its businesses dropped as fewer viewers tuned into the company’s cable channels and the Fox broadcast network, in part because Fox did not host the Super Bowl this year. Total advertising sales fell 24 percent to $1.2 billion, with the cable segment, primarily Fox News, seeing ad revenue drop 7 percent to $283 million.
The decrease in advertising mirrors the performance at other media conglomerates and spotlights a significant shift in the advertising market. Ad revenue jumped at Facebook, Google and even smaller digital publishers in the first quarter as advertisers were more willing to spend their budget on digital platforms, often at the expense of television.
overrated” and downplayed the severity of the brewing pandemic.
In a statement announcing the acquisition, Lachlan Murdoch, chief executive of Fox Corporation and the son of Rupert Murdoch, welcomed Mr. Travis. “Clay and his team have quickly made OutKick a content powerhouse with a very large, loyal and engaged audience.”
Despite the drop in viewers at Fox News, the network benefited from contractually triggered rate increases that cable operators pay to carry the channel. Licensing fees rose 6 percent to $1.07 billion. Advertising fell despite charging higher ad rates.
The younger Mr. Murdoch claimed victory for Fox News in a call with investors after the earnings report.
“Fox News reclaimed its leadership position as America’s No. 1 cable news network and the most-watched cable network in prime time,” he said before taking a moment to take a jab at rivals.
“MSNBC lost more than one-third of its audience and CNN lost over half,” he said. “Over half.”
Twitter plans to acquire the subscription service Scroll, the social media company announced on Tuesday, as it expands its plans for subscription offerings. The two companies declined to disclose the deal terms.
Scroll charges its users a fee to block advertising on participating news websites, then distributes a cut of its earnings to its partner publishers, which include USA Today, Vox and The Atlantic. Publishers can earn up to 50 percent more from the service than they do from advertising, Scroll contends. Twitter plans to integrate the service into its platform, and use its technology to build other subscription services.
“People come to Twitter every day to discover and read about what’s happening,” Mike Park, Twitter’s vice president for product, said in a blog post announcing the deal. “If Twitter is where so much of this conversation lives, it should be easier and simpler to read the content that drives it.”
In recent months, Twitter has begun to add paid subscriptions, and announced plans to introduce other subscriber features in the future.
Twitter acquired Revue, a newsletter provider, and said it would take a 5 percent cut of subscription revenue. In February, the company revealed plans to introduce “Super Follows,” a feature that would allow Twitter users to place some of their content behind a pay wall. And this week, Twitter said it planned to add a ticketing feature to its audio chat, Spaces, so that hosts can charge listeners for entry into their discussions.
Twitter plans to supplement its advertising revenue with revenue from subscriptions, and has raced to add content like newsletters and audio chats that it thinks audiences will pay for. Its acquisition of Scroll will add journalism to that list.
“For every other platform, journalism is dispensable. If journalism were to disappear tomorrow their business would carry on much as before,” Tony Haile, Scroll’s chief executive, wrote in a blog post. “Twitter is the only large platform whose success is deeply intertwined with a sustainable journalism ecosystem.”