Subscription Economy: News no longer main subs growth driver for NYTimes and Insider reorg drops paywall for 'much of its' content PLUS Facebook changes show 'desperation'

November 03, 2022

It's my job to keep a close eye on subscription strategies and the media market environment in general, and there are two interesting stories right now relating to subs. The New York Times has been working to build a subscription bundle of news, puzzles, recipes, reviews and sports so it should not come as any surprise that other parts of the bundle apart from news are now driving growth for its subs business.

The next story is a bit more surprising with Insider reorganising its newsroom and shifting more content outside of its paywall. It's surprising not because they are tweaking their paid offering but because as part of Axel Springer's growing media empire, subs are a core part of the mothership's business model.

Speaking of bundles, US public broadcaster NPR is now offering up a podcast bundle as part of a membership driver at its network of local stations.

That and plenty of news from the social media majors on this very damp Thursday in the UK.

Digital news outlet Insider is rolling out a major newsroom reorganization, removing much of its paywall in a strategic shift away from a subscription model that just a few years ago was seen as the company’s future.

It's a good media scoop for the recently launched Semafor, they are reporting that Insider, which is owned by German media powerhouse Axel Springer, will put much of its content outside the paywall. What's not clear from the story is whether they are tinkering with their paid content model and what goes behind the paywall or if this is a step to abandoning subs for a volume-based go big or go home move.

The company’s quarterly financial report follows what has become a trend: an operating profit margin of around 10%

The meat of this article is not only how the New York Times is building a bundle but how it will start to price standalone news subscribers (like me) to buy the full-fat bundle. C'mon NYTimes, don't become like a cable company! Some of us will still want to go à la carte.

NPR estimates less than 1% of its 20 million weekly digital users give to their local stations.

This is a fascinating pivot for NPR. I was with a regional public media group when NPR started to roll out paid membership-based podcast subscriptions through Apple. There is a fascinating subtext here that will be missed by anyone outside of the system, and that is the frequent tension between the NPR HQ and its network of locally operated member stations. Those local stations rely on voluntary membership contributions, but NPR's programming is a big draw for local members. This bundle will be for sustaining members at local stations, which means people who contribute a set amount each month. PBS, the US TV public broadcaster, does a similar thing with its VOD service passport so this makes sense. And it also might lure younger listeners to support the system. I wish them all the very best of luck.

The newsletter publisher aims to bring premium ads to the inbox.

And speaking of a subscription-based business, Puck has ramped up to 200,000 subs since its launch. Two things stand out: The idea of a newsletter as a magazine experience and also the premium ad play.

Consumers Seek To Bypass Paywalls On Publishing Sites: Study - 11/02/2022

And as more content goes behind paywalls, consumers will work on ways to get around them.

Social media platforms descend into drama and desperation

Meta Shows Desperation To Add Creators With New Facebook Feature - 11/02/2022

Feeling the pinch from YouTube and TickTock, Meta goes full on awkward teenage unrequited stalker in trying to court creators.

Mediagazer presents the day's must-read media news on a single page.

Another head-spinning pivot as Substack seeks a direction and an identity. We're a creator platform! We're a Twitter alternative! One has to wonder how many pivots they have left.

Twitter: IPG, Havas Advise Clients To Pause Ads, Groups Urge Advertisers To Demand Content Moderation - 11/02/2022

Advertising heavies tell their clients to be wary of Twitter until Musk clarifies a direction and provides assurances of brand safety.

Social Media Today

Musk backs off $20 for the blue tick, but scepticism rules for whether this is what Twitter needs.

Meta has confirmed that it's ditching the humans and leaning entirely on algorithms for its Facebook News tab.

Meta ditches human-curation for robots to curate content for its news tab. News leaders should now realise how transactional the relationship with Facebook is. Make sure you are clear about the value exchange and what you get out of that relationship.