Business Wire

What’s Impeding the Growth of Digital Paid-for Content? Research from Vindicia & MTM Reveals That 74% of Industry Execs Cite the Lack of Unique Digital-First Content as a Challenge

Del

Vindicia , the leader in business to consumer digital services monetization, today announced findings from a research program it commissioned with MTM to explore European publishing industry perspectives on the development of direct-to-consumer revenues from digital content, products and services. While most newspaper and consumer magazine publishers remain committed to print products and growing their digital advertising revenues, it showed that paid-for digital content offerings, products and services are considered an important strategic priority. The research focused on four key markets: the UK, Germany, the Netherlands, and Sweden.

The study found that, although developing successful paid-for services remains challenging, the industry has made considerable progress: higher-quality newspapers are widely adopting digital subscription models, while magazine publishers are pursuing a diverse range of paid-for opportunities. Opportunities vary widely, publisher-by-publisher and market-by-market, but successful businesses will need premium brands, high-quality content, technology platforms, data and analytics capabilities, and top digital talent.

Findings from the study included:

  • A consensus that digital subscription models can help to grow publisher revenues. This is especially true for higher-quality newspapers, with paid-for memberships, freemium models and flexible paywalls emerging as viable strategies. Publishers typically offer some content for free, looking to grow traffic and maintain their editorial reach and reputation, while driving subscription take up with premium or added-value content, special sales and introductory offers.
  • Charging for digital content online is challenging. Industry executives cited the proliferation of free digital content (91 percent of surveyed industry executives), a lack of unique digital-first content (74 percent), and poor-quality user experiences and value propositions (70 percent) as key factors impeding the growth of paid-for digital content revenues.
  • Investment is crucial. To succeed with digital subscription models, publishers will need to continue investing in high-quality content, technology platforms, data and analytics capabilities, and top digital talent – maintaining and developing brands and services that are valued by, and cater to the needs of, their digital readers.
  • Consumer magazines are less confident about the prospects of growing revenues from paid-for digital content. This reflects the more diverse nature of the sector, the enduring appeal of magazine print products, and, in many cases, disappointing experiences with digital editions or replicas. However, many magazine publishers are hopeful that bundling (combining digital content subscriptions with other paid-for offerings) and aggregation platforms (selling a selection of curated content from a range of magazine brands) will help to grow online content revenues.
  • Digital diversification opportunities vary. Alongside digital content sales, industry participants are also looking at digital diversification opportunities, developing new revenue streams from premium services such as ecommerce, dating, and gaming and gambling. 62 percent of surveyed publishers see the development of new paid-for services as a top strategic priority. It was widely acknowledged that developing successful offerings is challenging. Publishers need strong relationships with their readers, the right technical and product development capabilities, excellent digital marketing skills and an ability to invest over time.

“Experiments with paywalls and subscription content began back in the 1990s, but some have been disappointed with the industry’s slow progress and occasional dissatisfaction with paid-for content, so we wanted to explore what publishers at the coalface believe will and won’t work,” said Kevin Cancilla, head of global marketing, Vindicia. “With a consensus that digital subscription models can help grow revenues, but that charging for digital content online is challenging, it’s important that publishers invest well – choosing the best revenue streams for their brands and using technology to deliver.”

“The study shows signs that premium digital services are entering a new period of growth and development,” said Jon Watts, managing partner and co-founder at MTM. “Publishers now have several key priorities: to develop strong premium brands, to deliver high-value content and compelling user experiences and to use technology, utilising state-of-the-art analytics, customer insight and digital marketing capabilities.”

Quotes from Study Participants

"We've seen that users are more willing to pay if they feel they are getting a great user experience and access to exclusive content," said Gadi Lahav, head of product at the Financial Times. “We've always taken a flexible approach to paid content. Allowing sampling of journalism is a really important part of attracting new readers and subscribers, and we're seeing this approach to access becoming increasingly popular in the industry,”

“Our business was transformed by having immediate access to relevant data and a tech team that can respond quickly. We’ve built a great bottom-up system – enabling our tech team was key,” said Gadi Lahav, head of product at the Financial Times.

"We have really strong fashion and lifestyle brands and we see a major opportunity to use them to build specialist digital services. These services need to deliver a new type of experience. They need to be more like coaching, one-to-one personalised interactions, then audiences will be willing to pay for them," said Krischan Lehmann, digital director at Condé Nast Verlag.

“There are two different types of news consumers in Germany. The first type simply wants news updates and is only interested in headlines – this type of content is available for free and reaches millions of readers. The best way to monetise these readers is via advertising. That is the old way. The second type wants deeper insight and analysis or opinion from journalists. They are willing to pay for quality content. This is the new way. However, there are still very few customers of the latter type today,” said Alima Longatti, head of direct marketing & CRM, Condé Nast Verlag.

“We’re confident that digital will drive revenue growth, but significant growth won’t happen over the next three years. Most magazine publishers are simply not ready for it,” said Stina Abenius, publishing director at Aller Media AB.

“Metered paywalls probably work much better for news content. Magazine publishers engage readers with storytelling around their passion points, rather than producing high volumes of newsworthy content,” said Michel Koch, CMO at Time Inc. UK. “Ecommerce can add significant value if you’re smart with your technology investment and can find exclusive high-margin categories that work with your brand. There’s no point in setting up a mass market offering as you’re then competing with the likes of Amazon.”

“Memberships will be great for special interest publishers. Take cycling, for example – it’s a massive market and cycling enthusiasts would be happy to pay for membership of a cycling-related club, providing them with a way to connect with like-minded people and offering them easy access to cycling gear and advice,” said Michel Koch, CMO at Time Inc. UK.

“People will always be drawn to quality content – that’s why they come to your website. If you invest in a strong and differentiated content proposition, you will definitely have a good starting point for making money with new digital products,” said Ronald Bouwman, sales manager ad sales at NRC Media.

“Most magazine content is niche – people will pay for aggregators who can super-serve specific niches… for example, boat enthusiasts being able to get all boating-related content in one place,” said Unn Edberg, Executive Vice President at Chef. “Memberships will work for brands that can build communities around a specific passion point or interest.”

The research programme consisted of four main stages:

1. A review of industry data on publishers in four key European markets to establish a baseline of industry knowledge about existing digital paid-for products and services.

2. A series of in-depth interviews with senior publishing industry executives, exploring perspectives on digital paid-for content and other products and services.

3. An online survey of executives in the four European territories, quantifying their views on challenges and opportunities in digital paid-for content, products and services.

4. Executive seminars held in London, Amsterdam, and Stockholm, discussing the nature and scale of the opportunities for publishers.

Click here to download the full report.

About MTM

MTM is an international research and strategy consulting firm, focused on the media, technology, communications and advertising industries. MTM helps companies understand and respond to digitally-driven change, providing award-winning consumer and industry insight and analysis, advice on strategy, growth and business development, and support for organisational change.

For more information, please visit www.mtmlondon.com.

About Vindicia

Vindicia, an Amdocs company, set out to transform the way business is done. Today, recurring payment engines and billing are commonplace. Vindicia believes a subscription platform should pay for itself. Ours will. Our SaaS platform automatically resolves failed transactions so you retain subscribers longer. By combining big data analysis, strategic consulting and proprietary technology, Vindicia will generate significant new revenue. Consumers today share, store, view and purchase goods in ways unimaginable before – and Vindicia removes the barriers between the consumer and the goods they want. That's why our client list reads like a who's who of subscription businesses. If you need a complete subscription management solution there's one choice – Vindicia.

For more information visit www.vindicia.com.

Copyright © 2017 Vindicia, Inc. All rights reserved. Vindicia, the Vindicia logo, Vindicia CashBox, Vindicia Select, ART Advanced Retention Technology, and the designated trademarks herein are trademarks of Vindicia, Inc. in the U.S. and/or other countries. All other brands or product names are the trademarks or registered trademarks of their respective holders.

# # #

Contact information

For Vindicia
Astor Sonnen or Flora Haslam
Finn Partners
+44 203 217 7060
vindiciapr@finnpartners.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

FLIR Introduces Assisted Docking Technology and First Boat Manufacturer Partner22.1.2019 09:00Pressemelding

FLIR Systems, Inc. (NASDAQ: FLIR) today announced the Raymarine DockSense™ assisted docking system, the marine industry’s first intelligent object recognition and motion sensing assisted docking solution for recreational boating. DockSense system uses FLIR machine vision camera technology and video analytics to integrate intelligence gathered from surrounding imagery with the vessel’s propulsion and steering system to assist boat owners in tight quarter docking maneuvering. Additionally, FLIR announced that Prestige Yachts, a Groupe Beneteau brand, will become the first to demonstrate the technology. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190122005313/en/ Docking a boat can be a stressful experience, even for the most experienced captains. Often wind and tides make the task more difficult, and docking mishaps can become expensive repairs and safety hazards. The DockSense system is designed to augment a captain's boat

BIOCERES and UNION ACQUISITION CORP. announce Bioceres’ unaudited quarterly operating results for the period ended December 31, 201822.1.2019 08:52Pressemelding

Bioceres, a leading Latin American agricultural biotech company (the “Company”), and Union Acquisition Corp. (NYSE: LTN) (“UAC”), a special purpose acquisition company, today announced the Company’s unaudited operating results for the quarter ended December 31, 2018. The parties had previously announced the execution of a definitive share exchange agreement (the “Exchange Agreement”) pursuant to which the Company will contribute its agricultural solutions business in exchange for equity of UAC. The Company reported unaudited revenues of $62.6 million during the quarter ended December 31, 2018, which represents a 33% growth rate over the same period a year ago. The adjustments and the translation mechanism from the application of IAS 29 had a positive impact of $8.7 million during the quarter ended December 31, 2018. Additionally, the Company’s management team expects Gross Profit and EBITDA margin performance to exceed that of the same period a year ago. Members of UAC’s sponsor and, o

Tradeshift Announces Record Year and Exceptional Growth in Every Category Heading Into 201922.1.2019 08:00Pressemelding

Tradeshift, the leader in supply chain payments and marketplaces, today announced results from the fourth quarter of 2018, marking the eleventh quarter in a row of successive growth and beating targets. Tradeshift’s fourth quarter growth stats announced today include: YoY new bookings grew 250 percent New total contract value grew by $59M in Q4 YoY revenue grew 178 percent (trailing 12 months) Gross Merchandise Volume (GMV) more than doubled, growing by 112 percent YoY Tradeshift Go experienced high growth with 12 deals signed in Q4 Signed App partner Transfermate, allowing Tradeshift customers to easily receive and make foreign currency payments Expanded Partner ecosystem with two additional BPO partners signed The company’s customer roster continued strong growth this quarter adding a record 49 new customers, including Charter Hall, HSBC, Econocom and more. “2018 was a record setting operational year for us,” said Christian Lanng, CEO and co-founder of Tradeshift. “It’s been so grati

Bridgestone Europe To Acquire TomTom Telematics For €910 Million Cash Consideration22.1.2019 06:58Pressemelding

Bridgestone Europe NV/SA (“Bridgestone”), a subsidiary of Bridgestone Corporation in EMEA, has entered into an agreement with TomTom to acquire its telematics business, for a cash consideration of €910 million. The transaction will bring together the world’s largest tyre and rubber company with the number one provider of digital fleet solutions in Europe, creating a leading data platform for connected vehicles. TomTom Telematics will accelerate Bridgestone on its journey to becoming a mobility solutions leader in the region, and the combination of both companies’ offerings will allow Bridgestone to cross-sell tyres and solutions to a larger customer base. Furthermore, the data access will enhance Bridgestone’s virtual tyre development and testing as well as connected tyre innovation benefiting all customers including OEMs. New social, economic and technological megatrends are pushing the pace of change in the automotive industry and the future of vehicles is connected, autonomous, shar

Ferring, Rebiotix and Karolinska Institutet Extend Collaboration to Research Next Generation of Microbiome Treatments22.1.2019 06:00Pressemelding

Ferring Pharmaceuticals and Karolinska Institutet announced today a five-year extension of their collaboration to explore the potential of the human microbiome in reproductive medicine and women’s health and gastroenterology. The collaboration brings together specialist expertise from Karolinska Institutet in early stage research, Rebiotix Inc. (acquired by Ferring in 2018), a late-stage clinical microbiome company, and Ferring’s therapeutic area and commercialisation capabilities. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190121005428/en/ The extension includes six reproductive health clinical studies of approximately 6,000 women and babies and four gastroenterology studies of approximately 3,000 adults and children, to further investigate the role of the microbiome in areas of high unmet need including recurrent pregnancy loss, preterm birth and inflammatory bowel disease. “The extension of this partnership presents a

GA Telesis Board Appoints Norman Liu as an Independent Director22.1.2019 06:00Pressemelding

GA Telesis, LLC, a leading global commercial aviation integrated services provider, announces that its Board of Directors will appoint Norman C.T. Liu as an Independent Board Member effective February 1, 2019. Norm brings over 35 years of experience in aviation financing, infrastructure investing and investment banking. He is the former Chairman, President and CEO of GE Capital Aviation Services (“GECAS"), a world leader in commercial aircraft leasing and financing. He retired from GE at the end of 2016 after 30 years of service and is currently a senior advisor to various companies in the infrastructure and aviation sectors. He was an Advanced Leadership Fellow at Harvard in 2017 and also serves as an Adjunct Professor at University College Dublin in Ireland. He received his bachelor’s degree from Yale University and his MBA from Harvard Business School. “We are pleased that Norm will be joining our Board to participate in the explosive growth of our franchise,” said Abdol Moabery, Pr