Subscribe or Die Trying: Unlocking Hidden Revenue in Publishing

In the world of news and publishing online, some companies have figured out how to make readers happily pay for content, while many others are still scratching their heads.

For example, The New York Times and The Wall Street Journal have hit the jackpot with their subscription models. They've got millions of subscribers paying regularly. The New York Times had over 10 million subscribers by the end of 2023, showing that if you offer readers something valuable, they're willing to pay. Here is the source for the top news websites with subscribers . A similar list for Magazines subs can be found here .

Why Subscriptions?

Subscription models aren't just a revenue stream; they're the lifeboat in the choppy seas of privacy regulation and generative AI technology threatening to upend the advertising revenue model, publishers need to navigate with care. The right subscription strategy doesn't just secure a revenue stream; it builds a dam to protect against the floodwaters of uncertainty.

Think of the last time you got something for free that you would willingly pay for. That's the power of perceived value, and it's what every subscription model thrives on. In an age where content is king, queen, and the royal court, publishers hold the keys to the kingdom. Yet, many are giving away the crown jewels in exchange for the equivalent of a few beads and trinkets - ad revenue.

The Treasure Map: Subscription Strategies for Publishers

As per the experts from Bridged Media , Digital publishers (news + magazines) are leaving up to 40% of digital revenue on the table (increase in subs revenue - loss in ad revenue) with ineffective subscription strategy

Here are four strategies to consider:

1. Build Bridges, Not Walls

The journey from a casual browser to a paying subscriber is a long one where you build trust and a clear value exchange between the visitor and the content. By strategically placing premium content just beyond a bridge of free content, publishers can guide readers across, one piece of engaging content at a time. The key? Creating a personalized recommendation engine that creates a seamless journey from free to paid content.

Case in Point: Consider the success of media giants like "The New York Times", which offers a mix of free and premium articles, enticing readers with high-quality free content before introducing them to the premium side of things.

How to explore further: Understand how many users land only on free content or bounce off on a paywall. You need to increase the number of pages that these users see. Create ML recommendation engines by leveraging libraries like TensorFlow or PyTorch for model development and training. Using collaborative filtering techniques, such as matrix factorization, or deep learning models like neural collaborative filtering, they can personalize content recommendations.

If you don't want to invest in tech or resources, you can try out-of-the-box solutions such as plugins or other software providers.

2. The Magic of Propensity Models

Imagine if you knew exactly when a reader was most likely to subscribe. No, it's not clairvoyance; it's data science. Propensity models use readers' behaviour to predict when they're most likely to hit the subscribe button, allowing publishers to present the right offer at the right time. It's like knowing exactly when to ask for a dance, ensuring you're not left standing alone when the music stops.

Example: "The FT" uses reader data to tailor subscription offers, ensuring that readers who are most likely to subscribe receive the most compelling offers.

How to explore further: This requires investment on data science and Machine Learning. Scikit-learn offers tools for more straightforward algorithms and evaluation metrics. Apache Spark's MLlib is excellent for handling large datasets distributedly. The process involves collecting user interaction data, training a model to identify patterns.

There are some no-code solutions out in the market as well.

3. Dynamic Paywalls: The Art of Understanding What Your Audience Considers Premium

Not all content is created equal, and a dynamic paywall understands this. By evaluating the potential of each piece of content to convert readers into subscribers, publishers can decide which articles to lock behind a paywall and which to leave as part of the free bridge. It's a strategy as dynamic as the internet itself, ensuring that the paywall adapts to the content's value and the reader's engagement level.

Spotlight: "Wired" employs a dynamic paywall strategy, offering a number of free articles before encouraging readers to subscribe for more in-depth content.

How to explore further: The first and foremost would be to sit down with your team and define what is "Premium content". Once you define that, there are many technical ways you can implement a dynamic paywall solution. You can get in touch with me to discuss further. I am looking to learn more on this topic myself!

4. Mid-Funnel Magic: Engage, Engage, Engage

Engagement is the secret sauce of subscription success. By building more mid-funnel goals, publishers can keep readers coming back for more, turning casual browsers into loyal followers. Whether it's through newsletters, podcasts, or interactive content, the goal is to keep readers engaged and invested in the brand.

Highlight: "The Atlantic" leverages newsletters and podcasts to deepen engagement with its audience, paving the way for subscription conversions.

How to explore further: There are many ways but the key to building newsletters and email lists is to define the magic moment and the value exchange. Why should your visitor give you an email and when? If you struggle to answer that, please spend enough time to create a clear value exchange.

Conclusion: The Path to Subscription Success

By leveraging bridges of content, predictive analytics, dynamic paywalls, and engagement strategies, you can unlock the full potential of subscription models.

Imagine being able to generate 40% more digital revenue without having to worry about traffic or AI platforms. It's reader revenue that is built by building a relationship with your biggest asset - your audience.

About Me

I am an experienced entrepreneur who has worked in Media and Tech consulting for many years. Apart from being a full-time parent, I am also leading a project that aims to make AI more accessible to restore the balance of power between tech providers and digital publishers in the Media ecosystem. Bridged’s out-of-the-box tools eliminate the need for extensive data processing or dedicated AI resources, making AI adoption accessible and efficient.