Newspaper Subscriptions are on the Rise

So much for the death of the newspaper industry.

A recent Nielsen Scarborough study found that more than 169 million US adults now read newspapers every month, in print, online or mobile. That’s almost 70 percent of the population.   

The New York Times picked up 130,000 new subscribers last November, 10 times their average monthly growth rate.

Subscriptions at The Wall Street Journal spiked 300 percent, the LA Times went up 61 percent and Vanity Fair picked up 13,000 new subscriptions in one day. The now-profitable Washington Post is hiring 60 new writers. NPR recently said that “Big Newspapers Are Booming.”

Sure, those papers can thank the incoming president for some of their new business, but this isn’t just a political story. All sorts of reader-supported publishers are enjoying a resurgence.

In the technology industry, for example, Jessica Lessin’s sharp, pointed (and subscription-only) The Information now has the second largest team of tech reporters in Silicon Valley. Ben Thompson has several thousand readers who are happy to pay him $100 a year for his excellent Stratechery newsletter.

Why are readers and publishers alike embracing paid subscriptions for content services over ad-based business models? There are several reasons, but the dismal state of online advertising is a big one.

People hate ads. More than 80 million Americans will use ad blockers this year, costing digital media companies around $10 billion in revenue. And despite all the media industry talk about relevant “native advertising,” most of us are still drowning in pop-ups.

It says a lot about advertising that many publishers are pitching its complete absence as a way of incentivising paid subscriptions. Even Google is doing it, take a look at YouTube Red. Ads have all sorts of other insidious effects, like turning content providers into clickbait factories. Ex-Politico president Jim VandeHei calls it the “crap trap.”

Given that ads are terrible, and that ad revenue is notoriously inconsistent, what else is going on?

Ev Williams recently touched on this when he announced the staff shakeup at Medium: “We had started scaling up the teams to sell and support products that were, at best, incremental improvements on the ad-driven publishing model, not the transformative model we were aiming for.

“To continue on this trajectory put us at risk , even if we were successful, business-wise, of becoming an extension of a broken system.”

Not surprisingly, Ev recently announced that Medium will be launching a consumer subscription product this summer.

Given that ads are terrible, and that ad revenue is notoriously inconsistent, what else is going on?

At the same time that publishers are giving the broken ad system a hard look, there’s a whole new generation of consumers who are comfortable subscribing for services, Spotify, Netflix, food boxes, productivity apps, as long as they stay timely, relevant and focused. A quarter of millennials now read newspapers on a regular basis.

“The number of people with access to the Internet is huge and lots of niches are underserved right now because they’re not broad enough for advertisers to care about,” says Ben Thompson.

All successful subscription services, from Adobe to Dollar Shave Club to the Weekly Standard, can take advantage of predictable recurring revenue to stay razor-focused on their audiences, create distinctive new features (The New York Times now has a sizeable revenue stream just from its crossword app) and avoid the commodification crap trap.

As Jessica Lessin says: “I still believe it’s much safer to build a business that doesn’t need any advertising to survive. Doing so forces you to focus 100% on your value to your readers. It’s the only way to make sure that what the news publishers deliver to readers in the future is smarter, more informed and more relevant than in the past.”

Sure, advertising is never going to go away, but as subscription services become the norm, readers and publishers alike are starting to appreciate the dividends of a direct consumer relationship. The behavioral insight that comes with membership plans and paywalls helps newspapers move away from empty calories like slideshow page views toward more valuable engagement metrics like time spent.

“Making advertising a secondary, though still vital, revenue source is the most important strategic goal for most news publishers,” says Ken Doctor of Newsonomics. “Reader revenue, if backed by sufficient high-quality content and good digital products, proves far more stable than advertising.”

Of course, the newspaper industry still faces headwinds as it shifts from a print ad model to one largely driven by digital subscriptions, but today’s consumers are increasingly comfortable with supporting smart services of all kinds. And that’s good news for a healthy, independent press.

TechCrunch:

 

« App To Alert Of Terrorist Attacks
US Has A Secret Cyberwar Going Against North Korea »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

Resecurity, Inc.

Resecurity, Inc.

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Jooble

Jooble

Jooble is a job search aggregator operating in 71 countries worldwide. We simplify the job search process by displaying active job ads from major job boards and career sites across the internet.

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

Watch this webinar to hear security experts from Amazon Web Services (AWS) and SANS break down the myths and realities of what an NGFW is, how to use one, and what it can do for your security posture.

Maureen Data Systems (MDS)

Maureen Data Systems (MDS)

Our mission at Maureen Data Systems is to digitally transform business environments with the use of cloud infrastructure, security and privacy controls, data analytics, and managed services.

IGEL Technology

IGEL Technology

IGEL Technology is one of the world's leading thin client vendors. Thin clients increase data security and compliance.

National Association of State Chief Information Officers (NASCIO)

National Association of State Chief Information Officers (NASCIO)

NASCIO's Cybersecurity Committee focuses helps state CIOs to formulate high-level security and data protection policies and technical controls.

National Institute of Information and Communications Technology (NICT)

National Institute of Information and Communications Technology (NICT)

NICT is Japan’s sole National Research and Development Agency specializing in the field of information and communications technology.

MBL Technologies

MBL Technologies

MBL Technologies specializes in information assurance, enterprise security, privacy, and program/project management.

NSEIT

NSEIT

NSEIT offers end-to-end Information Technology products, solutions and services including cybersecurity to organizations in the financial sector.

Cyber Covered

Cyber Covered

Cyber Covered provide complete website & data cover with market leading cyber insurance and powerful compliance software in one affordable package.

GoCyber

GoCyber

GoCyber is a new, highly innovative cyber security training app that uses action based learning to significantly improve the online behaviour of all employees in less than a month.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

Thridwayv

Thridwayv

Thirdwayv helps your enterprise realize the full potential of loT connectivity. All while neutralizing security threats that can run ruin the customer experience - and your reputation.

Secureframe

Secureframe

Companies from startups to enterprises use Secureframe to automate SOC 2 and ISO 27001 compliance, complete audits, and continuously monitor their security.

Almond

Almond

Almond is positioned as a key independent French player in audit and consulting in the fields of Cybersecurity, Cloud and Infrastructure.

Eureka Security

Eureka Security

Eureka help organizations securely use any cloud data storage technology they need without having to compromise on security.

Salem Cyber

Salem Cyber

Salem Cyber builds Artificial Intelligence (AI) solutions that work collaboratively with people to address scalability challenges in cybersecurity operations.

Nextgen Group

Nextgen Group

Nextgen Group is a pioneering technology services group with innovative and unique services across enterprise software, cloud, data management, and cybersecurity solutions.

Vercara

Vercara

Vercara offers a purpose-built, global cloud security platform that provides layers of protection to safeguard businesses’ online presence, no matter where an attack comes from or where it is aimed.