When many readers shift from printed to digital content, publishing industry is faced with a challenge to innovate how to reach consumers. Now, even with subscription billing solutions in place, there is a dilemma - how can publishers maximize subscriber revenue with practices that also increase customer acquisition rates? Learn about how publishers can reach wider consumers beyond subscription billing.

1. 1
Reaching
Consumers
Beyond
Subscription Billing
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2. 2
Reaching Consumers Beyond Subscription Billing
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The publishing industry has long recognized the need for innovative ways of reaching
consumers. When readers shifted from printed to digital content, publishers faced the
challenge of monetizing this new landscape. Some try to subsist solely on ads while
others use subscription billing practices to provide consistent revenue. Often, businesses
employing the latter method establish a paywall on their websites that prevents or limits
access to nonsubscribers.
This presents a challenge as these organizations essentially cut off a large portion of
potential readers. Those that completely restrict access to nonsubscribers ask new
customers to take a huge gamble. These users are required sign up before experiencing
the content in question, and they have no idea if what they'll receive provides enough
value for the monthly cost.
Even with a healthy number of subscribers, a strict paywall method does poorly for many
publications. Despite industry belief that its subscription revenue and coverage of
financial news would protect it, the Financial Times is taking some extreme cost-saving
measures, Fortune reported. Current job openings will be placed on hold, part-time staff
members won't be hired as frequently, travel and entertainment costs will be slashed and
the entire print edition will be streamlined. Yet in 2013, the newspaper was one of the first
to receive over half its revenue from digital subscriptions and other offers. To see how the
Financial Times fell from a leader to its position today, one must understand that print
advertising is far more profitable than digital.

3. 3© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Essentially, advertisers act in line with the belief that the print industry is dying and digital
will take its place. They're flocking to the cheaper online media, leaving print editions of
publications struggling to replace the revenue they once had. Therefore, even though the
Financial Times has a large number of digital subscribers, it still struggles from a
shrinking number of traditional ads.
Still, as Fortune acknowledged, having a healthy amount of subscribers is definitely a
benefit. The question now becomes one of whether or not the Financial Times can
acquire enough new subscribers to compensate for the loss of print advertising.
"How can publishers
maximize subscriber
revenue and
increase customer
acquisition rates?"
Reaching nonsubscribers
The dilemma in such cases is simple to grasp: How can
publishers maximize subscriber revenue with practices that
also increase customer acquisition rates? Some
organizations offer a select few free articles, but The
Sunday Times has a different answer. According to
DigiDay, the publishing company is attempting to reach –
and eventually convert – new audiences beyond its current
readers on platforms other than its website.
"There are ways of speaking through the paywall to beckon readers to our content,"
Eleanor Mills, The Sunday Times' editorial director, said to DigiDay. "We're trying
different kinds of approaches to get more of a digital audience."

4. 4© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The Sunday Times attempts to increase its followers on social media and through its
other brands. The food print supplement Dish is a favorite among millennials, Mills said,
and the publisher is launching a separate travel site as well. Interestingly, The Sunday
Times is also publishing content on separate media sites like Apple News. In addition,
subscribers can share articles with their friends through Facebook and Twitter, enabling
those without a subscription to read the articles.
"Our readers are our best advocates," the publication's head of digital Alan Hunter told
DigiDay.
Hunter believes The Sunday Times' current readers are a key link to acquiring new
subscribers. He admitted convincing consumers to switch from one free article to paying
a subscription fee for unlimited access is a long journey.
"We, like others, are constantly looking to find the pieces of the jigsaw and how to
optimize it," he further explained to DigiDay.
Customer acquisition on their terms
The Sunday Times uses an important concept that can help businesses on a recurring
billing model succeed in increasing their subscribers. Instead of fighting against readers
– both current and future – it is working with them by providing access to trial content on
their terms. Letting current customers share content through social media is a great way
to reach new readers in an environment they are comfortable with.

5. 5© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
"Listening to
customer wants is
essential for
retention.“
The Sunday Times also did something essential for retaining
current customers: It listened to what they wanted. As Hunter
noted, satisfying current customers is a great way to get them
to mention the publication to friends and family. Subscribers to
The Sunday Times asked the publisher to allow them to share
articles on social media, and the company complied.
Other businesses should try a similar approach to acquire and retain customers. Their
satisfaction is important to success using a subscription billing model.
While The Sunday Times understands the current struggles of the publishing industry, it
also knows it needs to take action to remain relevant and keep readership levels. The
publication is approaching new readers on their terms, which is key to obtaining new
subscribers.

6. 6© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.