The subscription business model has been touted as the saviour of digital news media, a way to financially sustain journalism in the face of declining ad revenues and increasing competition. However, recent years have seen a growing number of media companies struggle to meet their subscriber goals and retain their audience, leading to questions about the viability of this model.
Source:https://www.mobuppsblog.com/paid-subscriptions/
One of the biggest challenges of the subscription business model is acquiring and retaining subscribers. This requires media companies to offer compelling content that distinguishes them from the free news sources available online. However, as the number of media companies adopting the subscription model has grown, so has the difficulty of standing out in an increasingly crowded market. This has led many media companies to resort to clickbait headlines, sensationalist reporting, and other tactics that undermine the credibility of journalism.
Moreover, the subscription business model can also have a negative impact on the diversity of news and perspectives available to the public. As media companies compete for subscribers, they may prioritise popular, mass-appealing content over more niche or specialised reporting, limiting the range of perspectives and experiences that are represented in the media. Additionally, the focus on subscriber acquisition can lead to sensationalist reporting as media companies attempt to capture the attention of as many people as possible.
The subscription business model has been promoted as a solution to digital news media's financial challenges, in a constrained and volatile market. It has also created new challenges that threaten the viability of the model. Certain changes can be made to make the subscription business model work for digital newspapers.
In summary, the subscription model has the potential to be an additional business model and revenue stream for the news media groups. Focus needs to be placed on the overall digital strategy and business objectives. Publishers can’t ignore the potential and function of data and how it helps to drive loyalty, relationships, conversions and revenue. It is the marriage of the publisher as the data keeper and the right technical tool at the right time that can enable a successful subscription model.
About Evolok
Evolok helps online publishers increase their revenues and drive audience engagement using Evolok’s end-to-end SaaS solution, which provides paywalls, subscription management, user segmentation and identity management. Evolok delivers a selective ecosystem to drive user engagement and mobilization. Evolok helps its clients increase readership and revenue by engaging and personalizing content, protecting valuable content through paywalls, utilizing login and social data to incrementally know customers and finally targeting products and pricing to boost subscriptions.
If you need any help with your subscription journey or you are thinking of migrating your publishing business to the subscription business model contact us today.