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Articles

Newspaper Paywalls—the Hype and the Reality

A study of how paid news content impacts on media corporation revenues

 

Abstract

This paper addresses the contemporary issue of newspaper paywalls. The paper aims to analyse different paywall models and how they impact on media corporations’ revenues in the United States, the United Kingdom, Slovakia, Slovenia and Poland (Piano Media), Australia, New Zealand and Finland. The paper finds that newspaper paywalls provide roughly 10 per cent of media companies’ publishing/circulation revenues. The paper also finds that paywalls are softening and prices in some cases are decreasing as news corporations fight for new digital subscribers and revenues. The argument here is that the revenue generated by paid online news content is not substantial enough to make paywalls a viable business model in the short term. Media corporations do not disclose information about their digital subscription revenues and this lack of transparency might impact on research findings.

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