Recently, several media outlets have announced the introduction of a paywall, a barrier requiring readers to pay for content that was previously mostly freely accessible. This is the case, for example, with Reuters and CNN. Within the Vox group, the idea is also gaining traction and could affect one of its flagship outlets, The Verge. Even the New York Times, which already puts most of its articles behind a paywall, is tightening its access conditions. While these podcasts were previously available to everyone, now only the most recent episode will be free. For the rest, you'll need to subscribe.
Obviously, this practice is not new and is not limited to major American media outlets, but these recent announcements demonstrate a desire to regain control of their business model in the face of stagnant advertising revenues, a crisis of traffic from social networks, and the voracious appetite of unscrupulous artificial intelligences.
Take control of your funding sources
Facing unstable advertising revenue, media outlets are seeking more sustainable solutions to guarantee their economic independence. In 2023, the advertising market experienced significant fluctuations forcing media companies like CNN to rethink their model to ensure their long-term viability. ». According to Axios, the fact of « sacrificing a few million ad impressions in favor of more reliable subscription revenue could prove economically sound ». A desire to implement more stable revenues that is becoming increasingly pressing for some media outlets in the audiovisual sector. As CJR notes, the average age of CNN's TV subscribers is 67 years old and their numbers are in free fall: « Over the past four years, the number of cable subscribers has dropped by a third, audiences are declining, and this year, for the first time, advertisers are expected to spend more on online video platforms and retail media than on television ». Moreover, the elimination of third-party cookies on browsers like Safari or Chrome could make news websites far less attractive to advertisers as Mark Stenberg points out, journalist at Adweek: « Advertisers continuing to advertise on the web will work with fewer sites, because only media outlets with solid databases they have collected themselves will be able to offer the type of targeting they want ».
Ensure efficient distribution channels that are independent of algorithms
If these paywalls can indeed convert readers into paying subscribers, they also serve as an effective way to collect their contact information, allowing publishers to meet advertisers' needs while also creating a more direct communication channel with their community. As relations between social media platforms and news outlets deteriorate, the latter worry about losing touch with their readers. Meta no longer wants to promote "political" content on its platforms and the owner of X displays undisguised contempt for the press and journalists. Having a direct link with their audience thus becomes essential to preserve a relationship of trust and editorial independence. In short, writing primarily for one's readership rather than to satisfy the demands of platforms indifferent to supporting quality journalism. Last June, before implementing a paywall, CNN had already experimented with a wall prompting some of its readers to enter their email address to continue reading. A method also favored by the editorial team at Alternatives Economiques, betting on a registration wall encouraging its readers to subscribe to their newsletters in order to read their content.
A conversation strategy deemed more
Combat misuse of its content by AI
Independent media outlet 404 Media, which specializes in tech topics, recently introduced a registration wall, requiring readers to provide at least an email address to continue reading. The editorial team cites two reasons: the need for direct email contact with its community, but also the desire to prevent AI from feeding on its content.
For media outlets, this approach is part of a broader strategy aimed at preserving the quality and integrity of their work. But this method is far from foolproof. Perplexity, the company behind an AI-powered search engine of the same name, has been called out repeatedly by some media outlets for using their content without permission, even when it was behind paywalls.
Remove paywalls to prioritize loyalty and traffic
Of course, this practice is far from being universal. Some media outlets are taking a different path by removing the paywalls from their sites, which previously required paid subscriptions, and replacing them with more accessible options for readers. This was the case, for example, with Time and the Chicago Sun Times, preferring to focus on models based on membership and aiming to drive traffic to their sites. Some media outlets also periodically lift their subscription walls to allow readers to discover their content as part of "open house" initiatives, like Télérama and Mediapart. The bet: getting them to experience the content during a dedicated period to convince them to subscribe afterward.
Will readers be able to follow?
When media outlets like Mediapart and Arrêt sur images made the bet of charging internet users for information in the late 2000s, the idea seemed somewhat absurd. At that time, the industry was more inclined to agree that no one would pay for content on the Internet. Since then, practices have obviously changed, Mediapart and Arrêt sur images have maintained this model, and a large portion of media outlets now derive more revenue from digital subscriptions than from print. Nevertheless, the practice is not widely adopted by the French public. If we look at the results of the Digital News Report from the Reuters Institute, which analyzes online news consumption habits, we learn that in France only 11% of the population pays to access digital content. Paywalls are even seen as deterrents for younger generations. A study conducted on people aged between 26 and 30 in Norway, a country where 40% of the population has a newspaper subscription, sheds light on three reasons that explain this reluctance:
- The feeling that information behind a paywall can anyway be found for free elsewhere
- Time-consuming subscription management for readers who feel like they have to juggle multiple media platforms
- A reluctance to invest financially in a single source of information
Results that raise questions about access to information of public interest, the production of which does have a certain cost, for a generation that prefers to seek it elsewhere, even if it means relying on less reliable sources.
Moreover, according to the Digital News Report, people who subscribe to paid news outlets subscribe to just one title on average, or two in some rare countries, including France. With the proliferation of paywalls, two scenarios emerge: either readers will pay for more subscriptions, or they will have to make choices, cancel subscriptions to read something else, which will naturally increase competition between media outlets … or create a need to pool offerings.
A problem that the online platform La Presse Libre had attempted to address by offering a bundle subscription formula. The site nonetheless shut down in 2022. A situation that had caused some difficulties for the editorial team of Arrêt sur images, fully aware of the problem posed by the proliferation of subscription-based models and the need for an effective solution: "We are also fully committed to a project for a subscription platform at preferential rates, shared by independent online news outlets, improving and strengthening the former La Presse Libre platform, and which will provide a concrete answer to this remark, which is very fair, that we hear too often: "We can't afford to subscribe to everything!"".
To go further
- Want to set up a paywall to allow your readers to access your content? We broke down this strategy with Madeleine White.
- A list of paywall examples found across multiple news outlets.
- How to better manage unauthorized sharing of your paywalled content? A few best practices.
