Publisher Succeeds By Respecting Readers

Michael Hedges July 27, 2022 - Follow on Twitter

Publishers, newspaper and otherwise, are clinging to the paywall. Why would they not? After display advertising faded away for many of them the fallback - and very digital - solution has been requiring payments for access. If they - news users - don’t like it, they can go somewhere else. And, so, many did.

UK publisher Guardian Media Group (GMG) released fiscal year financial results last week (July 20). The statement gleefully noted 13% annual revenue growth to GB£256 million, just over €304 million, and its best strongest results in 14 years. Positive cash flow for the fiscal year ending in April was GB£6.7 million, about €8 million. GMG was able to return money to owner Scott Trust, the non-profit investment fund established to preserve the independence of the Guardian and the Observer.

GMG is an outlier among UK publishers - and other throughout the world - beyond being owned by a non-profit, though that reality has had certain impact. “The Guardian does not need to make a profit,” noted Press Gazette (July 20), reflecting the disdain from for-profit publishers. In the last decade it has fully embraced digital publishing, now two-thirds of its revenue. The Guardian and Observer adopted the membership model, soliciting reader and supporter contributions similar to US public< broadcasters, along with advertising sales. Online registration is required, facilitating user data collection necessary to entice media buyers. There is no paywall. “The world’s wokest newspaper,” whined reliably right-wing Spectator (July 22).

“Strong revenue growth and our best cash performance in decades have firmly established a sustainable platform from which we can make strategic investments to grow the Guardian’s global reach, impact and revenue,” said GMG interim chief executive Keith Underwood, in a statement (July 20). “Economic and market conditions will be challenging in the year ahead. However, with outstanding journalism, a trusted brand, and the financial resources to invest, we are well placed to continue our growth strategy.”

A subtle discord has been growing among media watchers about effects on civic purpose from restrictions on access to accurate news. Publishers are generally not among this group. “Make ‘em pay,” as Rupert Murdoch once roared. That’s only slightly different from another favorite plutocrat tome: “Let them eat cake.”

In the Reuters Institute 2022 Digital News Report (June 15), author Nic Newman observed: “Despite increases in the proportion paying for online news in a small number of richer countries (Australia, Germany, and Sweden), there are signs that overall growth may be levelling off.” In addition news subscribers becoming more selective. We’re also seeing news fatigue setting in… with the number of people actively avoiding news increasing markedly.” Few institutional media observers dare broach the possibility that paywalls are inhibiting access to vital news for people with the greatest need.

“Democracy dies behind a paywall,” wrote public interest publisher Tara McGowan for Poynter (July 15). Her case in point was a Washington Post article (February 24, 2017) explaining how the newspaper adopted the slogan “Democracy Dies in Darkness.” At the time of her writing, the piece was behind the Washington Post paywall. Today (July 27) it is accessible.

Certainly, her sensitivity was toward US news media consumer, which can be stratified three groups. At the top are professionals who subscribe to everything through their employers. Here you find big fans of highly targeted - and expensive - online publications and newsletters. Also a small group, she writes, are those willing to pay to get behind that paywall.

Ms McGowan’s third consumer group are “those who will not or cannot pay for their news.” They “may have faith that good, accurate news about the world and their own communities will somehow find them. But with few exceptions, they’re wrong about that. Increasingly, the fact-based news that’s necessary for a pro-democracy citizenry is behind a paywall.”

Interestingly, an opinion piece with exactly the same title appeared a few weeks earlier in the University of Texas San Antonio online student publication The Paisano (April 12), written by Jada Thomas. She also noted the Washington Post slogan. Her argument went a step further: “News outlets that block their content with paywalls contribute to the deconstruction of the public opinion of journalism. After all, it is hard to champion a free press if it isn’t actually free.”

See also in ftm Hot Topics

• Hot Topics - Media in the UK

• Hot Topics - Paywalls

• Hot Topics - Business Models