According to an estimate by Deloitte, by the end of 2018, news and magazine media will have more than 20 million digital-only subscribers
The digital subscription model for newspapers is paying off big, as far as western markets are concerned, a report by FIPP, a media network body has revealed.
The three giants of US media—New York Times, Wall Street Journal and Washington Post—lead the charts with each over one million digital subscribers.
The NYT has 2.8 million subscribers and it charges each of them approximately $8.66 per month, raking in $24.25 million per month. The NYT reported a 25.5% (or 139,000) year-on-year increase in their subscription base in May this year.
Similarly, WSJ with 1.39 million subscribers earns $51.38 million per month as it charges its subscribers $36.99 for each copy. WaPo earns $10.83 million every month.
UK-based Financial Times, German Bild, The Economist and The Guardian follow the leaders on the list.
According to an estimate by Deloitte, cited in FIPP report, by the end of 2018, news and magazine media will have more than 20 million digital-only subscribers.
Importantly, by the end of 2020, the proportion of subscription to advertising revenue for publishers will be 50:50 for digital, the Deloitte report added. As recently as 2012, this split was 10:90.
As the news organisations across the world have been dealing with depleting ad revenues, many have decided to put up a paywall, allowing access to content only on a subscription model. Some have launched premiums plans to access specialised and deeply researched reports.
In India, newspapers like Business Standard have paywalled much of its news content. On the other hand, portals like Scroll have premium or ‘plus’ plans which give access to selected stories.A purely subscription-based startup, The Ken reported in May that it was profitable within 18 months of inception.