News subscription is a key revenue stream for media organizations, particularly indie publications that don’t rely on advertising or sponsored content. While there is no one-size-fits-all model, the best approach to generating subscriber revenue depends on a publisher’s audience and editorial ambitions. It is also important to understand what motivates consumers to pay for news, and how publishers can convert free readers into paid subscribers. A recent study from the American Press Institute and the AP-NORC Center for Public Affairs Research identifies three distinct types of news subscribers.
Readers who pay for news are typically loyal to a small number of highly curated publications, and may be primarily focused on one topic area. They are also price sensitive and demand value, but they’re more willing to spend money on news that is both relevant and trustworthy. They want the journalism they purchase to be impactful, and are likely to advocate for it.
The good news is that digital news audiences have demonstrated that they’re willing to pay for quality journalism in a world where access to information is increasingly free. However, encouraging audiences to make the switch to a paid news model remains challenging, especially in a climate of declining trust in journalists and increased news avoidance. In addition to a poor perception of newsworthiness, other barriers include a cumbersome registration and payment process, low visibility of subscription offers, lack of habitual use, value perception issues, sign-up friction, and high subscriber churn rates.