Paid Content: The Future of Online Media… ?!

Media outlets can obtain independence only when they themselves can guarantee their independence and financial stability, which, in its turn, can be achieved by diversifying sources of funding. Speaking about online media (which seem to be the future of journalism), a solution or a business model that might contribute to the financial independence of outlets is, in our opinion, the introduction of payment per content.

Paid online content… some figures

Paid content is one of the increasingly popular business models, at least globally. This is how it works: Content is hidden behind a wall and is accessible to media consumers only partially, and sometimes it is even hidden completely until a certain amount of money is paid for it. This type of monetization is usually done through subscriptions, and the most widely used global payment instrument is the paywall.

Paid content, therefore, could be one of the business models capable to save journalism from the arms of politics and to guarantee financial and editorial independence to media outlets. For example, data show that at the end of 2016, at the global level, 39% of those who made purchases online paid for news and/or media/information content.

We will not go into details about the models of paywall (hard, soft or metered) used by media outlets in different countries, because such information is accessible a click away on the internet. We will, however, bring some figures to this effect, showing that paid content over the next five years might become one of the most commonly used online monetization tools, subject to certain conditions, of course.

At the beginning of 2017:
There were over 200 media outlets that charged a fee for their content.
In the US, about 1,000 media outlets imposed some form of payment for content.

Although in post-Soviet countries paid content is looked at very sceptically – mainly because citizens do not perceive content/information as something they have to pay for – this business model is being tested and implemented in various online media outlets. There are already success stories about implementing paid content, including Raintv.ru, Slon.ru, Meduza.io, Snob.ru, Vedomosti.ru, KyivPost.ua, etc. By the way, at the beginning of 2017, Vedomosti.ru had over 2.5 million unique visitors (audience!), over 20 thousand paid subscribers, who generated an income of over USD 500,000.

Moldova cannot boast of eloquent examples in this regard. There is, or rather, there was an initiative of journalists at Mold-street.com to introduce paid content, but the idea was not welcomed by Moldovan media consumers. Why? In a small recent study, the majority of respondents (media managers, media experts and journalists) mentioned that paid content is (at least at this point in time) difficult to implement in Moldova. Among reasons, they indicated: a) low purchasing power of citizens, and b) most importantly – over 80% of respondents mentioned the unwillingness of media consumers to pay for media content simply because they perceive news and information as something that should be offered for free.

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Thus, for paid content to be implemented, it is important that those who want to impose it – media managers – comply with some conditions, namely:

First, it is necessary to have market studies (or internal studies, for each media outlet in part) regarding audience (a very important element in introducing paid content). You need to know the audience you are working for and to direct information at your public.

Second, it is necessary to have studies and/or researches testing the intention of media consumers regarding paid content. Currently there is no study or opinion poll testing the media consumers’ intention to pay for content. All those who claim that paid content is inapplicable in Moldova are expressing their own opinion, which is not confirmed by qualitative and quantitative data.

Quality of the content delivered and financial transparency. You can only ask for money for content of good quality.

Exclusive and permanent content. If you want to make money from content and to have your media business work, you need to regularly offer new information to the public. This is the only way you can earn the trust and money of media consumers.

Promotion of the content platform. In other words, everyone should know that you exist and that you produce the best content.

Existence of simple ways to pay.

User friendly and interactive online platforms.

In other words, if you want to sell content, you need to know your reader and to have exclusive product of good quality and attractive packaging for it!
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The article was published within the Advocacy Campaigns Aimed at Improving Transparency of Media Ownership, Access to Information and promotion of EU values  and integration project, implemented by the IJC, which is, in its turn, part of the Moldova Partnerships for Sustainable Civil Society project, implemented by FHI 360.
This article is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The content are the responsibility of author and do not necessarily reflect the views of USAID or the United States Government.