Paywalls’ Impact on Local News Websites’ Traffic and Their Civic and Business Implications

Abstract

In an attempt to manage a looming revenue crisis in their transition from print to digital, many local newspapers have implemented user payment (paywalls) in their online editions. This paper asks what the business and civic implications of such introduction of user payment are. Comparing audience metrics on a sample of eight local news websites (four Norwegian,four Danish) for 52 weeks before and after paywall introduction, this study finds that the numbers of both pageviews and unique visitors decrease upon the transition from free to feebased access to the news. Hard paywalls have a more negative immediate effect on traffic than soft paywalls. This difference equalizes over time and the traffic mainly remains at a decreased level regardless of paywall type. Traffic development in Norway is somewhat better than in Denmark in a short-term perspective, but national differences also even out over time. We posit that while paywalls may constitute a new revenue stream for local news media under financial pressure, they also challenge the civic function of the local news media since fewer people consult them.

Changing the Beat? Local Online Newsmaking in Finland, France, Germany, Portugal, and the U.K

“…The introduction of paid content allows local newspapers to capitalize on niche content in local markets, differentiate high-and low-value content, and identify valuable readers in key segments without significant drops in reach (Olsen and Solvoll 2018b). Restricting access can also lead to "thinner" consumption of local news, less attachment to local newspapers, and readers seeking alternative news sources, particularly younger, less affluent readers with lower interest in news (Olsen and Solvoll 2018a), as well as decreased pageviews and unique visitors over time (Olsen, Kammer, and Solvoll 2020). Park, Fisher, and Lee (2021) found that interest in supporting local news was tied to consumers' sense of community belonging and trust in local news, while a willingness to pay for news was tied to content quality, unique content, and interactive features.…”

Un-Locking Strategic Lock-Ins of Local Media: An Investigation of Local Media’s Preferences towards Public Support for Strategic Innovation

“…In line with these findings, Goyanes (2015) shows that US adults' willingness to pay for online local news increases with age. Therefore, delivering the value that customers require and thereby increasing their willingness to pay becomes a crucial factor that according to Olsen, Kammer, et al (2020) has to compensate for a decrease in online traffic due to hard or soft paywalls.…”

“…Regarding local media, we argue that public support instruments are potential external un-lock mechanisms. Two types of public support are differentiated: direct and indirect instruments (Nielsen and Linnebank 2011;K€ unzler et al 2013;Ali 2017;Harte, Howells, and Abingdon 2019;Olsen, Kammer, et al 2020;Murschetz 2020). While direct instruments support specific news organizations, indirect instruments support journalistic ecosystems.…”

Periodismo, experticia y toma de decisiones técnicas

“…La prensa tradicional ha tenido que adaptarse al impacto generado por el advenimiento y la masificación de internet, que ha cambiado los antiguos patrones de financiamiento y difusión (Luo, 2020). A la necesidad de digitalizarse, siguió una caída en los ingresos por publicidad, dado que la mayor parte de las entradas por publicidad en línea se las lleva Google o Facebook (Collins, 2011;Luo, 2020;Olsen et al, 2020). Esto condujo a recortes presupuestarios y de personal, y a la desaparición de gran parte de la prensa local en beneficio de las grandes corporaciones (Bethea, 2020;Catalan-Matamoros y Elías, 2020;Collins, 2011;Olsen et al, 2020).…”