Trends in Digital Media Industry

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The trends and evolution of monetization strategies in the world of news publication and digital media. We looked at several early adopters in this space and how they adapted to the market situation. Most importantly we have tried to look at some of the evolving needs and trends in this space that will help you understand what lies ahead.

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Trends in Digital Media Industry

  1. 1. Trends in Digital Media Industry
  2. 2. Newspaper Industry Gradually moving to Paywalls450 of the 1,380 daily papershave or are in the process ofadopting pay plans – PewResearch Center*• Source : http://www.usnews.com/news/articles/2013/04/09/pay-walls-could-be-prints-salvation-online• Image Source: WSJ Website
  3. 3. Are paywalls are a recent trend?THINK Again…WSJ DID IT in 1997!Paywall & Pricing Experiments• Image Source: WSJ Website
  4. 4. Early Adopters of PaywallCurrent Status (March2013)“Metered digital subscriptionmodel,” First 20 articles ormultimedia features on the site arefree. Anyone who wants to readmore will have tosubscribe, although access to thehome page of the site, or to linksdiscovered through socialmedia, will remain free*http://online.wsj.com/article/SB10001424127887323415304578368682003629320.html$50/yearfor accessto WSJ.comJanuary1997> 200,000onlinesubscribersApril1998Celebratesits millionthonlinesubscriberMay20072001•Started charging forcontent2007•Adopted a "meteredmodel" with 10 freearticles without registering2010•Dropped Free access. Freeaccess available after registeringon a metered monthly basisWall Street JournalFinancial Timeshttp://theweek.com/article/index/205465/the-medias-risky-paywall-experiment-a-timeline/
  5. 5. The curious case of Financial TimesSuperior content quality offered at a muchhigher subscription package!"We would see the sort of articlesthey were reading & the frequencythey were reading those articlesand began to map those”-John Ridding, CEO, Financial Times• Avg daily readership, only alittle less than WSJ2.1 m• More expensive than WSJ’ssubscription model25%• Registrants enter their e-mail, zip code, industry, jobresponsibility & position level5m
  6. 6. Popularity of Soft Paywall - Metered ModelFREE10 articles/month$154 week websitesubscription March 2011136%DigitalCirculationsQ1-Q2 2012 –NYT BLOG* Image Source: New York Times site
  7. 7. Group SubscriptionApplicable for organizations with more than 50 employees“All access” digital subscriptions across tablets and smartphonesRates determined by the number of individuals an organization adds* Image Source: New York Times site*
  8. 8. Economist Decoy Pricing ExperimentDecoy packagePrint subscription price = Print &web subscription = $125Led to people reading print contentand accessing web content for theinteractive mediaHelped get ad revenues from bothprint and web channelsSource: http://conversionxl.com/pricing-experiments-you-might-not-know-but-can-learn-from/
  9. 9. Popularity of Soft Paywall - Metered Model*Source: http://www.ft.com/cms/s/0/b5897574-95eb-11e0-ba20-00144feab49a.html#ixzz2PrqvHvjFLogos used from the Website of the newspapersMonthly Unique Visitors
  10. 10. Combining HARD & SOFT paywallHave two versions of the samearticle – one free and one paidThis change should be seen as "twodifferent sites for two different kinds ofreader – some understand [that]journalism needs to be funded and paidfor. Other people just wont pay. Wehave a site for them.“ - Boston Globeeditor Martin Baron* Audit Bureau of Circulations http://www.bostonglobe.com/business/2012/10/30/the-boston-globe-circulation-rises-nearly-percent-herald-falls-nearly-percent/OSqacPxh1L0kQycUnBP1oM/story.htmlBostonGlobe 2011Boston GlobePremium in depthcontentBoston.comBreaking news, BriefsIn Daily Circulation 1st timesince 2004 during 6-month periodending Sep 2012*
  11. 11. Implication for Niche playersSource: www.davidlafontaine.com/case-studies/final-pdf-paid-content.pdfNiche Sites With Paywall• Narrowly Defined, High –Value, Exclusive Content• Intensely Interested Target AudienceWilling Paying Customers
  12. 12. Who do you think did well in Subscription Arena -Smaller Niche Players or the Larger General Interest Magazines?-2.10%2.20%1.10%3%0.60%-3.50%TheAtlanticThe Week The NewYorkerTheEconomistTime NewsweekPercentage Change of Subscriptions Circulations 2010-11Smaller Niche PlayersLarger General Interest Magazines• The smaller publications did betterthan the traditional market leaders inselling base subscriptions• The Economist enjoyed the highestannual gain, at 3%Source: Audit Bureau of Circulations, FAS-FAX report for consumer MagazinesPEW Research Center’s Project for Excellence in Journalism 2012 State of News Media
  13. 13. But Paywalls are not a Universal Success$19.95*annualsubscription fee19961.4l*number ofmonthly readers1998SluggishGrowthDropspaywall19991998• $25 annual subscriptionfee2001• $30 annual fee for‘Salon premium’with no ads2002• Non-paying readerscan access articlesafter a commercial2009• Abandons itssubscription modelSalonMicrosoft’s Slate
  14. 14. $4.95*onlinesubscription/ month200397%- Drop inreadership- Paywalldropped2005The Los Angeles Times$260*annualsubscription fee200935*subscriber base2010Offerspackagebasedsubscriptionmodel2013Long Island-based newspaper NewsdaySource: http://theweek.com/article/index/205465/the-medias-risky-paywall-experiment-a-timeline/http://observer.com/2010/01/after-three-months-only-35-subscriptions-for-inewsdayis-web-site/http://data.newsday.com/services/onlineaccess/
  15. 15. New York Times ends Times Selectsubscription service in Sep 200740% jump in site traffic after the pay wallcame down – NielsenSolution: Free access to some articles +access to the first few paragraphs of paidarticles30% of traffic to newspaper Web sites comes from search engines -NAAGoogle ‘s "first click free" (running since 2008)allows users to find and read articles behind a paywallThe readers first click to the content is free, and thenumber after that would be set by the contentproviderAll contentbehind paywallExclusion fromsearch resultsReduces Trafficto website
  16. 16. Disrupters to watch out for…News Aggregators & News blogs:One-stop Content channelsGooglenewsSocial MagazinesZitePulseLivestandFlipboardNEWSAGGREGATOSTheHuffingtonPost28m*page views/ day11m*avg uniquevisitors/month30m*avginstallations/monthNEWSBLOGS46m*avg uniquevisitors/monthMashable20m*avg uniquevisitors/monthReddit
  17. 17. Articles onentrepreneurship, biology, finance, anthropology, political science & literatureThe best things from traditionalpublishing combined with the bestparts from InternetPublish Articles by ExpertsQuality material on blogging, webdevelopment, design & technologyAuthors can make money & gainpopularity by writing/reviewingarticlesCrowd sourcing-Pay per article published
  18. 18. http://www.chargebee.comSubscription Billing. Simplified.Reserve your free sandbox today!

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