News behind paywalls: People reject it, media depend on it in digital shift

[Karah Rucker]

ARE WE SEEING A REVOLUTION TAKE SHAPE IN THE NEWS INDUSTRY?

WITH A MIX OF MIS-TRUST – A DECLINE IN LEGACY TV VIEWERSHIP AND REVENUE –

– ALL IN A WORLD MORE PLUGGED INTO PHONES THAN THE TELEVISION –

NEWS COMPANIES ARE SHIFTING STRATEGY –

TARGETING THE DIGITAL NEWS CONSUMER.

BUT THE NEWS **BUSINESS MODEL – IS STILL FIGURING OUT HOW TO MAKE MONEY –

TRANSITIONING FROM TV ADVERTISING TO ONLINE PAYWALLS.

BUT ARE PEOPLE ACTUALLY SUBSCRIBING?

AND WHERE ARE PEOPLE TURNING IF THEY WANT TO CONSUME NEWS WITHOUT PULLING OUT THEIR WALLET.

ACCORDING TO A NEW SURVEY –

ONLY 12 PERCENT OF VOTERS SAY THEY HAVE PAID TO SUBSCRIBE TO AT LEAST ONE NEWS SOURCE.

DESPITE THIS LOW NUMBER OF PAID SUBSCRIBERS IN THE COUNTRY –

SEVERAL BIG-NAME NEWS OUTLETS ARE TRYING THEIR HAND AT IT –

BANKING ON THAT NUMBER GROWING.

CNN MADE THE SWITCH LAST MONTH –

AFTER A FEW FREE ARTICLES, A USER IS ASKED TO SUBSCRIBE.

{FAST GFX ARTICLE PULL GFX}

IN CNN’S OWN ARTICLE ABOUT THE ANNOUNCEMENT –

THEY WROTE –

“For brands like CNN that make most of their money from cable television, the challenge is clear: to develop new digital revenue streams that can offset declines in legacy TV.”

REUTERS DID THE SAME.

LAST MONTH – ACTIVATING ITS PAYWALL.

SAYING IN ITS ARTICLE –

“This new subscription plan ensures Reuters can expand the reach of its award-winning coverage at an affordable price, while allowing us to further invest in our reporting and products for subscribers.”

THEY JOINED A CROWDED FIELD.

ACCORDING TO A REUTERS INSTITUTE STUDY –

75 PERCENT OF AMERICA’S LEADING NEWSPAPERS AND MAGAZINES ARE BEHIND PAYWALLS.

30 PERCENT OF ALL NEWS SITES USE PAYWALLS.

BUT THAT STUDY ALSO FOUND 80 PERCENT OF AMERICANS ARE UNINTERESTED IN EVER PAYING TO READ THE NEWS.

THE DIGITAL-FIRST MEDIA APPROACH – HAS BEEN COSTLY FOR SOME COMPANIES.

THIS YEAR – THE BBC ANNOUNCED ITS NIXING 500 FULL TIME POSITIONS.

DISNEY’S ABC TV STATIONS LAID OFF 3 PERCENT OF THE NEWS DIVISION.

CNN CUT 3 PERCENT.

THE LA TIMES CUT 20 PERCENT OF ITS NEWSROOM.

THE ASSOCIATED PRESS BEING THE MOST RECENT TO ANNOUNCE AN 8 PERCENT STAFF REDUCTION.

THE AP SAID IN A STATEMENT –

Our customers — both who they are and what they need from us — are changing rapidly. This is why we’ve focused on delivering a digital-first news report. We now need to accelerate on this path. Doing so will require making some difficult changes so we can invest more fully in our future.”

SOME media analysts ARE SUGGESTING THE MOVE TO HAVING CONSUMERS PAY FOR NEWS –

WHILE POLLS SUGGEST PEOPLE AREN’T DOING THAT –

COULD ALSO BE SACRIFICING THE QUALITY OF NEWS PEOPLE ARE CONSUMING IN THEIR SEARCH FOR TRUSTWORTHY AND FREE CONTENT.

POLLSTER AND STRAIGHT ARROW NEWS OPINION CONTRIBUTOR FRANK LUNTZ –

POSTED ON X –

“ONLY 12 PERCENT OF VOTERS PAY FOR NEWS. KEEP THIS IN MIND WHEN YOU’RE WONDERING WHY MISINFORMATION SPREADS SO RAPIDLY, WHILE THE ARTICLES AND POSTS THAT DEBUNK IT CAN’T SEEM TO MAKE A DENT.”

THE ATLANTIC – A LEFT-LEANING NEWS ORGANIZATION – ALSO WROTE ABOUT THE FALL OF CREDIBLE NEWS CONSUMPTION IN A WORLD WHERE NEWS IS LOCKED BEHIND PAYWALLS. 

BUT IT’S PIECE TITLED “DEMOCRACY DIES BEHIND PAYWALLS” –

WAS BEHIND A PAYWALL.

THE FOUNDER OF A NON-PROFIT ORGANIZATION “FIRST DRAFT” THAT FOCUSES ON MISINFORMATION –

TOLD BOSTON’S NPR STATION THAT PEOPLE AREN’T PAYING FOR NEWS –

SAYING THIS BUSINESS MODEL – IS LEADING PEOPLE FURTHER AWAY FROM THE INDUSTRY.  

“When people go and search on google, they’re just not able to open the link at sites that have fact-checked information. 

“There’s now this “like what’s the point, ugh, i know what’s going to happen when i click on that link. So we know that people are turning to one another for information, they’re spending more time on social media platforms where there are other people that will give that information for free, they’re spending more time listening to podcasts, and so they’re relying on these closed sources of people who look like them, sound like them, and gives them information that enforces their world views.”

IF YOU’VE MADE IT THIS FAR IN OUR REPORT DISSECTING A TRANSFORMING MEDIA SPACE – THANK YOU FOR WATCHING OUR STORY.

YOU’LL NOTICE WHEREVER YOU FOUND US – WHETHER IT BE ON OUR WEBSITE OR YOUTUBE –

YOU DIDN’T HAVE TO PAY FOR IT.

WHILE OUR INDUSTRY IS NO DOUBT FACING WOES –

WE LOOK AT IT AS AN OPPORTUNITY.

WE’RE ON A MISSION TO PROVE THERE IS STILL MEANINGFUL JOURNALISM OUT THERE.

MANY OF US HERE AT S-A-N INCLUDING MYSELF LEFT LEGACY NEWS TO TRY AND REACH VIEWERS WHO ARE LEAVING TRADITIONAL NEWS TOO.

DO ME A FAVOR SINCE YOU’VE GOTTEN THIS FAR.

TRY OUT OUR MOBILE NEWS APP – IT’S FREE IN YOUR PHONE’S APP STORE.

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BASED ON UNBIASED, STRAIGHT FACT REPORTING.

THANKS FOR YOUR SUPPORT ON THIS MISSION.

FOR STRAIGHT ARROW NEWS, I’M KARAH RUCKER.