How in-app monetization presents both a challenge and opportunity for publishers

Jonas Åström, Founder and CEO of Recuro, discusses the shift from declining digital ad revenues to digital subscription models for publishers and media outlets, highlighting the success of The New York Times with over 10 million subscribers. In Northern Europe, up to 40% of the population pays for online news, benefiting incumbents with strong brands and organic traffic. However, Åström points out that in-app monetization offers potential yet presents challenges due to margin-sharing with app stores and the loss of direct user relationships. He explores strategies for publishers to utilize apps, such as differentiating pricing between in-app purchases and websites, and notes exemptions for "reader" apps that allow linking to external checkout flows, as seen with Swedish publisher Dagens Nyheter. Additionally, Åström mentions startups like informed.so, which fully integrate their news consumption and subscription models within app stores, presenting a model larger publishers might consider.