Jack Marshall and Steven Perlberg, writing for the Wall Street Journal:
The company mistakenly has been underestimating the number of readers using the News app since its launch, and passing that inaccurate information on to publishers.
Publishers don’t pay to post their content to the News app, but getting an accurate tally of users is important because it can affect their ability to sell advertising and to manage their resources accordingly. Apple allows publishers to keep 100% of revenue when they sell their own ads into the app; they keep 70% of ad revenue if Apple sells ads on their behalf.
Eddy Cue, Apple’s senior vice president of Internet Software and Services, said the company missed the error as it focused on other aspects of the product. The company didn’t explain how the problem occurred or say exactly when it might be rectified.
“We’re in the process of fixing that now, but our numbers are lower than reality,” he said. “We don’t know what the right number is,” but he added that it was better to undercount than overcount traffic.
That last is certainly true, but this is an embarrassing hiccough that Apple News did not need.