Google and Kantar break the myths about Paywalls and News Subscriptions

In the third edition of the Google News summit, held yesterday, July 6, Google, in collaboration with the market research firm Kantar released a research report titled “The Indian News Consumer: Willingness to Pay and Key Drivers.”

At a time when newsrooms are experimenting with different combinations of formats, revenue streams, and content types, the study shines a light on the levers that drive online news subscription and how these vary across languages. The study incorporates qualitative and quantitative data from over 2000 respondents and nine languages.

Elucidating on the findings of the research, Director - B2B & Technology, Kantar, Biswapriya Bhattacharjee said, “Indian digital news consumers increasingly crave immersive, more relevant news consumption experiences, creating a prime opportunity for premium offerings. However, the price-sensitive nature of the market necessitates a diversified revenue strategy. What also comes out strongly is that in order to expand the user base, a meaningfully different and well-communicated value proposition is essential.”

Durga Raghunath, Head of India News Partnerships, Google India, added “The Indian digital news market is experiencing dynamic growth, driven by increasing internet penetration and an expanding ecosystem of local language publishers. Understanding the nuances of reader revenue models is crucial for the sustainability and growth of digital news. As part of our on-going efforts to support the news ecosystem, this research provides valuable insights into reader preferences and behaviors, empowering publishers to make informed decisions about their monetization strategies and build stronger connections with their audiences." 

Even though users, recognise the value of quality journalism, they are overwhelmingly driven by convenience and deterred by cost. A lack of clarity regarding the value proposition of paid subscriptions can easily falter the consumers decision to pay.

Key insights from the report: 

• 67% of current subscribers in the study cited "reliable content" as a primary factor in their decision to subscribe.
• The top three barriers to subscription are:
  a) overwhelming variety of plans/prices
  b) budget limitations
  c) lack of flexible payment/cancellation options 

• User preferences are also highly influenced by language. The study consistently reveals that "news in the preferred language" is a highly valued content element across various language groups, including Hindi (67%), Bengali (75%), Tamil (63%), and Gujarati (79%). 

• The overall willingness to pay for digital news content, whether through subscriptions or other models, is comparable between local language and English language news consumers in India. For eg - Both Kannada and Tamil speakers are relatively more receptive to subscriptions. They are also open to sharing first party data and micro-transactions in form of either pay per content or mini access pass. In contrast, first party data is likely to be the way to unlock value with Bengali and Malayalam speakers.

Opportunities for news publishers:

• Marketing a clear value proposition – News publishers can now highlight the unique value of content, emphasising features like in-depth reporting and specialized coverage not available for free.
• Simplify and streamline subscription –Publishers must prioritise transparent pricing, simplification, and flexibility. Offering clear pricing, easy cancellation, and sufficient free trials can build trust, demonstrate value and drive conversions.
• Diversify revenue streams – News sites can also experiment with micro-transactions, first-party data sharing, and ad-supported models alongside subscriptions. They can also consider a hybrid model offering a small subscription fee with limited ads. Invest in robust newsletters to cultivate a loyal audience and provide additional value.
• Offer flexibility and control – They can empower their users with flexible payment options like shorter billing cycles and customizable plans. While free trials attract new subscribers, focus on long-term value through bundled plans to ensure retention
• Elevate the Indic language experience - The research also reveals that Indic language publications often encounter difficulties navigating subscription processes and accessing content.

While barriers to paid subscriptions exist, so do substantial opportunities. By prioritizing a clear value proposition, user-centric approach to design and functionality, payment flexibility, and tailored strategies based on language demographics, news publishers can enhance user confidence, increase willingness to subscribe, and drive growth in the evolving digital landscape.