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FACTSHEET – Payment Models for Online News in the US and Europe: 2019 Update

FACTSHEET - Payment Models for Online News in the US and Europe: 2019 Update
[Authors: Felix M. Simon and Lucas Graves]

Contents

Introduction

As a result of the incomes of previous news proceed to fall and the largest digital advertising revenue required by massive know-how corporations, wage fashions have turn into an more and more essential a part of digital information business. Digital advertising stays a key supply of revenue; Based on a report by Newman's (2019) information administrators, 81% of respondents say it is still the essential revenue weight, adopted by subscriptions (78%), home promoting (75%) and different sources of revenue. Nevertheless, subscriptions are a key focus of the news business, as over half (52%) of managers anticipate this to be the important revenue state of affairs in 2019.

In April 2017, RISJ analyzes the adoption of three dominant types of wage models – freemium, measured rewards and onerous rewards – in main news organizations in six European nations. on the market: Finland, France, Germany, Italy, Poland and the United Kingdom (Cornia et al. 2017). This text incorporates an update to the unique evaluation, based mostly on the similar news businesses, to know how the panorama has advanced over the previous two years. We are additionally expanding the unique sample by incorporating knowledge from the United States for 2017 and 2019, given its significance for each the early testing website for payrolls and the most essential media market.

Common Findings and Differences by Business [19659002] The analysis introduced here is predicated on the research of online presents from over 200 administration news organizations in seven markets. (See detailed strategies and sample at the finish of this knowledge sheet.) As in 2017, we collected knowledge from four broad teams of web sites: day by day newspapers (up-market, tabloid / mid-market, enterprise and region), weekly newspapers and newsletters, TV news (business and public media) and digital birthdays. We organized pay fashions in three classes: onerous beams, the place no content is obtainable for free. 'Freemium' models consisting of a mixture of free and premium content material; and measured beams that permit entry to a restricted variety of free articles each month

Based mostly on a assessment of the main news organizations 212 in these seven nations,

  • 69% of our newspapers at present have a somewhat wage model, barely growing from 64.5% in 2017. Onerous beams are extremely uncommon, and the landscape is evenly divided into freemium models and measured rewards (33% every).
  • weekly newspapers and magazines (52%) use a wage model that has fallen by 10 proportion points since 2017. Freemium models are mostly used and are followed by measured rewards and exhausting premiums.
  • Free access to digital information by all broadcasters in 2019. This consists of personal sector broadcasters and public media similar to BBC in the UK or Yle in Finland
  • Virtually all digitally generated news (94%) in seven nations supply free access to information. French Mediapart and United Kingdom Unbiased corporations are the solely digital born / digital organizations in our pattern that use paywall, as much as one since 2017.
  • The lowest monthly worth (with out discounts) in 2019 is € 14.09 (€ 12.21) , which is roughly the similar as in 2017. Costs vary from simply € 2 (€ 1.74) to € 41.50 (£ 36) per 30 days. By comparability, the common worth of the Netflix subscription in totally different nations is € 7.77 (€ 6.73). (See Desk 1.)

Subsequently, we discover that the development observed two years in the past continues in 2019, and European and US newspapers are progressively shifting away from digital information which might be provided freed from charge and primarily supported by exhibition promoting. Some corners of the business have modified quicker: in our sample of regional newspapers, simply over 1 / 4 (27%) now supply free access to readers, dropping sharply from 36% in 2017. This modification is in line with other research (Cornia et al. Newspapers and newsletters produce a wider range of income sources – not simply totally different pay models, but in addition unique advertising, e-commerce, events, and so forth.

Determine 1. Payment models in media varieties (all nations)

Nevertheless, this variation isn’t reflected elsewhere in business. All in all, greater than half of our samples from information businesses – 53% of the 212 workplaces in seven nations – still present free access to digital information. This consists of digital media (94%), most tabloid newspapers (73%) and all personal sector broadcasters and the public media. (See Figures 1 and 2 to four for more info.) The continued dominance of free entry to digitally-generated retailers is particularly noteworthy provided that business is paying attention to some organizations which might be building their enterprise paying members, similar to the French Mediaparte, or (our pattern outdoors) De Correspondent in the Netherlands and the United States and Republik.ch in Switzerland (Nicholls et al. 2016).

Earth variations

Six European nations we cover characterize a variety of media techniques, including nations with a robust personal sector and public media, in addition to nations with traditionally weaker personal sector media and less-funded and publicly out there public media. the media. The European market additionally differs from the measurement of the general market, the degree of promoting costs and direct competitors from worldwide content material. At the similar time, the United States is by far the largest media market in the sample, characterized by a robust, highly competitive personal sector and relatively weak public media

Comparison of outcomes in Finland, France, Germany, Italy, Poland, UK The UK and the United States discover fascinating differences (see Determine 2) and Tables four and 5):

  • Most of the newspaper and information publishers in Finland, France, Germany, Poland and the United States have accepted pay
  • . These are highly aggressive markets the place even leading titles may be afraid of dropping market share in the event that they implement wage fashions.
  • Monthly prices differ dramatically in totally different titles and nations (see Determine 2). Particularly in relation to newspapers and weekends, Poland has the lowest average month-to-month worth of € 9.27 (€ eight.04). The UK has the lowest proportion of newspapers and weekly payrolls (33%), but the highest common month-to-month worth is € 17.45 (€ 15.12), and is prime of € 41.50 (£ 36) for the Monetary Occasions.
  • Prices differ by mannequin. The averages are € 15.46 (€ 13.40) for all nations, ranging from € 10.95 in the US to € 19.75 in Germany. On common, the Freemium fashions value € 11.84 (€ 10.26), the UK € 8.10 (€ 7.02) and € 14.49 (€ 12.56) in France. Costs for content with arduous paywall sites range the most, average costs in Poland are € 8.48 (€ 7.35) per 30 days and in the UK € 35.83 (GBP 31.06).
  • Costs also range from market orientation to clear variations between corporations, markets, regional and tabloids. Enterprise newspapers are surprisingly expensive, and the common month-to-month worth for seven nations is € 28.32 (£ 24.55). They are additionally the only class that persistently used wage fashions in both 2017 and 2019.
  • Lastly, US payments have risen extra strongly than the EU. Roughly 48% of US retailers in our samples are charged at 38% in 2017, an increase of 10 proportion points in just two years. This improve is due solely to newspapers, 76% of which have a wage model in 2019, a rise of 16 proportion points since 2017. During the similar interval, the measurement of the media from the EU nations has remained virtually flat, rising just one proportion point to 46% in 2019.

Picture 2. Average month-to-month worth in totally different nations (newspapers and weekly newspapers and newsletters with a cost mannequin)

As in the unique report, we found that the content material providers provided differ as a lot as the pay models and costs. For example, many Finnish newspapers use a hybrid paywall (a mixture of a monthly page view and some premium content). America is dominated by measured paywall solutions (see also Steffens 2018). Though there are plenty of freemium fashions in Poland and are present throughout Europe, we didn’t find any examples of our sample in the United States. Some news organizations solely embrace access to their news on the web site at a minimum worth, whereas others choose to charge extra and also present other providers (eg, a digital version of a printed newspaper, cellular purposes for subscribers, archiving, newsletters). It also needs to be noted that free entry businesses might in some instances request different forms of compensation. For example, the UK The Guardian and the German die Tageszeitung (taz) supply readers the opportunity to donate and turn into volunteers.

2018 has been troublesome in many ways for previous media corporations, particularly newspapers; print revenue has fallen further when digital can’t pay the difference. On this environment, we see a strategic division: since many publishers (especially in complicated and fragmented markets) supply online information for free, a large a part of the business is making an attempt to reform its pay models and membership and donation fashions. (Newman et al. 2018). In line with a report by Newman's (2019) news directors, becoming a member of and membership are a key focus of the information business. More than half (52%) anticipate this to be the primary revenue state of affairs in 2019, while solely 27% for exhibition advertising, eight% for native advertising and 7% for donations.

Current research give purpose to be cautious optimistic. strategy. In accordance with the Digital News Report 2018, the variety of individuals paying for news is growing slowly and the probability of paying between nations has increased amongst those that haven’t but paid (Newman et al. 2018). Nevertheless, in most instances, this progress continues to be growing and reader prices, regardless that they’re growing, not often substitute outdated previous revenue and the more and more troublesome digital promoting market. This view has not modified considerably since our newest knowledge web page in 2017.

All in all, we will draw the following conclusions:

  • Paywalls are more likely to be right here. The development noticed two years ago continues in 2019, and newspapers and newsletters throughout Europe and the United States are shifting away from the digital news that is provided for free. Nevertheless, the progress in the US has clearly increased to the progress of the EU
  • Nevertheless, the fears that limit access to quality info – and all the implications for democracy – now seem unexpectedly. Exhausting beams are extraordinarily uncommon, even amongst newspapers, and most retailers (53%) are nonetheless free for users.
  • Wage models will not be evenly distributed across nations, but are linked to the individual circumstances of each market. All in all, freemium and measured approaches are dominant, and hardly any minority is used for exhausting premiums. Nevertheless, there are not any freemium fashions in the United States.
  • Most digitally generated retailers (94%) supply free access to customers. Since this state has just lately been disturbed, there’s nonetheless an open query of how lengthy this development will proceed and whether these modifications will lead to wage patterns over the next few years
  • Among the newspapers, regional sales retailers have been extra enthusiastic

As this overview exhibits, more and extra information businesses in Europe and the United States challenge the assumption that folks don’t pay for digital information. And encouragingly, studies recommend that some individuals in totally different age groups, including youthful media users, are prepared to pay for excessive-high quality content and online providers that they find worthwhile and useful (Fletcher and Nielsen 2016, Newman 2018). The problem for news organizations now’s to offer such top quality content and providers, to develop merchandise that provide the consumer expertise and convenience that folks have been expecting from digital media, and to sell their bids to those that usually are not at present paying

Tables

Desk 1. common prices (all retailers, all nations)

2019

Free admission

Freemium (€) [19659041] Measuring charge (€)

Onerous paywall (€)

Average monthly worth (€)

] Netflix primary subscription worth (€)

N

Finland

n / a

] 13.89

18.77

n / a

16.14

, 99

22

France

n / a

14.49

16.25

11.00

14.91

7.99

30

Germany

n / a

13.46

19.75

n / a

14.51

7, 99

31

Italy [1 9659047] n / a

11.66

18.62

n / a

14.45

7.99

30 [19659052] Poland

n / a

9.41

12.42 [19659050] eight.48

9.27

7.49

29

UK

n / a

eight.10

11.47

35.83

17.45

6.90

28 [19659054] US

n / a

n / a

10.95

34.70

11.93

8.04

42

Complete

n / a

11.84 [19659105] 11.84 [19659105] 15,46

22,50

14,09

7,77

212

Word: In the case of a mixture of a measured model and prime-of-the-line content, we encode the supply as a "measured paywall". Foreign money Rates and Netflix Charges on April 23, 2019.

Desk 2. Free entry to the outlet

2017 (N)

2017 (%)

2019 (N)

2019 (%)

Complete (N)

Complete (N)

-market

10

35.71

10

35.71

28

Tabloid / mid-market Newspaper

7

63,64

8

eight

eight

eight

[11]

Business newspaper

zero

0

zero

]

0

9

Regional newspaper

27

36,49

20

20

20

74

Weekly Newspapers and Newspapers

]

38.10

10

47.62

21

TV

31

100

100

31

100

100

31

100

31

31

Digital Born

38

97.43

35

94.59

37 *

Word: * 39 Outputs in 2017 Model and Prime Content , we code the supply as a "measured paywall". Differences in 100% media varieties are on account of rounding.

Table three. Distribution of wage patterns (all retailers, all nations)

2019

N

%

Complete

212

100

Free access

53.30

Freemium

49

23.11

Measuring reward

44

20.75

Onerous paywall

6

2.eight 19659179]

46. . Variations in 100% media varieties are as a consequence of rounding.

Table four. Payment Models for Totally different Media Varieties (All Nations)

2019

Free Entry (%)

Freemium (%)

Measuring Payment (%)

Onerous paywall (%)

Arduous paywall (%)

Newspapers

30.65

33.06

33.06

3.23

Weekly newspapers and newsletters

47,62

33 , 33

14.29

four.76

TV [19659170] 100

zero

zero

zero

Digital born

94.44

2 78

zero

2.78

Complete

53.30

23.11 [19659176] 20.75

2.83

Observe: In the case of a measured model and a mixture of prime-high quality content, we code the supply as a "measured paywall". Differences in 100% media varieties are as a consequence of rounding.

Table 5. Payment Models in Totally different Nations (Newspapers and Weekly References Only)

2019

Free (%)

Freemium (%)

Measuring Payment (%)

Arduous paywall (%)

Onerous paywall (%)

Average Month-to-month Value (€)

Netflix Subscription Worth (€)

N

Finland

13.40

46.70

40.00

0 [1965936] 0

16.14 [1965936]] 7.99

15

France

4.76

61.90

15.11

7.99

21

Germany

42.86

47.62

9.52

zero

0

14 , 51

7.99

21

Italy 50.00

30.00

20.00

zero

14.45

7.99

20

Poland

23.80

52.38

14.28

9.52

9.27

7.49

21 ] UK

66.67 [19659171] 5.56

16.70

11.20

17.45

6.90

18

US

32.03 [19659173] 0

65.51

three.45

11.93

8.04

29

33.10

33.10

30.34

three.45

14.12

7.77

145

2017

Free entry (%)

Freemium (%)

Measuring charge (%)

Onerous paywall (%)

Common Month-to-month Value (€) [19659229] Netflix Subscription Worth (€)

N

Finland

13.40

46.70

40.00

0

15.03

n / a

15 France

4.76

66.70

28.60

0

13.97 [19659232]

21

47.62

38.09

14.28

zero

17.64

n / a

21

Italy

60.00

30.00

10.00

]

14.24

n / a

20 [19659054] Poland

9.52

71.43

9.52

9.52

7 , 21

n / a

21

UK

66.70

5.60

16.70

11.10

22.26

22.26

n

44.80

zero

48.28

three.45

10.60

n / a

29

] Complete

35.86

35.12

25.51

3.45

14.42

n / a

145

NB. combined with the measured mannequin and prime-of-the-line content material, we code the supply as a "measured paywall". Complete can deviate from rounding by 100%. Change Charges 23 April 2019 and 22 September 2017

Technique and Sample

In complete, we analyzed the 212 information organizations of this research, 170 in Europe and 42 in the United States. 170 European information organizations have been first sampled in 2017 (Cornia et al. 2017) and have been held for comparison in 2019. Our 2017 surveys have been chosen for each European nation:

  • 15 national and regional newspapers with the largest print enterprise nationwide official sources
  • Up to three weekly newspapers or newsletters per country based mostly on their print or nationwide sources or Digital News Report 2016 (Newman et al. 2016)
  • Up to five broadcasters – public service and business – based mostly on their achievements in line with TV information from national official sources or In response to the 2016 Digital News Report (ibid.)
  • 5 Digitally Created News Sites (Home and / or International) Broadly Coated by the Largest Dimension Every Nation Based mostly on Comscore Knowledge Will get In January a 2017.

Because the nationwide media market differs significantly from one country to a different, the sample shouldn’t be utterly symmetrical. With a purpose to avoid leaving individually essential websites that are not included in the complete sampling, we strategically added up to 4 new news businesses in each country – from digitally generated media akin to Media Get together from France, to nationwide newspapers resembling Die Welt or die Tageszeitung (taz) in Germany – which we knew beforehand – an essential part of the basic media space and symbolize essential examples of digital journalism, even when they weren’t selected alone.

Research by Colombian Journalism Evaluate in September 2017 (Stulberg 2017). The original CJR pattern is predicated on an inventory of all US every day newspapers with a circulation of over 100,00zero. So as to match the CJR's sample with our technique, we added:

  • Six digital retailers with the highest availability based mostly on Comscore knowledge (multi-platform) in September 2017,
  • Six broadcasters – public service and business – in response to how television information was achieved in response to the Digital News Report 2018 (Newman et al. 2018),
  • Four weekly newspapers or newsletters based mostly on the Digital News report 2018 (ibid.)

, however omitting several smaller information organizations, including many native and regional. Each nation has coded 22-42 most necessary news organizations. If you need to encode websites, we visited each website. If the website had paywall, we observed the sort of cost service and the monthly value of the digital subscription without discounts. For every website, we determined, by testing, whether or not the website measured paywall. The info was collected between 25 March and 22 April 2019, and the second spherical of random sampling was 29 April 2019. It subsequently represents a snapshot of quickly creating markets. Foreign money change rates are on April 23, 2016 and September 22, 2017. The add-on accommodates an entire listing of organizations in our sample and extra detailed details about each title.

References

Cornia, A., Sehl, A., Simon, FM, Nielsen, RK 2017. European News. Oxford: The Reuters Institute for Journalism Analysis

Cornia, A., Sehl, A., Nielsen, R.Okay. 2016. Personal Media and Digital News. Oxford: The Reuters Institute for Journalism Research

Fletcher, R., Nielsen, RK 2017. "Paying for Online News", Digital Journalism, 5 (9), 1173-1191.

Newman, N. 2019 Journalism, Media and Know-how Tendencies and Forecasts 2019. Oxford: Reuters Institute for Journalism Research

Newman, N., Fletcher, R., Kalogeropoulos, A., Levy, DA, Nielsen, RK 2018. Digital News Report 2018. Oxford: Reuters Institute for Journalism Research

Newman, N., Fletcher, R., Levy, DA, Nielsen, RK 2016. Digital News Report 2016. Oxford: Reuters Analysis Institute

Nicholls , T., Shabbir, N., Nielsen, RK 2016. Digital-Born News Media in Europe. Oxford: Reuters Institute for Journalism Research

Schröder, J. 2017. ”Die Große Auflagen-Analyze der Regionalzeitungen: die 78 größten Titel auf einen Blick, Media, January 23, https://meedia.de / 2017 / 01/23 / die-grosse-auflagen-analysis-der-regionalzeitungen-78-Groessten-titel-auf-ein-Blick /

Steffens, B. 2018. ”The brand new research exhibits that strict metrics have gained the wage model conflict for information sites ”, RJI, February 16, https://www.rjionline.org/stories/new-research-indicate-tight-meters-have-won-the-pay-model-war-for -news-net

Stuhlberg, A. 2017. & # 39; age-free content is the king of newspaper websites, Columbia Journalism Evaluate, September 22, https://www.cjr.org/united_states_project/newspaper-paywalls .php [19659005] TheMediaBriefing. 2017. “Key Leads
on Europe's Successful Content Content Strategy Report”, TheMediaBriefing, January 26, https: //www.themedia
news.com/evaluation/key-takeaways-fr–europes- Content material Methods Report /

Zubayr, C., Gerhard, H. 2016. ”Tendenzen im Zuschauerverhalten. Fernsehgewohnheiten und Fernsehreichweite im Jahr 2015, Media Perspectives 3, 142-155.

Thanks

We are grateful for the steerage, suggestions and help of our colleagues at the Reuters Institute, which was provided all through the preparation means of this report. together with Director Rasmus Kleis Nielsen, Nic Newman, and Alex Reid, Government Group Member.

Revealed by Reuters Journalism Research Group with the help of Google News.

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