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6 Alternative Revenue Streams for News Publishers 

18 November 2024
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Traditional revenue streams for publishers, particularly print advertising and basic subscriptions, are becoming increasingly unsustainable. As a result, there has been a notable shift towards diversifying revenue sources beyond traditional subscriptions and advertisements.

This revenue diversification is yielding positive results. According to the 2023 WAN-IFRA World Press Trends Outlook, alternative revenue sources such as events, contract publishing, and e-commerce are expected to contribute 21.6% of publishers’ total revenue globally by 2024, a clear indication of the growing importance of diversification. However, print advertising and circulation still account for 57.5% of total revenue worldwide, underscoring the ongoing challenge of transitioning to digital-led models.

Our latest blog post explores these emerging alternative revenue streams, highlighting how news publishers are adapting in challenging times for the print industry.

1. Bundling strategies: Boosting revenue and user engagement

Bundling has become a cornerstone of The New York Times’ (NYT) strategy to drive revenue and user engagement. Subscribers are offered the option to group a subscription package that includes the core news offering alongside products like a cooking app, games and puzzles, Wirecutter reviews, and The Athletic sports content. This approach not only caters to diverse audience preferences but also mitigates the impact of declining traffic to breaking news coverage due to news fatigue.

In the third quarter of 2024, 46% of the NYT’s subscriber base consisted of bundle and multiproduct subscribers, up from 38% last year, reflecting the growing appeal of this strategy. The company added 300,000 net bundle and multiproduct subscribers in Q3 alone, reinforcing its strong traction. Financially, the benefits are clear: digital-only average revenue per user (ARPU) grew 1.8% year-over-year, reaching $9.45, while digital-only subscription revenues increased by 14.2% during the same period.

Bundled subscriptions offer significant value, with average monthly revenue per bundle subscriber 44% higher than news-only subscribers. By surrounding its core news service with diverse products, the NYT enhances subscriber value, improves retention, and deepens engagement. The company remains focused on growing the share of bundle subscribers to exceed 50% of its total base in the coming years, aligning with its broader vision of product diversification and long-term growth.

Following the NYT’s success, other publishers are also innovating with bundling strategies. Bonnier News, a leading Swedish publisher, exemplifies how bundling can align organizational goals and improve customer experiences. Their subscription bundle, +Allt, provides access to over 50 brands with a single login. Since its inception, ARPU has increased by over 30%, and more than 200,000 +Allt subscriptions have been sold. Additionally, subscribers to multiple products have grown by a third, indicating the strategy’s effectiveness in boosting engagement and perceived value.

Similarly, Schibsted has leveraged its Full tilgang bundle to reinvigorate subscriber growth. This comprehensive package includes access to various newspapers, podcasts, and magazines, appealing particularly to younger audiences. 60% of Full tilgang subscribers use three or more products, showcasing higher engagement levels. Moreover, 10% of Schibsted’s digital subscription income now comes from Full tilgang, with these subscribers exhibiting better retention and renewal rates than standard subscribers.

2. The audio revolution: Podcasts as a new frontier for publishers 

Podcasts are no longer peripheral but central to news publishing strategies. According to the Reuters Institute, over a third of audiences across 20 countries now consume podcasts monthly. This makes podcasts a vital channel for attracting younger, well-educated audiences, offering opportunities for sponsorships, premium subscriptions, and engaging new demographic segments.

Case studies: Major news publishers embracing audio

  • The Washington Post: By implementing audio articles, The Washington Post observed a threefold increase in user engagement time. Their focus on voice AI for scalable audio article delivery underscores the growing preference for multitasking-friendly news consumption.
  • NRC: A Dutch publisher has created its own audio app which showcases NRC-produced podcasts as well as a set of curated third-party content. They created their own app in order to become more independent from the algorithms of other platforms. In 2022, 20% of their subscribers had downloaded the app.
  • The Economist: The Economist successfully leveraged podcasts to target younger, more gender-diverse audiences through its Economist Podcasts+ service, launched in October 2023. With a low entry price of €4 per month, the offering appealed to users who had never paid for podcasts before. Nearly half of its subscribers interact exclusively through podcasts, highlighting the medium’s potential to engage new audiences and diversify revenue streams.

Advantages and challenges of audio content for publishers

  • Enhanced engagement and retention: Audio formats have proven to be highly engaging. For instance, Zetland experienced an average completion rate of 90% for its audio stories, indicating that listeners are more likely to consume entire pieces than text.
  • Diverse and younger audience reach: Audio content, especially podcasts, has broadened the audience base for news publishers. For example, The Economist’s podcast subscribers skew younger and are more gender-balanced than their traditional readership. This highlights the effectiveness of podcasts in reaching demographics that might not engage with traditional formats.
  • Financial benefits: Introducing podcasts and audio articles has opened new revenue streams. The first quarter of 2022 saw a staggering 500% increase in digital audio revenue among publishers. Meanwhile, The Economist’s subscription-based model demonstrates how publishers can convert loyal podcast listeners into paying customers.
  • Challenges in scalability: While audio offers significant opportunities, its scalability depends on specialized skills and technology. Many publishers, such as The Economist, have overcome this by starting with free content to build a loyal listener base and later transitioning to paid models.

Key lessons from The Economist

  • Low entry point to convert free users: The Economist Podcasts+ strategically used an accessible price point to attract subscribers, many of whom had never paid for podcasts.
  • Targeted content for specific demographics: The Economist appealed to younger audiences and first-time subscribers with shorter, engaging formats and diverse topics.
  • Brand building through podcasts: Podcasts have become vital tools for publishers like The Economist, helping them reinforce brand loyalty, diversify product offerings, and establish themselves as trusted voices in global affairs.

By focusing on high-quality audio production, strong host-listener relationships, and relevant content, publishers are not only generating new revenue streams but also future-proofing their business models against the challenges of declining traditional media consumption.

3. Publishers focus on events

Events have proven to be a successful strategy for publishers, generating revenue and deepening audience trust. In an era where trust in media is critical, live events and interactive experiences strengthen publishers’ credibility while attracting sponsorship revenue. There are a few reasons why publishers focus on events:

  • Their flexibility allows for various themes and formats, from industry discussions to cultural galas and educational webinars. 
  • They foster community engagement and can be catered to different audiences (public, B2B, industry, etc.). 
  • They are a natural extension of publishers’ skill sets in content creation, repurposing content into live experiences.
  • Advertisers are drawn to these events, attracted by the visibility and engagement opportunities they present.  

In fact, a third of publishers intend to focus more on events as a revenue source in the future. 

Outlets like Axios, Bloomberg, and Semafor have incorporated events as a central part of their revenue strategies and are observing significant success. Smaller publishers have also seen similar successes, whether it is organising events to showcase homes in Texas or a food festival in Utah.  

The British music magazine New Music Express (NME) is another standout example. After discontinuing its 66-year-old print edition in 2018, NME, now under the Caldecott Music Group, has transformed into a ‘next generation media company’, expanding into gaming, events, and films. The launch of NME Screens, a venture into curating preview screenings with various studios and streamers, marks a bold step in their evolution. NME’s focus on events as a revival strategy is a fascinating development, illustrating the potential of this avenue for publishers seeking new revenue streams. 

4. Balancing profits and principles: The challenges of native advertising in journalism 

Native advertising, also known as branded content or advertorials, has emerged as a significant trend. This approach involves the sponsored publication of articles that blend into the style and format of editorially produced content. Major publishers like The Guardian, Forbes, Financial Times, The New York Times, and even the BBC have adopted this strategy. While it can be financially beneficial, the use of native advertising is often hotly debated

One of the primary concerns with native advertising is the potential confusion it can cause among audiences. Readers might not immediately realize that the article they’re perusing is, in fact, sponsored content. This lack of clarity can lead to a trust deficit between the publication and its audience, as readers may feel misled upon discovering the true nature of the content. 

Another contentious aspect of native advertising lies in the internal dynamics of newsrooms. The financial ties to advertising partners can inadvertently lead to self-censorship. This scenario often manifests as a reluctance to publish content that might cast these partners in a negative light. Such a practice not only undermines journalistic integrity but can also inflict reputational damage on the news outlet, casting doubt on its commitment to unbiased reporting. 

Despite these challenges, native advertising represents a vital revenue stream for many publishers, especially in an era where traditional sources of media income are dwindling. The key to harnessing this opportunity without compromising ethical standards lies in transparency. Clear labelling of sponsored content and maintaining a strict separation between the editorial and advertising departments can help mitigate the potential pitfalls. By doing so, publications can enjoy the financial benefits of native advertising while upholding the trust and respect of their readership. 

5. How publishers are capitalizing on ecommerce and affiliate marketing 

Affiliate commerce is becoming an increasingly important revenue source for publishers. Recent Digiday+ Research found that 68% of publishers now generate at least a small portion of revenue from affiliate commerce, up from 61% last year. The growth in e-commerce revenue is substantial, with major players having observed an 80% increase from 2020 to 2022.

Recognized for its “Indy Best” series, The Independent has made e-commerce one of its four priority areas, contributing to around 10% of all revenue. The site’s focus on quality shopping experiences, leveraging its brand relationships, and investing in data analysis for better product understanding has significantly boosted its e-commerce revenue

With a long-standing authority in men’s fashion, GQ has intuitively integrated shopping into its content strategy. Its e-commerce revenue has grown annually since 2017, leveraging tools like curated shopping guides and GQ Recommends email alerts. GQ’s focus on quality over quantity and expansion into lifestyle categories has further enhanced its e-commerce success

Hearst has ventured into digital subscriptions with unique products like a $100 per year exercise video service, All/Out Studio. This service, along with other products like the Backslash Fit yoga mat and “Keto for Carb Lovers” cookbook, showcases Hearst’s strategy to diversify revenue and capitalize on their brands’ strengths

Strategic considerations

  • Investing in quality content, like reviews and recommendations, is key to driving e-commerce success
  • SEO strategies and subscriber traffic are vital for enhancing e-commerce visibility and performance
  • Publishers are exploring new avenues, like shoppable video content and social media platforms, to expand their e-commerce reach

6. Relying on donations and nonprofit models 

Donations are a significant source of revenue for several publishers. The Guardian and La Presse have notably adopted this approach, each taking a unique path to leverage donations as a sustainable revenue source. 

Faced with financial challenges, The Guardian successfully implemented a donation-based model without a paywall. Key to this strategy was its status under the Scott Trust, promoting itself as a public good. Transparent reader engagement strategies and mission-driven messaging supported effective donation drives. This approach, coupled with a soft registration wall for data collection, led to a significant financial turnaround and membership growth

Transitioning to a nonprofit model, La Presse sought government and philanthropic funding. This shift allowed for a reimagined approach to journalism, focusing on digital platforms like tablets to reach wider audiences. The move to nonprofit status was strategic, aiming to sustain quality journalism through diversified funding sources, including potential government support. 

Crowdfunded journalism is on the rise, with several publishers exceeding their fundraising goals through innovative campaigns. For example, The New European successfully engaged its audience in a co-ownership model, raising 200% of its target amount.

Takeaways for publishers 

  1. Diversification is crucial: The success stories of publishers who’ve embraced events, e-commerce, podcasts, and bundled services stress the importance of not relying on a single revenue stream. 
  2. Leveraging brand strength: Publishers should capitalise on their established brand and audience trust when venturing into new domains like e-commerce or events. 
  3. Quality and ethical standards: Maintaining high-quality content and clear ethical standards, especially in sponsored content, is vital to retain audience trust and credibility. 
  4. Audience engagement and retention: Innovative approaches, whether through interactive events or engaging audio content, help deepen audience relationships and loyalty

How can publishers explore alternative revenue sources? 

  1. Assess and leverage existing assets: Publishers should evaluate their current strengths, such as content creation, audience reach, or brand reputation, and consider how these can be adapted to new revenue models. 
  2. Invest in technology and skills: Venturing into areas like e-commerce, digital events, or podcasts requires investing in relevant technologies and skill sets. Training existing staff or hiring new talent with the required expertise can be a significant first step. 
  3. Collaborate and partner: Forming partnerships with tech companies, e-commerce platforms, or other media entities can provide the necessary infrastructure and expertise without significant upfront investment. 
  4. Test and learn: Implementing new revenue streams should be approached with a ‘test and learn’ attitude. Starting with smaller initiatives can help understand what resonates with the audience before scaling up. 
  5. Maintain transparency and integrity: As publishers diversify, maintaining transparency with the audience, especially in areas like sponsored content, is crucial to sustaining trust and loyalty. 
  6. Focus on audience needs: Understanding and responding to audience preferences should be at the heart of any new strategy. This involves leveraging data analytics to gain insights into consumer behaviour and preferences. 

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