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Newsadoo reinvents the daily newspaper and launches “Spotify for News”

David Böhm was no longer willing to stand idly by while Google and Facebook increasingly share out the market for advertising revenues among themselves. For this reason, together with other like-minded parties, he has now established a new platform along the lines of Spotify: Newsadoo. The new service bundles various newspapers and news providers and analyses the readers' preferences with the aid of Artificial Intelligence.

Newsadoo Website

Despite heavy investments and a very good reach, the share of publishers in digital turnovers is on average just seven percent. Up to now, it has not proved possible to translate the reach in the digital sector into revenues. To date it has been mainly digital players, such as Google and Facebook, that have benefited from the trend that growing numbers of readers consume their news independent of place and time via digital devices. “Google alone now has higher annual advertising revenues than all the publishing companies in the world together. And Google and Facebook are responsible for 96 percent of growth worldwide (excluding China) in online advertising”, says David Böhm.

Consequently, this CEO is now taking the initiative by combining forces with the publishers and counting on their willingness to cooperate. Individual attempts undertaken by publishers to establish new revenue models for the digital sector have been only moderately successful so far. Newsadoo could close this gap and become a new digital business model for all participating parties. The Austrian publishing company, 18th Floor Onlinemedia, developed the platform as a new news ecosystem with the Pulpmedia marketing agency.

“We simply do not believe that individual publishers can develop solutions that have the potential to become successfully established in the competitive, worldwide online market”, says Newsadoo CEO Böhm. What is needed is a full focus on the users, what they want and what they are prepared to pay for. The objective is to create a news platform for personalised news, but one that differs from Google News by taking as a basis the collaboration and participation of the publishing companies. It is only by acting together that it is possible to challenge the American giant. “We have developed a solution that can work for all players in the European publishing industry and that offers a genuine prospect for the future.” The publishers will be able to generate more traffic through the platform, but also achieve revenues proportionately in line with the reach of the content. In addition, the new European solution shall be in accordance with the EU values in relation to data protection.

Newsadoo Billboard

The Newsadoo team has carefully analysed media use behaviour in Europe and combined the resulting findings and experience in the developed news ecosystem. Users no longer consume contents from a single source, e.g. the daily newspaper, but instead draw their information from many different sources. “With Newsadoo, we bundle the content from all relevant sources in a single place, analyse it automatically using Artificial Intelligence and deliver it individually and with many add-on functions to the users”, says Böhm in relation to the core functionality of Newsadoo. As a special feature: news from different media can be read with only one registration and one monthly subscription. 

The users themselves select the sources: machine-learning algorithms ensure that the users receive what interests them and what is of relevance to them. Identical or very similar content from different sources is recognised automatically and displayed together – not chronologically, but according to the user's preferences.

A first Beta version of Newsadoo has been available free of charge since the beginning of June 2018, currently in a desktop and mobile version, to be followed in July by the iOS and Android App and an Alexa Skill version. At present, for legal reasons, only content links are provided. The start-up plans to introduce the pay-for function in the autumn. Then it will be possible to consume traditional contents, though also Premium Content, directly on the platform. While the current, free-of-charge basic subscription includes advertising, the pay-for version will offer users an ad-free option.

“Naturally Newsadoo will only be a disruptive solution that can challenge Google, Facebook etc. in Europe provided more and more publishers join the initiative”, says David Böhm. “We have taken the first step, developed the system to technological maturity and will now direct our efforts towards getting the publishing companies to participate.”

About Newsadoo

The company was established under the name “18th Floor Onlinemedia GmbH” at the beginning of 2017 in Linz. Behind this company name are David Böhm, Alexandra Auböck and Susanna Wurm, the three founders of MACHER MEDIA HOUSE (Editoriaverlag GmbH) and Paul Lanzerstorfer and Robert Bogner, the founders of Pulpmedia. The start-up was recently awarded the title of one of “Upper Austria's Hottest/International Start-Ups” by the Aussenwirtschaft Österreich (Austrian Trade Agency) and Exportcenter OÖ. At the Dublin Tech Summit Newsadoo was presented as one of the most exciting international start-ups in the area of Artificial Intelligence. Newsadoo will be presented in the near future at the DCX Digital Content Expo in Berlin.

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