The publishing industry has been of two minds on AI’s rapid advancements – optimistic and cautious – sometimes within the same company walls. Business development teams explore much-needed new revenue opportunities while legal teams work to protect their art and existing rights. However, two major legal developments, the Thomson Reuters v. Ross Intelligence ruling and shocking new revelations in Kadrey v. Meta, expose the fault lines in AI’s unchecked expansion and set the stage for publishers to negotiate fair value for their investments.
One case confirms that publishers have a right to license their content for AI training and that tech advocates’ tortured analysis of fair use doesn’t throw out rights engrained in the U.S. Constitution or require publishers to opt-in to attain them. The other case suggests that Meta may have knowingly pirated books in its high-stakes race to keep up with OpenAI and that Meta’s notorious growth-at-all-cost playbook is more exposed than ever.
AI companies can no longer operate in a legal gray zone, scraping content as if laws don’t apply to them. Courts, lawmakers, researchers and the public are taking notice. For publishers, the priority is clear: AI must respect copyright from the beginning including for training purposes, and the media industry must ensure it plays an active role in shaping AI’s future rather than being exploited by it.
Thomson Reuters v. Ross: A win for AI licensing, a loss for those who intentionally avoid it
In a landmark decision, a federal judge ruled this month in favor of Thomson Reuters against Ross Intelligence, a startup that trained its AI model without rights or permission using the Reuters’ Westlaw legal database.
Judge Stephanos Bibas’ ruling in the Delaware district court is notable because he explicitly recognized the emerging market for licensing AI training data. This undercuts the argument that AI developers can freely use copyrighted works under “fair use” factors. And, consistent with DCN’s policy team, it also highlights the significant importance of the fourth factor of fair use, which publishers have been demonstrating with the signing of each new licensing deal.
For publishers, this is a crucial precedent for two reasons:
AI training is not automatically fair use. Content owners have the right to be paid when their work is being used to train AI.
A market for AI licensing is forming – this is the fourth factor. Publishers should define and monetize it before platforms dictate the terms.
This decision marks a turning point, ensuring that AI development doesn’t come at the expense of the people and companies producing high-quality content. Sam Altman of OpenAI, and other leadership across the powerful AI industry, have attempted to invent a “right to learn” for their machines. That’s an absurd argument on its face but regularly repeated in high-profile interviews, as if the technocrats might will it into reality.
Kadrey v. Meta: Pirated Books, torrenting, and a familiar playbook
While the Reuters ruling validates AI licensing, Kadrey v. Meta reveals how some AI developers have worked to avoid it.
Recently unsealed court documents suggest that Meta employees knowingly pirated books to train LLaMA AI models used as their first commercial version (LLaMA2). Significantly, their fair use analysis shifted from “research” to making bank – a lot of it.
Evidence revealed that demonstrates this knowing strategic shift:
Meta employees downloaded pirated book datasets from a massive, pirated dataset, LibGen, with employees even using torrenting technology to pull it down.
They may have “seeded” and distributed this pirated content to others. That’s a potential violation of criminal code that their own employees sharedthis, “What is the probability of getting arrested for using torrents in the USA?”.
Meta worried that licensing even one book would weaken its fair use argument, so it didn’t license any at all.
Some employees explicitly avoided normal approval processes to keep leadership from having to formally sign off.
Some documents suggest Mark Zuckerberg himself may have been aware of these tactics with documents referencing escalations to “MZ.”
Meta appears to have stopped using this material ahead of LLaMA3, possibly signaling awareness that their actions were legally indefensible.
Making matters worse, Meta’s case is being overseen by Judge Vincent Chhabria in the Northern District of California. This is the same judge who sanctioned Facebook’s lawyers in its massive privacy settlement that led to record-breaking settlements approaching $6 billion with the FTC, SEC and private plaintiffs. In that case, Facebook was accused of stalling, misleading regulators, and withholding evidence related to its user data practices. In other words, Judge Chhabria knows Meta’s playbook: delay, deny, deflect.
Now, Meta faces a crime-fraud doctrine claim. This means that some currently sealed legal advice could be unsealed if it was in furtherance of a crime. If proven, this would not be a simple copyright dispute; it could potentially lead to criminal liability and further regulatory scrutiny. The Court is ordering Meta to unseal more documents this week.
Move fast, break things… again: Meta’s AI strategy mirrors its past scandals
The Kadrey case’s revelations closely resemble Meta’s past data controversies, particularly those that were all put into the basket of Cambridge Analytica. The many ongoing details of the cover up of the scandal are still emerging today. Unfortunately, they were mostly overlooked by the tech press corp who have not been tuned in to these issues for far too long.
For years, Facebook pursued a strategy of aggressive data harvesting to accelerate its growth in mobile where it had risk of being supplanted by new platforms. The company:
Scraped vast amounts of publisher and user data without clear consent.
Shared this data widely with developers in exchange for reciprocal access to their user data – fueling Facebook’s mobile market share grab.
Ultimately settled with regulators for billions after repeated privacy violations.
Now, in Kadrey v. Meta, history appears to be repeating itself. Internal documents show that Meta feared OpenAI and needed to accelerate its AI development. Thus, Meta felt pressured to take outsized risks. Meta’s approach to AI training follows a similar pattern:
Acquire the best data – legally or not.
Use it to gain an edge over AI competitors.
Deal with legal and regulatory fallout later, if necessary.
Recently unsealed documents even expose a documented mitigation strategy.
Remove data clearly marked as pirated (but only if it’s in the filename despite letting the coders strip out copyright info in the actual content)
Don’t let anyone know what data sets they’re using (including illegal datasets)
Do whatever possible to suppress prompts that spit out IP violations
Key takeaways for publishers and media companies
The Thomson Reuters and Kadrey cases demonstrate both the risks and the opportunities for publishers in the AI era. Courts are starting to push back on AI’s unlicensed use of copyrighted content. But it’s up to the publishing industry to define what comes next.
Here are the big issues we must address:
AI models need high-quality data. And publishers must ensure they’re compensated for it. The Reuters ruling proves that a growing licensing market for AI exists.
Litigation is working. The unsealed evidence in the Kadrey case suggests that even AI giants like Meta know they’ve crossed legal lines. Facebook isn’t dumb, evidence from other peer companies may be even more damaging. The plural press needs to be shining the light on these wrongs as national security isn’t an excuse for AI companies to break copyright law.
Publishers must be proactive in shaping AI policy. Big Tech will push its own narrative. Meta and Google pay front groups like Chamber of Progress to stretch the meaning of fair use both in the U.S. and across the pond. Media companies must work together to establish AI licensing frameworks and legal protections and reinforce existing copyright law.
Regulatory scrutiny on AI will intensify. If Meta is found to have used pirated data, it will accelerate AI regulations. This will not likely be confined to copyright but could extend across tech policy as it did in 2018, when one scandal exposed larger problems leading to Facebook being dragged before parliaments around the globe.
The future of AI depends on trust, ethics and media leadership
The past year has shown that AI is both a disruptor and an opportunity. The Reuters ruling confirmed publishers can and should demand licensing deals. The Meta revelations prove why that’s so necessary.
AI is reshaping media, but it must be built ethically. The publishing industry has both the legal and ethical high ground. And media companies must use it to define the next phase of AI’s evolution. The future of AI isn’t just about innovation. It’s about who controls the data and the IP – and whether the people who create it are respected or exploited.
Understanding the difference between having an audience and building a community isn’t just semantics—it’s a strategic necessity. With social referral traffic declining, third-party cookies being (semi) deprecated, and generative AI reshaping search, media organizations must reclaim their communities from third-party platforms. By fostering deeper engagement and stronger loyalty, they can create sustainable revenue streams and drive long-term growth.
Arc XP recently hosted a webinar featuring Mark Zohar, President and CEO of Viafoura, to explore how publishers can cultivate thriving communities. Below, we break down the key insights, strategies, and real-world examples that highlight why community-building is essential for long-term success.
Why community matters more than ever
Traditional approaches to audience acquisition, like relying on social media platforms for referral traffic, are no longer reliable. Social networks like Facebook and X are sending less traffic to publishers, and the rise of alternative content platforms like Substack and podcasts has further fragmented media consumption. Meanwhile, changes in Google’s search algorithms, which prioritizes user-generated content and community engagement, are shifting how audiences discover information.
Anthony DeRosa, former Head of Content and Product at ON_Discourse, expresses the urgency of this shift when he said, “Media companies should own their audiences. They’ve allowed tech companies to steal their content and monetize it by providing a platform for readers to discuss it. How absurd is that?”
The solution? Own your audience. Create spaces where audiences don’t just consume content—they engage with it, discuss it, and contribute to the discourse. As Mark Zohar put it, “An audience listens, while a community interacts, shares, and grows together.”
The benefits of community-building
An effective community strategy provides tangible benefits, including:
Higher Engagement & Retention – Community members spend 5.3x more time on-site and visit more frequently than anonymous users.
Increased Conversions – A strong community drives higher registration and subscription rates, with members being 31% more likely to pay for a subscription.
Reduced Churn – Engaged community members are 2.5x less likely to unsubscribe compared to passive readers.
Better First-Party Data – Communities provide valuable user insights, helping media organizations develop targeted advertising and personalized campaigns.
Stronger SEO – Google now prioritizes user-generated content, meaning active community engagement can significantly boost search rankings.
The Financial Times’ Next Gen News: Understanding the audiences of 2030 study found that younger, digitally native audiences are particularly drawn to participatory experiences. Many skip over full articles and head straight to the comments section to gauge the conversation. For them, community interaction isn’t just a feature, it’s the primary draw.
Building a community: the TRIBE framework
To successfully transition from an audience to a community, Zohar introduced the TRIBE framework, originally developed by Greg Isenberg, CEO of LateCheckout and former TikTok and Reddit Advisor. This framework serves as a guide for media organizations to evaluate how they are fostering community within their brand. TRIBE stands for:
Togetherness – Are we creating spaces where users can engage directly with our content and each other?
Rituals – What habits or recurring experiences keep our users coming back, such as weekly Q&As or interactive polls?
Identity – How are we fostering a sense of belonging through shared interests and values?
Belonging – Are we giving users a reason to feel invested in our community’s success?
Engagement – What opportunities are we providing for active participation, from commenting to user-generated content?
Leveraging the creator economy
A thriving community attracts creators, influencers, and contributors who can help expand reach and enrich discussions. To tap into this potential, media brands should actively collaborate with content creators, bringing fresh perspectives and loyal audiences into their ecosystems. This can be achieved through partnerships on platforms like TikTok and Instagram, as well as influencer collaborations within their own channels. By offering monetization opportunities and fostering engagement-driven spaces, media brands can encourage influencers to participate directly on their platforms rather than relying solely on external networks.
Examples of media brands successfully leveraging the creator economy include:
Yahoo for Creators – A platform that offers writers a community to share expertise and connect with engaged readers.
Forbes Contributor Network – A model where industry experts contribute content while benefiting from Forbes’ audience reach.
Community-building is a strategic priority
Community-building isn’t just about engagement. It is a direct driver of business growth. Organizations that invest in fostering vibrant communities see measurable benefits across key revenue and operational metrics:
Higher Revenue Per User – Community members generate 5x more revenue than general audiences.
Registration Growth – Implementing community features can double registration rates by offering a compelling value exchange.
Sustained Engagement – For some early adopters, community interactions now drive over 30% of total site registrations.
A well-designed community strategy transforms media brands from content distributors into engagement hubs, where audiences aren’t just passive consumers but active participants contributing to the brand’s success.
Foundations for a successful community strategy
For media brands looking to build a thriving community, success depends on three core pillars:
Intention – Community-building must be treated as a business strategy, not an afterthought. Define clear goals, KPIs, and secure executive buy-in to ensure long-term commitment.
Cultivation – A strong community is built on trust and inclusivity. Active moderation, clear user guidelines, and engagement incentives create a safe space where discussions flourish.
Operationalization – A community can’t sustain itself without consistent efforts. Media organizations must develop editorial playbooks, monetization models, and regular engagement cadences to ensure continued growth and participation.
The path forward: own your audience
Media companies can no longer afford to rely on third-party platforms to engage their audiences. Instead, they must take control by fostering direct relationships through community-driven experiences.
The future of media isn’t just about publishing content. It is about facilitating conversations, connections, and shared experiences. By embracing community-building as a core strategy, publishers can create deeper loyalty, drive sustainable revenue, and future-proof their businesses in an era of increasing digital fragmentation.
Artificial intelligence is rapidly transforming the way people access and consume news. With AI assistants increasingly serving as intermediaries between audiences and trusted news sources, it is essential to understand how accurately and reliably they present information. Unfortunately, according to recent research from the BBC, AI does not accurately deliver news.
In new research, the BBC is evaluating how well leading AI assistants—ChatGPT, Microsoft’s Copilot, Google’s Gemini, and Perplexity—deliver news-related answers. By granting these AI models access to its website, the BBC sought to assess its ability to effectively reference and represent its journalism.
This study examined the quality of AI-generated responses using 100 news-related questions, with BBC journalists evaluating them based on seven key criteria, including accuracy, attribution, and impartiality. The reviewers then determined whether the responses contain minor, significant, or no issues across these areas.
Significant errors in AI news
The results show that over half (51%) of AI-generated responses contain significant issues, while 91% exhibited some inaccuracy, bias, or misrepresentation. Specific issues include factual errors, misattribution of sources, and missing or misleading context. When evaluating how these AI assistants represented BBC content, the study finds that Gemini (34%), Copilot (27%), Perplexity (17%), and ChatGPT (15%) produce responses with errors in their use of BBC sources.
Accuracy and misinformation
AI-generated responses frequently report factual inaccuracies, even when citing BBC sources:
Gemini incorrectly states that the NHS discourages vaping as a smoking cessation method, despite BBC coverage explicitly confirming that the NHS supports vaping for smokers that want to quit.
Copilot misrepresents the case of rape survivor Gisèle Pelicot, falsely claiming that blackouts and memory loss led her to uncover the crimes against her.
Multiple assistants incorrectly report figures, such as significantly underestimating the number of UK prisoners released and misattributing Chrome’s market share statistics.
ChatGPT erroneously reports that Ismail Haniyeh, assassinated in July, is still an active Hamas leader.
Attribution and sourcing errors
AI assistants frequently misattribute or incorrectly source information. Some rely on older articles, leading to misleading conclusions. In several instances, assistants claim to summarize BBC reporting but include details that did not exist in the BBC articles.
Impartiality and editorialization
In addition to prevalent factual errors, AI assistants struggle with maintaining any semblance of journalistic impartiality. The study flags multiple instances where opinions are presented as facts, sometimes falsely attributing to the BBC as the source. For example, Perplexity characterized Iran’s actions in the Middle East conflict as “restrained” and described Israel’s response as “aggressive,” despite no such characterization appearing in the BBC article.
AI errors in news is a risk to public trust
These findings highlight serious risks in AI-generated news summaries. Misinformation can erode public trust in news media, whether due to factual errors, misleading context, or editorialized conclusions. Distortion of BBC’s content can have significant consequences. If these risks continue, audiences may question the credibility of BBC’s reporting.
AI assistants are set to play an increasing role in how people access news and because they do not generate meaningful traffic to media websites, it appears that the majority of people using them are not exploring further to determine the accuracy of the purported news AI delivers. This, it is critical that AI agents or chatbots endeavor to uphold the information ecosystem’s rigorous and trusted editorial standards.
Ultimately, AI developers are responsible for ensuring their products align with fundamental journalistic principles, including accuracy, impartiality, and reliable sourcing. The BBC warns that if these challenges go unaddressed, AI risks undermining the news organizations it depends on for credible information. As AI continues to evolve, the BBC emphasizes the need for the media industry to champion responsible AI integration to safeguard audiences and preserve journalism’s integrity.
Subscriptions remain a vital revenue stream for most media companies, but the landscape is rapidly shifting. In response, publisher strategies also need to adapt and evolve.
The days of easy subscriber growth are over. To drive subscription growth, media companies must double-down on addressing core challenges such as churn, consumer fatigue, declining social referrals, and opportunities afforded by AI to sharpen their engagement strategies.
This will mean focusing on retention and maximizing lifetime value. Media organizations will also need to refine paywall strategies and offer flexible, engaging, experiences to ensure audiences keep coming back – and, ideally, keep paying for your content.
To better understand these trends, I reached out to four leading industry experts: Kevin Anderson, Peter Houston, Greg Piechota, and Madeleine White, and examined the latest insights from WAN-IFRA and the Reuters Institute for the Study of Journalism.
Here’s what you need to know.
Trend 1: Retention is king
“Publishers long ago converted the low-hanging fruit of their most engaged audiences to subscribers,” notes Kevin Anderson, Director Consulting Services at Pugpig. This is one reason why, as the latest Digital News report revealed, subscription growth has largely flattened.
Moreover, in an era of news avoidance and on-going declines in social media referrals, “the flow into the top of the conversion funnels is drying up,” Anderson adds. “Growth is getting harder to find.”
As a result, a focus on retention will a key priority for publishers in 2025. Afterall, as Greg Piechota, Researcher-In-Residence at the International News Media Association (INMA), reminds us, “you make more money with higher retention than with higher price.”
An emphasis on reducing churn and developing long-term customer relationships can be seen across the subscription economy. Recurly’s 2025 State of Subscriptions report found that return acquisitions account for 20% of new subscribers, underlining the value of retaining your audience.
Tactics to successfully do this include payment flexibility (e.g. weekly, monthly and annual plans), and the ability for users to pause a subscription, rather than cancel it.
Local newspapers like the Bangor Daily News in Maine, enable you to pause your print subscription when going on vacation. The New York Times offers something similar. Applying this principle to digital products may reduce cancellations and keep more consumers engaged long-term.
This matters because, as The Daily Beast discovered, subscribers are worth 18 times more than unknown users. And that figure grows to 169% when revenue from first-party data and advertising is taken into account across channels such as newsletters and apps.
Retention strategies therefore need to encompass your whole product stack. Newsletters, apps, podcasts and push notifications aren’t just pathways to conversion. They are a means to drive revenue and deepen audience loyalty across multiple touchpoints.
Trend 2: Harness AI to become truly audience-first
Media companies have talked about being “audience-first” for years, says Madeleine White. But a lot of this potential is unfulfilled, she contends. White, VP Marketing at Poool, and Editor In Chief and co-founder of The Audiencers, believes advancement in AI offers a means to finally deliver on this promise.
AI allows us to segment readers based on interests, engagement levels, and traffic sources. This means that media companies can move away from generic offerings to more personalized experiences that support subscription growth.
White points to TIME’s Person of the Year experience as a case in point. Through the use of Generative AI, audiences could consume the cover story through a range of formats. This included an audio version, a concise summary, an in-depth analysis, and the ability chat with an AI assistant about the winner, President Donald Trump.
“Instead of simply kind of creating this single form, the article becomes shapeless,” White says. “It can be transformed and controlled by each reader, which is basically what audience first, is all about.”
Through the use of Generative AI, audiences could consume the cover story through a range of formats.
Trend 3: AI-powered paywalls become commonplace
Dynamic AI-driven paywalls are nothing new. But they are growing in adoption and sophistication. And this evolution offers subscription growth.
As INMA’s Piechota explains, “publishers are using data and AI to tailor paywalls more precisely. This boosts conversion by predicting both each user’s and each article’s propensity to subscribe.”
Hearst USA is one such publisher adopting this more sophisticated approach. They worked with Mather Economics to create a machine learning model that uses 75 different variables to trigger actions designed to mitigate churn and engender long-term customer loyalty.
“The biggest challenges lie around putting this into practice,” White contends. Many “publishers are kind of trying to jump the gun and go straight to a very machine learned AI based model,” she says. She recommends a more incremental approach. Articles that provide unique value should sit behind a paywall, White suggests. More “commodity content” can be open to all, in order to get as much advertising revenue as possible.
Argentina’s Clarín, the Spanish-language newspaper with the largest number of digital subscribers in the world, is already adopting this approach. As outlined by Spanish journalist and consultant Ismael Nafría, hindering access to what Clarin calls “decisive articles” is essential to persuading audiences to subscribe. The publication seeks to publish 10 to 12 of these kinds of articles per day.
Trend 4: Bundling 2.0
I wrote about bundling strategies back in May 2023. Since then, a growing number of publishers have sought to innovate and expand their efforts in this space to fuel subscription growth. Piechota observes how companies aren’t just bundling their own products. They’re “increasingly partnering with other publishers, even competitors, to engage broader audiences.”
One such business, The New York Times, “is obviously the Queen of the bundle,” says Peter Houston, co-founder of Media Voices and the author of The Magazine Diaries.
The Gray Lady recently announced it has more than 11.4 million total subscribers. However, that hasn’t stopped it looking for subscription-rooted partnerships, at home and abroad.
Meanwhile, both Anderson and Piechota point to the success of the Norwegian publisher Amedia as a leader in this space. “Amedia is a super bundler,” says Piechota, “selling readers access to more than 100 brands with one price and app.” He notes that 75% of digital subscribers at Amedia upgraded to such a bundle; compared to 50% at the Times.
Trend 5: An emphasis on pricing and value
Media companies are increasingly vying for our time, as well as our wallets. “If Netflix puts its prices up, do you cancel Netflix, which you watch for hours every week, or the hobbyist magazine which you love but only read once a month?” asks Houston. Against this backdrop, the perceived value of your offer will define a consumer’s propensity to subscribe or keep a subscription.
The breadth and depth of content you offer is part of this equation. However, specialist content, which allows you to dig deeper, can also be a major draw. As Houston explains, “super-niche coverage will also become attractive to consumers who want less distraction and more of what they really care about.”
Tortoise Media’s Daily Sensemaker podcast Is a case in point. It hits multiple consumer needs via a daily 10-minute show exploring a single topic, designed “to make sense of the world.”
“Value adds” can also be part of this mix. Membership models have long leaned into this, with a mix of exclusives, events and discounts. Last week the podcast The Rest Is Politics US announced that founding members would be able to join recordings of new episodes live on YouTube. Everyone else gets to see (or hear) the show a day later.
Print might also be part of the equation. In October, The Atlantic revealed it would return to monthly editions of its print publication due to subscription growth and a return to profitability. The title had been published 10 times a year for 22 years running.
And after a four-year hiatus, Saveur magazine, a 30-year-old gourmet, food, wine, and travel publication, resumed print editions last spring. “We see our print product as the couture of our brand,” Editor in Chief and CEO Kat Craddocktold The Publisher Podcast. “It’s for the superfans.”
In short, subscribers want to feel they are getting their money’s worth, both in terms of content and experience. Delivering on both of these fronts is the sweet spot publishers will increasingly need to hit to drive subscription growth.
Assembling strategic pieces for subscription growth
The subscription landscape is beginning to undergo a major transformation, driven by the need to innovate, and the ability to harness AI and audience data to create more tailored and media-rich offerings. These factors combine to create opportunities for subscription growth.
INMA’s Greg Piechota highlights the key takeaway. “The common thread,” he says, “is a blend of differentiated journalism and engagement-driving products.” And this must be underpinned by “mastery in data analytics, and a willingness to experiment.”
Success in this arena is vital for the financial health of most media companies. A survey of 326 media leaders in 51 countries, as the Reuters Institute’s annual predictions report, found that 77% of respondents said subscriptions were “likely to be important or very important” for their company in 2025.
To succeed publishers must move “beyond long and discounted trials, and targeted price increases at renewal,” Piechota contends. Moreover, as Pugpig’s Anderson points out, although many publishers have been trying to increase the average revenue per user (often through premium bundles), that’s not an option that’s open to everyone.
As a result, in the coming year, expect to see a refinement of subscription tactics, with an emphasis on retention, personalization, and flexibility. These principles will cut across price structures, bundling strategies and wider engagement strategies.
“The bottom line for subscriptions is that people don’t want to waste money or time on them,” argues Media Voices’ Houston. “So many people have a bloated subscription stack and the reckoning is coming.”
With many outlets continuing to see a decline in monies from advertising and print, an emphasis on reader revenue will remain a strategic priority.
As Poool’s White emphasizes, that means it’s more important than ever to deploy user-focused, audience-first approaches. These models value loyalty and long-term relationships more than short-term conversions.
Continued subscription growth is possible for media companies that understand and incorporate these factors. By evolving their subscription growth strategies, they will be most likely to prosper in the year ahead and beyond.
Dealmakers in the Technology, Media, and Telecommunications sectors (TMT) are entering 2025 with renewed optimism. This sector’s pivotal role in the AI boom drives investment opportunities, according to recent PwC research. Easing macroeconomic and geopolitical challenges, particularly in the U.S., has also set the stage for a favorable mergers and acquisitions (M&A) environment.
Media M&A market dynamics
PwC’s Global M&A Industry Trends Report notes that the U.S. administration’s focus on deregulation is poised to support megadeals (transactions exceeding $5 billion) and boost executive confidence. Anticipated interest rate cuts by central banks should foster a more vibrant M&A landscape.
According to PwC’s 28th Annual Global CEO Survey, 76% of TMT executives who made acquisitions in the past three years plan to pursue further deals within the next three years. This signals a strong strategic focus on media M&A for growth and innovation.
The evolving TMT landscape presents significant implications and opportunities for the media sector. These include:
1. AI as a growth driver
AI investments transform media content production, distribution, and audience engagement strategies. Premium media companies must harness AI to streamline workflows, deliver personalized content, and improve advertising efficiency.
2. Surge in media M&A activity
Media companies will likely pursue strategic acquisitions with regulatory and economic conditions becoming more favorable. Smart partnerships or mergers with technology firms can enhance digital capabilities and foster AI-driven innovations.
3. Capital spending
Extending capital investment in energy and real estate opens new avenues for media companies. Given these market dynamics, collaboration involving data centers or energy-efficient content delivery networks could become significant.
4. Deregulation trends
A more relaxed regulatory environment may facilitate the way for innovative cross-platform deals and media-tech partnerships. For some, this will unlock new revenue streams.
5. Evolving content and platform strategies
The shift in media consumption—toward digital-first platforms, podcasts, and creator-generated content—requires media companies to reassess their content strategies. Multi-platform distribution and niche content offerings will be critical to staying competitive.
6. Investor confidence spurs media M&A
Reduced macroeconomic pressures and lower interest rates will likely attract private equity investments. This will fuel innovation and expansion for forward-thinking media companies.
AI: a catalyst for investment
AI remains a focal point for investment, particularly in the U.S. In January 2025, a landmark $500 billion joint venture between OpenAI, Oracle, and SoftBank to develop a network of AI data centers. This venture should reinforce the U.S.’s position as a global AI hub.
Companies channeling capital into high-growth areas such as data analytics, automation, and generative AI enhance products to drive future growth. Notable deals in 2024, including Cisco’s $28 billion acquisition of Splunk and HPE’s $14 billion acquisition of Juniper Networks, exemplify this trend.
Regulatory and geopolitical shifts
The new administration is undergoing significant changes in the U.S. regulatory landscape. Appointments to the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) should foster a more deregulated environment, easing barriers to media M&A. These changes may have global implications, influencing deal activity in other regions.
After a prolonged period of high interest rates, central banks expect to implement gradual rate cuts in 2025. Lower borrowing costs will likely invigorate financial sponsors, reversing the trend toward corporate-led deals and a resurgence in private equity investment.
Media industry evolution
As the media landscape transforms, digital-first platforms necessitate strategic portfolio assessments. As companies adapt, transformative M&A, including divestitures of non-core assets, is likely. Vivendi’s recent restructuring and Comcast’s strategic moves exemplify this trend.
The Technology, Media, and Telecommunications sectors (TMT)sector is ready for a resurgence in M&A activity in 2025. The convergence of AI-driven innovation, regulatory shifts, and capital market dynamics creates fertile ground for strategic acquisitions. Those media businesses that are agile and responsive will seize new opportunities and navigate well in this dynamic landscape.
As frigid temperatures drove the Presidential inauguration indoors for the first time in 40 years, President Donald Trump once again took office surrounded by a who’s who of U.S. technology leaders. Even amidst the pomp and circumstance of this quadrennial event, few elements were as discussed and scrutinized as the presence of Big Tech’s most prominent leaders.
And yet, their presence and prominence should be of little surprise, given the level of scrutiny companies such as Meta, Google, Apple, and Amazon are facing from governments across the world, and how much they stand to gain or lose from developing close relationships with political leaders.
These companies, likely because of this scrutiny and the opportunities granted by a change in administration, are in the midst of significant policy restructurings aimed at better positioning themselves for the political realities of a second Trump administration. Most notably, Meta CEO Marck Zuckerberg announced days before the inauguration that the company was to “return” to a “fundamental commitment to free expression” by ending their third-party fact checking program and moving towards a community notes model.
Free speech will undoubtedly be the cornerstone of technology policy in the second Trump Administration and companies are certainly wise to publicly align themselves with this ideal. For media executives and content creators, this means ensuring that advocacy narratives both respond to the administration’s free speech concerns and respond to the free speech arguments promoted by Big Tech.
Executive action
On January 23, President Trump signed an executive order stating that the country must “develop AI systems that are free from ideological bias or engineered social agendas.” The President also stated that this executive order “clears a path for the United States to act decisively to retain leadership in AI, rooted in free speech and human flourishing.”
Although these actions are clearly focused on affirming the administration’s ideological stances and distancing the administration from its predecessor, using AI to profess broader policy positions was first done by the Biden administration. As the American public gained awareness of the promise and peril of AI in 2022, then-President Joe Biden unveiled an AI “Bill of Rights” which included protection from discrimination and bias as one of its key principles. Such language carried on to the now revoked Biden-era AI executive order.
Given the prominence of AI in the national discourse, it is logical that President Biden, and now President Trump, would utilize AI policy to assert ideological stances. While AI policy during the Biden administration was focused on combating AI-enabled discrimination against protected classes, the Trump administration is focused on the protection of free speech and combatting censorship.
Policy and power players
In the same way that Meta and Google have embraced policies that adjust to political realities, AI companies have begun to do the same. On January 13, OpenAI published its “Economic Blueprint.” The policy document is meant to present a framework that champions the “individual freedoms at the heart of the American innovation ecosystem.”
One of these freedoms, according to OpenAI, is that of “ensuring that AI has the ability to learn from universal, publicly available information, just like humans do.” This purported freedom should raise alarm bells for publishers and content creators. As the media industry continues to fight for the protection of its intellectual property, AI companies have set out to create a “fair use” argument for their past and future transgressions. Their focus on “individual freedoms” is a shrewd approach, and one that is aimed directly at the interests of the administration and its Congressional allies.
Fair use and fair licensing deals
2025 will be decisive year for AI policy that will see the most significant movement thus far for substantial industry regulation. If publishers and content creators are to successfully compete with the policy narratives of major tech companies and AI companies, then they too must embrace a narrative that highlights the threats to free speech and freedom posed by unregulated technologies that can misrepresent or censor political or personal viewpoints.
For example, if publishers and content creators can successfully argue that fair licensing deals will allow AI companies to license unbiased or ideologically diverse content libraries, and thus promote diverse viewpoints and avoid ideological bias, the policies they are advocating for will become more politically salient and will have a higher likelihood of capturing the attention of policymakers and the general public. This new administration is eager to make its mark on AI policy. Publishers and content creators must speak to the free speech priorities that now dominate political discourse, or risk being drowned out by more powerful voices as much-anticipated legislation is finally set in motion.
A few weeks ago, a colleague and mentor said something in passing that has stayed with me. To paraphrase, he mentioned that in journalism, we often assume others know as much as we do. It strikes me that this assumption can create a gap between the information we provide and the audience’s ability to connect with it. And let’s be real: that disconnect blocks impact.
Journalism drives action when it delivers clear, relevant, and accessible reporting that meets people where they are. Strong reporting builds trust, deepens engagement, and empowers communities to make informed decisions. It shapes public opinion, sparks movements, and creates change that leads to accountability, policy shifts, and meaningful progress.
Having led audience development initiatives for some time, I’ve seen firsthand the tangible benefits that can come when journalism makes complex topics accessible. Meeting people where they are means delivering information in clear, relatable ways that demonstrate its real-life impact, which fosters trust, engagement, and community connection.
This does not just apply to journalism. This approach is also relevant to conversations with editorial leaders about balancing journalistic integrity and audience engagement. Again, we cannot assume they know as much as we do and must make our expectations and the tools and strategies available to execute on these expectations clear.
Editorial leaders face the dual challenge of maintaining its responsibility to inform while engaging audiences who demand greater transparency, accessibility, and relevance. Addressing this requires rethinking how stories are communicated to bridge divides by focusing on shared values rather than exacerbating polarization. Strong storytelling drives dialogue, encourage discussion, and help rebuild trust with audiences who feel divided or doubtful.
Get to know (and grow) your audience
To grow audiences and increase engagement, editorial leaders need to adapt strategies to match how people consume and trust information today. No, this doesn’t simply mean on mobile and social. “Finding audiences where they are” is not enough. You need to actually get to know your audience before you can effectively serve their needs. Getting to know them is an essential piece of figuring out where information-gaps exist and how to fill them, for example.
Start by surveying audiences, conducting listening sessions, analyzing traffic patterns across onsite, organic, and social channels, and reviewing subscriber feedback to assess brand perception and visual identity. Use those insights to refine tone and language, showcase endorsements or visible metrics, update the “About Us” section, highlight journalist profiles, segment audiences for targeted communication, incorporate verifiable callouts, and maintain consistency in published content.
Reflect your audience to build trust
Growing audiences also requires addressing the structural causes behind audience disconnection. Ideological divides and algorithm-driven echo chambers make it harder to build trust and keep audiences engaged. To counter this, clearly communicate the value of your content by showing how your organization challenges the status quo, reinforces its mission, and provides direct solutions. Frame your message in a way that naturally encourages advocacy from like-minded audiences. Ensure representation reflects audience diversity, and tailor content delivery to match how people prefer to engage with information.
Trust grows when actions align with the audience you serve, but first you must understand who they are and meet them where they are. Consistency builds credibility and strengthens brand identity, turning one-time visitors into loyal audiences. For news organizations, especially in their early years, this means committing to a clear identity shaped by audience insights and reflective of their needs. Affirm your strategy’s success through sustained engagement by measuring retention, conversion, and repeat traffic. Use these insights to determine whether your strategy is deepening loyalty, increasing audience investment, and driving long term growth.
Data-informed insights & digital delivery
Balancing data-informed strategies such as tracking which topics attract first-time readers versus repeat visitors, adjusting publishing cadence based on audience activity peaks, analyzing reader pathways to identify engagement drop-offs, and testing different story formats to improve retention drives audience growth. Understanding audience motivations through behavioral data matters as much as recognizing local societal dynamics and adapting to shifts in engagement patterns. These factors aren’t always consistent or easy to pinpoint, and responding to them requires time, testing, and iteration.
No single strategy will engage everyone in your audience, and content will not always resonate with everyone all the time. Audience development is not an exact formula and some critical stories may miss the mark when they fail to reflect the priorities or lived experiences of the people they’re trying to serve. Sustainable audience growth depends on continuously improving approaches that attract, retain, and strengthen connections over time.
A key question in growing audiences is whether to focus on serving your current audience or to tap into new demographics with new content opportunities. Expanding reach and strengthening existing relationships are both viable paths. Start by identifying your total addressable market and assessing how its behaviors, interests, and demographics compare to your current audience. Determine what percentage of that market is realistically interested in your coverage. Evaluating whether potential audiences already have media sources that meet their needs helps avoid targeting oversaturated spaces.
It is equally important to understand conversion rates based on industry benchmarks. If a new audience segment fits a specific niche, analyzing how they consume content, their engagement habits, digital preferences, and preferred formats helps shape outreach strategies. In many cases, the available market is smaller than expected but also more precisely defined, making growth efforts more focused and effective.
Mind the gaps and make connections
At the same time, content gaps or overlooked opportunities may exist that were not initially on your radar but align with your existing approach. Identifying these unmet needs allows you to serve an audience that lacks a dedicated media outlet, providing coverage that fills an information gap.
Bridging the gap for practical and effective audience growth is a distinct challenge and a responsibility that requires breaking from outdated assumptions. It means rejecting the idea that audiences share the same knowledge and context as those working in journalism. Industry insiders often take their expertise for granted, leading to content that fails to connect. Audiences bring different experiences, perspectives, and levels of understanding. Trust and engagement grow when news organizations listen, adapt, and present information in ways that reflect the realities of the people they serve.
Audience development is about making journalism accessible through collaboration, research, a deep understanding of the reader base, and a thoughtful storytelling approach. Strong reporting bridges divides, challenges misinformation, and gives people something worth investing in.
If we assume that others already know what we know in journalism, we fail to recognize the gaps in understanding that weaken trust and engagement. Our job is not just to inform but to bridge those gaps and meet audiences where they are – to help get them where they want to be.
The subscription media landscape continues to evolve, reshaping how consumers engage with digital content and how businesses strategize to maintain their market share. As digital media matures and price sensitivity increases, the market has responded with innovative pricing models and premium offerings.
The DCN Digital Media Subscription Tracking Report provides insights into these changes, offering year-over-year trends and brand-specific data exclusive to DCN members. Here are key highlights from the latest report:
Subscriptions Decline, Spending Rises: While the average household subscription count fell by 4% in Q4 2024, annual spending on digital subscriptions grew 7%, indicating a shift toward prioritizing high-value services.
Bundling Gains Popularity: 59% of SVOD subscribers opted for bundles in Q4 2024, up from 52% earlier in the year, as consumers seek value-driven solutions.
Ad-Supported Tiers Surge: Consumers increasingly choose ad-supported streaming services to cut costs. SVOD with ads saw a 14% increase, while no-ad services declined by 12%.
Top Performers in SVOD: Amazon Prime Video with ads quickly ascended to the top spot among users. Hulu with ads rose to third, Peacock with ads rose to fourth, while Disney+ Premium with no ads dropped to fifth place.
As the media subscription landscape continues to evolve, innovation in bundling and tiered options remains crucial. These findings underscore the resilience of premium digital content and the importance of staying attuned to evolving consumer needs.
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/ An inside look at the business of digital content
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