The News Subscription Model’s Quest for Trust
In a world where millions of search results are available instantaneously, what, if any, information are we willing to pay for? At least I think that was the question a New York Times article on subscription models was getting at, but I wasn’t willing to pay to read past the first paragraph. More and more people are getting their news online, with 65% of adults in the UK using the Internet to stay updated on the news (Ofcom, 2020) and print newspaper sales in the UK falling by two-thirds over the past two decades (Mayhew, 2020). The flood of free sources online challenges newspapers to prove that they have something to offer that’s worth paying for.
The Subscription Model
To evolve with the digital takeover, newspapers and their business models have had to evolve as well by finding a way to translate their model of print subscriptions to the digital platform. The reader pays monthly or annually and gets unlimited access to a source’s news online. The New York Times is a major success story of the model. In 2020, the paper added 2.3 million digital-only subscriptions, reaching its record, 7.5 million subscriptions. In addition, 2020 was the first year the paper’s digital revenue overtook its print revenue, and digital subscription revenue was its largest revenue source (Tracy, 2021).
The subscription model exists as an alternative revenue stream to a free advertising model. One source claims that Facebook and Google take 65% of revenue from digital advertising, and therefore “any news site refusing to make the switch to subscription will be left fighting an uphill battle — against the digital giants — for scarce viewership” (Nikolov, 2020). Subscription also provides new revenue streams through partnership and bundling opportunities. Apple offers various bundles that can include its music, news, tv, and other services, all rolled into one subscription (Meek, 2021).
Though subscription models clearly benefit news sources, what motivates consumers to subscribe?
Readers Want Reliability
The COVID-19 pandemic has increased people’s need for news. One study found that ‘the coronavirus crisis has substantially increased news consumption for mainstream media’. Visits to the BBC news website doubled from January–April of 2020, and weekly TV news consumption rose by 5% across the six countries studied (Newman, 2020, pp. 9–11). However, amid the increased demand for news, trust in news reports fell. Overall trust in news worldwide fell four percent—now at only 38%—from 2019, and from 40% to a mere 28% in the UK (Newman, 2020, p. 14).
The report also surveyed consumers’ motivations for paid news, finding that ‘the most important factor is the distinctiveness and quality of the content’, with subscribers believing ‘they are getting better information than from free sources’ (Newman, 2020, p. 34).
Another benefit of the model is that subscription data gives newspapers the ability to know their readers, allowing for greater understanding and trust.
News companies that strive to understand their audiences are better positioned to offer more relevant, accurate, nuanced, and audience-aware information . . . Subscriptions data can help companies drill deeper into the driving questions about their readerships — and companies can use those insights to boost credibility with current and future readers. — Ali Gordon, ‘Subscriptions Can Protect Media Credibility in Fake News Era’
Conclusion
Subscription models can provide solutions to the challenges of news sources and consumers alike—provided that news publishers give readers what they’re searching for: accuracy and reliability. By building trust with consumers, newspapers can stay on top of digital changes and provide information that’s worth paying for.
Bibliography
Gordon, A. (2020) ‘Subscriptions can protect media credibility in fake news era’, 27 October. Available at: https://www.lineup.com/newsroom/industry-analysis/subscriptions-credibility (Accessed 20 February 2021).
Mayhew, F. (2020) ‘UK national newspaper sales slump by two-thirds in 20 years amid digital disruption’, PressGazette, 26 February. Available at: https://www.pressgazette.co.uk/uk-national-newspaper-sales-slump-by-two-thirds-in-20-years-amid-digital-disruption/ (Accessed 20 February 2021).
Meek, A. (2021) ‘Treat yourself to 6 months of Apple Music and Apple News+ for free’, BGR, 16 February. Available at: https://bgr.com/2021/02/16/apple-music-and-apple-news-plus-free-for-six-months-best-buy-deal/ (Accessed 20 February 2021).
Newman, N. et al. (2020) Reuters institute digital news report 2020. Oxford: Reuters Institute for the Study of Journalism. Available at: https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2020-06/DNR_2020_FINAL.pdf (Downloaded 20 February 2021).
Nikolov, V. (2020) ‘2020 — Year of subscription-based news’, Zephr, 5 March. Available at: https://www.zephr.com/blog/2020-year-of-subscription-based-news (Accessed 20 February 2021).
Ofcom (2020) News consumption in the UK: 2020. Available at: https://www.ofcom.org.uk/__data/assets/pdf_file/0013/201316/news-consumption-2020-report.pdf (Downloaded 20 February 2021).
Tracy, M. (2021) ‘The New York Times tops 7.5 Million subscriptions as ads decline’, The New York Times, 4 February. Available at: https://www.nytimes.com/2021/02/04/business/media/new-york-times-earnings.html (Accessed 20 February 2021).
