Politiken adjust subscription model, two reasons why

Today, in an article in MediaWatch, Politiken announced that it’s going to adjust its digital subscription. Politiken currently has a metered model with free access to 25 articles per month and two types of subscription: one that costs 44 DKK monthly, and one that costs 66 DKK and also includes membership of the Politiken Plus shopping program.

With the adjustment announced today, the 44 DKK option is closed so that all subscribers must pay 66 DKK per month. Furthermore, the number of free articles will be reduced (even though it remains unclear just how big that reduction will be). The MediaWatch article does not specify when the adjustment will take place.

It’s hardly surprising that Politiken adjusts their digital subscription model this way. There are two reasons for this.

First, the difference between what Politiken and Berlingske, their most comparable competitor online, offer has been quite large. They both use the metered model, but while Politiken would monthly give away 25 article before charging 44 DKK, Berlingske only give free access to 10 articles before charging 79 DKK. The fact that there has been almost as many digital subscribers to Berlingske (who charges more for quantitatively less) indicates that Politiken could actually tweak their subscription model to the organization’s own benefit.

Second, The New York Times did the same. According to people within the organization, Politiken largely based their digital subscription strategy on that of the NYT, and almost exactly one year after the NYT launched their paywall (on April 12, 2012 – it was launched in March, 2011), they downsized the number of free articles from 20 to ten. In short, the strategy was to initially test the market and make the customers used to paying for online news – and then adjust the subscription model to one that would be commercially viable for the news organization. This modus operandi has now been reenacted by Politiken, the difference being that the Danish news organization conducted the adjust only eight months after the initial implementation.

This post was originally published on my (now defunct) other website Paywall Watch.

Softening a hard paywall

Today, Århus Stiftstidende announced that they had softened their hard paywall and switched their digital subscription to the metered model. In the future, users will have access to 10 articles free of charge each month before they are charged 79 DKK. This concrete subscription model is similar to the one used by Berlingske, the main news website of Berlingske Media that also owns Århus Stiftstidende.

That change was already announced last September and is not surprising as the news website has suffered severe traffic losses from the implementation of digital subscription back in November, 2012. Compared to October, 2012, the latest statistics from Danske Medier Research/Gemius (December, 2013) shows

  • a 62.7 percent drop in users (from 78,104 to 29,157),
  • a 71.1 percent drop in visits (from 575,402 to 166,153), and
  • a 72.4 percent drop in page views (from 2,754,062 to 760,804).

With such numbers, it’s hardly surprising that the hard paywall is now softened and replaced by the metered model. The question remains how free access – though limited – to content on the news website will affect traffic statistics.

It’s certainly a question I’ll return to later here on the blog; from a research perspective, Århus Stiftstidende how constitutes a most interesting opportunity for following and measuring in real-time the consequences of adjusting digital subscription.

This post was originally published on my (now defunct) other website Paywall Watch.

New website maps free-to-fee transition

These years, the news industry is in a transition period, moving away from the online business model based on offering news free of charge on their news websites. Instead, different subscription models are introduced across the board – on national as well as regional and local news websites. This transition is of most importance to the news industry as it is of vital economic importance for the news organizations that they manage to generate some sort of revenue from their online presence.

However, the knowledge of the consequences of this transition from free to fee is, at best, limited. There seems to be a lot of gut-feeling and guessing involved in the pricing of online news, and it is hard to pinpoint exactly what constitutes a reasonable number of subscribers. This paradox (between high importance and low knowledge) is at the core of my current research project on the digital business models of the press.

In connection with this project, I’ve now launched a new website called Paywall Watch. It will be a site for mapping and documenting the implementation of digital subscriptions on news websites, and my hope is that it will be a most useful resource for researchers, students, analysts, and practitioners within the news industry. The inspiration for the site is to websites is the online work conducted by Dr. Piet Bakker at his blogs Newspaper Innovation and Newspaper Statistics. On those sites, he continuously, meticulously, and thoroughly maps developments and statistics related to two quite specific areas – free dailies and newspaper readership, respectively. The ambition of Paywall Watch is to do the same, only with subscription models on news websites.

For now, the site will focus on Danish news websites only. It’s a question of resources, really, but hopefully it’ll expand its scope and have an international dimension. There is also a blog section which I expect to use down the line; but for now, my focus is on the mapping and documenting effort.

Paywall Watch is live now on . Enjoy.

Update January 21, 2014: Two of the most important Danish sites with news on media and journalism have articles about Paywall Watch today. Click here for the articles on Journalisten.dk (actually a blog post written by me) and MediaWatch.

Update March 19, 2018: I’ve closed Paywall Watch. Some of the same issues will be covered here on this website in the future. See, for example, my timeline of online subscriptions.