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Paying For What, How Much, and Why (Not) ?
Paying For What, How Much, and Why (Not) ?
Propelled by the recent economic recession that caused substantial declines in advertising revenue, some major newspapers have
renewed their efforts to find alternative revenue models. This
renewed interest in paid content strategy triggered another round
of debates on the viability of the paywall. To address the recurring
industry debate, this study, based on a national survey of 767 U.S.
online adults, systematically evaluated users paying intent for different newspaper formats, the amount they are willing to pay, as
well as users responses to various payment models being considered by the industry. Results showed the print edition outperforms
other formats (Web & apps) in terms of usage, preference, and
paying intent; and is perceived as the most valuable platform.
Paying intent for the online formats (Web & apps) was weak, and so
was peoples response to each of the 6 payment models under study.
Therefore, how users are charged does not make much differencewhether they are charged does. The analysis also identified
the predictors of paying intent for newspaper formats and different
payment models. Although multiplatform news delivery has become
a reality, paying intent for digital news content remains elusive.
The relatively short history of online news publishing has seen several
rounds of debates on whether newspapers should charge for online news
access (American Press Institute, 2009; Herbert & Thurman, 2007; Outing,
2002). Although most news sites rely on advertising revenue and offer
content for free, some newspapers (e.g., The New York Times) have demonstrated a sustained interest in developing paid content strategies. Propelled
Address correspondence to Hsiang Iris Chyi, School of Journalism, University of Texas at
Austin, 300 W. Dean Keeton (A1000), Austin, TX 78712. E-mail: chyi@mail.utexas.edu
227
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H. I. Chyi
by the recent economic recession that caused substantial declines in advertising revenue (Newspaper Association of America, 2011), several major
newspapers1 have renewed their efforts to find alternative revenue models
by implementing paywall plans in various forms.
The renewed interest in paid content strategy triggered another round
of debates among media critics and newspaper practitioners (Coddington,
2010). As usual, some argue content should be paid for, whereas others
remain skeptical about the paywall (Jarvis, 2010). The intensified debate
indicates the significance of the subject matter as it pertains to the value
of news and the future of journalism, but the quick facts and reasoning
often seen in online commentaries and trade publications often failed to
contextualize the issue at hand. For one thing, most newspapers manage a
cross-media product portfolio (Picard, 2005), offering products in multiple
formats (print, Web, and apps for mobile devices) that are related goods
for which the demand is interdependent on one another. Thus, a systematic
examination that takes into account the overall product portfolio is essential.
This study, based on a national survey of United States online adults,
seeks to fill the gap by examining users paying intent for different newspaper formats (print, Web, and apps), how much they are willing to pay, as well
as users response to various payment models under consideration by the
newspaper industry. The analysis goes beyond descriptive data to uncover
the predictors underlying paying intent, as well as the relative importance of
price in determining consumer choice. The goal here is to contribute a timely
and systematic examination on paying intent for multiplatform newspapers
to this long-term industry debate.
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had generated 150,000 online-only readers who paid a $49 annual subscription fee (for a detailed account of its paid content model, see Steinbock,
2000).
In 2000, the economic downturn triggered massive layoffs and consolidations in online news organizations all over the world. Soon after,
discussion about the subscription model took off. Many general-interest news
publishers argued it was time to start charging for the valuable information
they offered online (Outing, 2002). However, disappointing results came
back from market and academic research with little evidence suggesting that
users were willing to pay for online news. The sign-up rate for fee-based
online newspapers was as low as 0.2% to 2.6% of the print circulation, and
71% of news site users would go somewhere else because there were so
many free sites available (Borrell Associates, 2001). A 2002 consumer survey
showed 70% of online adults could not understand why anyone would pay
for content online (Jupiter Media Metrix, 2003). A 2002 survey of Hong Kong
residents also documented a very unenthusiastic response to paid content
only 2.5% of online news users subscribed to any of the four fee-based
online news services (Chyi, 2005). Overall, many newspapers generated less
than $5 in online revenue per unit of circulation (Borrell Associates, 2003).
As a result, the idea that content must be free unless it is very specialized (Carlson, 2003, p. 54) and it is impossible to charge for general news
content (Herbert & Thurman, 2007, p. 215) became the industry consensus.
Media scholars, thus, began to ask whether online media can survive without
a viable model and whether there is value to maintaining digital media when
profitability is not achievable (Kawamoto, 2003). However, the experiment
with the subscription model continued.
In September 2005, The New York Times launched its paid service
TimesSelect online. At the end of 2006, it had 336,000 subscribers, of
which about 45% paid $49.95 per year to access the content (Project for
Excellence in Journalism, 2006).2 However, in September 2007, the Times
dropped TimesSelect, and media critic Jeff Jarvis (2007) commented, With
it [TimesSelect] goes any hope of charging for content online. Content is
now and forever free (para. 1). Only a handful of sizable newspapers
have stayed with the subscription model (Prez-Pea, 2009)they are either
financial news and information providers, such as The Wall Street Journal
and The Financial Times3 , or newspapers in local markets, such as The
Arkansas Democrat-Gazette (Hussman, 2007) and The Albuquerque Journal
(Friedman, 2003; Windsor, 2009).
However, another economic downturn changed many newspaper publishers views. The 2009 newspaper crisis (Chyi, Lewis, & Zheng, 2012)
once again resurrected the free vs. fee debate within the industry (Kinsley,
2009)this time with a slightly different terminology (the paywall) and
a much stronger determination. A 2009 survey of newspaper executives
showed that nearly 60% of respondents were considering paid content
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H. I. Chyi
strategies. This was a dramatic change, says the report, considering that 90%
of the responding papers did not charge for content, and only 3% had a
subscription-only site at the time of the survey (American Press Institute,
2009).
In the Summer of 2010, two London newspapers, The Times and the
Sunday Times, implemented a paywall plan and reportedly lost 90% of their
online traffic almost immediately (Halliday, 2010). In October 2010, Newsday,
the Long Island daily, also placed its Web edition behind a paywall. Three
months later, only 35 people had signed up to pay $5 per week to get access
to newsday.com (Koblin, 2011).4 On March 8, 2011, The Dallas Morning
News, the fifth largest metro newspaper in the United States, started charging
online users $16.95 per month for a digital package that includes Web and
apps (Doctor, 2011b). A few weeks later, The New York Times implemented
a metered model, requiring online users who view more than 20 articles per
month to become a subscriber, paying either $15, $20, or $35 per month
(Sulzberger, 2011). Since September 2011, the two Philadelphia newspapers
TM
have been offering discounted Android tablets bundled with a 1- or 2year contract for its news apps (Seize the Future, 2011). This time, more
online news suppliers are experimenting with more diverse paid content
strategies.
There are also new research findings from the demand side. Nielsen
surveyed more than 27,000 consumers in 52 countries and reported that
almost 80% of the global consumers would no longer use a Web site that
charges. Some 71% say online content of any kind will have to be considerably better than what is currently free before they will pay for it (Nielsen,
2010). Given newspaper publishers enthusiasm for paid content and users
reluctance against it, a timely examination of paying intent is necessary. This
study systematically examines paying intent for different newspaper formats
and seeks to uncover predictors determining paying intent.
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H. I. Chyi
Therefore, this study seeks to examine WTP for different newspaper formats,
addressing the following research question:
RQ2: How much are people willing to pay for different newspaper formats
(print, Web, and apps)?
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can be estimated without directly measuring WTP. This would generate more
realistic results because potential consumers are asked to evaluate a set of
product alternatives defined by different levels of attributes as they would
when making real decisions.8 Therefore, through a conjoint analysis, this
study addresses the following research question:
RQ3: What is the relative importance of format and price when people
choose between different news packages?
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H. I. Chyi
METHOD
A Web-based survey of 767 randomly selected adults (18+ years old)
was conducted during August 3 through 6, 2010 to examine U.S. Internet
users consumption of and attitudes toward online and traditional news
media.
Sample
The sample was provided by Survey Sampling International (SSI), a research
firm specializing in survey research with 30+ years of experience. SSIs North
American online panel consists of more than 1.4 million active households.12
The panelists were recruited from Web communities, databases, mailing
lists, or other collections that have opted-in to participate in online survey
research. SSI seeks to reach both highly visible and hard-to-reach groups on
the Internet, such as ethnic minorities, young people, and seniors, to ensure
that the sample is representative of the U.S. online population (SSI, 2008).
SSI administers surveys by sending e-mail notifications to its panelists, who
were eligible to receive incentives for participation.
Online panel surveys have increased dramatically during the last decade
because of obvious benefits such as the speed, the elimination of interviewer
bias, and lower cost (Fisher, 2005). Compared with random digit dialing,
online surveys allow respondents to choose when and where to complete
the survey, lowering the intrusiveness associated with telephone surveys
and the social desirability effect, but response rates tend to be low (Fisher,
2005).
A random sample of panelists was selected and invited to participate
in the study. The response rate was 4%. This represents a low, but not
unusual response rate for an online survey (Baker, 2010). Empirical studies
gauging the effect of low response rates on telephone survey results found
no statistically distinguishable differences in the vast majority of comparable
items, suggesting non-response does not seriously threaten the quality of
estimates (Keeter, Kennedy, Dimock, Best, & Craighill, 2006; Keeter, Miller,
Kohut, Groves, & Presser, 2000). In this study, the overall sample size
767 respondentsplays a critical role in the stability of the findings as larger
sample sizes tend to produce more reliable sample estimates (Shih & Fan,
2009).
Comparing the survey sample with the U.S. Internet population in terms
of gender, age, income, and education, the author found the sample overrepresented females and those in the lower income categories. To ensure
that the demographic characteristics of the sample closely match the demographic characteristics of the Internet population in the United States, this
study weighted the data to gender and income. The weighted sample size
is 776.
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Survey Instrument
The survey, which took an average of 10 min to complete, focused on the
use of, attitudes toward, and paying intent for traditional and online media.
The questionnaire was developed according to the results of a focus group
of college students, as well as consultations with industry professionals.
To enhance the validity and reliability of the survey, revisions were made
based on several rounds of pretests.
Paying intent for each of the three newspaper formats (i.e., print, Web
site, and news applications [apps]) was measured by asking this question:
Some newspapers are considering charging users for content online in
the near future. How likely is it that you personally would pay for news
and information on the following platforms? (1 is Very unlikely and 5 is
Very likely)
WTP (in dollar amount) for each of the three newspaper formats was
measured by this question:
Assume for a moment that your favorite newspaper is no longer free
anywhere (in print or online). Given this scenario, how much would you
be willing to pay for your favorite newspaper on the following platforms
simultaneously? (You may choose to pay for one, some, or all platforms
as you wish.) (If youre not willing to pay anything, just put 0.)
Website edition (via the computer or mobile devices): $___ per month
News applications (via mobile devices): $___ per application
Print edition: $___ per month
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H. I. Chyi
3) First 10 articles free per week. $0.99 for each additional article in all
ELECTRONIC formats.
4) Buy a day pass, no strings attached at $0.99/day in all ELECTRONIC
formats.
5) A build your own, mix and match subscription menu that covers all ELECTRONIC formats. Content is self-selected by topic (e.g.,
sports + business + local news, etc., or technology + environmental news + education news, etc.). Price: $0.99 per content topic per
month.
6) Monthly subscription that covers all PRINT and ELECTRONIC formats.
Price: $33 per month
Data Analysis
Regression analysis. Because paying intent was measured at the interval
level, OLS multiple regression analyses were performed to examine the predictors of paying intent for three newspaper formats and six payment models
on the other things being equal basis. Based on the conceptual framework,
the predictor variables included demographics (age, gender, education, and
income), news interest, and news use (print newspaper, online news, and
TV news).
Conjoint analysis. The relative importance of format and price was measured by a conjoint analysis. Due to the exploratory nature of the test, a
subsample consisting of 202 randomly selected respondents was asked this
question:
Imagine your favorite newspaper offers the following news packages.
Among the following choices, which would you prefer?
The following are two examples of product profiles used in the study:
These product profiles were randomly generated as the combination of the
following two attributes:
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Profile 1
Profile 2
1. Format (3 levels): print edition, Web edition, and both print and Web
editions.
2. Price (4 levels): $5 per month, $10 per month, $15 per month, and $20 per
month.
The format attribute did not include apps because the penetration rate
of newspaper apps was extremely low at the time of the study.14 When
most respondents had no experience of using a newspaper app on a mobile
device, adding the option would cause confusion and sacrifice the validity
of the analysis. In addition, the price attribute did not include $0 because the
goal of the study is to examine the effect of the paywall.
Each respondent compared 12 pairs of product profiles, and the data
were analyzed with Sawtooths SSI Web software (Sawtooth Software, 2010).
RESULTS
Table 1 compares weighted and unweighted sample distributions to population parameters on key demographic variables. The weighted sample is
reasonably representative of the U.S. Internet population.
This study first examined the extent to which Internet users access
their local newspapers in different formats. When asked, In what format(s)
do you access your local newspaper(s) regularly, 64% of the respondents
reported accessing their local paper in print format, 31.5% said they visited
the newspapers Web site, 7.5% said through Facebook , 3.3% said through
Twitter, and only 2.9% said through a news application (app)that is, more
Internet users access their local paper in print as opposed to online by a
2:1 margin.
As for which format is the preferred format, 58.3% of the respondents
indicated that their favorite format is the print edition, followed by the
Web edition (21.5%). Very few respondents chose Facebook (3.8%), Twitter
(2.1%), or apps (1.8%) as their favorite formats.
RQ1 asked to what extent people are likely to pay for different formats.
Table 2 presents the results. On a 5-point scale, paying intent for the print
format is the highest (2.7, SD = 1.6), followed by the Web edition (1.9, SD =
1.3) and news apps (1.6, SD = 1.1).
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H. I. Chyi
Unweighted Sample
(%)
Weighted Sample
(%)
Gender
Male
Female
48.4
51.6
35.7
64.3
50.7
49.3
Age
1834
3554
55+
33.0
41.2
25.8
29.9
45.2
24.9
28.8
44.6
26.6
Income
< $50,000
$50,000$74,999
$75,000$149,999
$150,000+
36.6
21.0
30.7
11.7
64.3
18.0
14.7
3.0
35.8
20.9
31.0
12.4
40.2
35.3
28.0
29.8
30.0
33.4
31.3
31.3
40.7
223,672,000
767
776
Variable
Education
Did not attend
college
Attended college
Graduated
college+
n
a
Source: Mediamark Research & Intelligence data published by the U.S. Census Bureau, based on adults
18+ years old with Internet access as of Fall 2008.
TABLE 2 Frequencies and Predictors of Paying Intent for Three Newspaper Formats
Variable
Paying Intenta
1 Very unlikely
2
3
4
5 Very likely
M
SD
n
Predictorsb
Gender (female)
Age
Education
Income
News interest
Print newspaper
use
Online news use
TV news use
Model
Adjusted R 2
a
Apps
41.2
7.9
17.9
11.0
22.0
2.7
1.6
776
60.0
12.5
15.0
6.2
6.4
1.9
1.3
776
70.1
10.4
11.3
4.2
4.0
1.6
1.1
776
.062
.059
.071
.025
.237
.247
.108
.223
.012
.007
.132
.068
.084
.338
.019
.041
.086
.131
.127
.078
F(8, 745) = 16.80,
p < .001
.144
.152
.084
F(8, 745) = 16.60,
p < .001
.142
.112
.091
F(8, 745) = 23.20,
p < .001
.191
Web
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Regarding the predictors of paying intent for these three formats, none
of the demographic variables have an influence on the likelihood of paying
for a print newspaper, suggesting WTP for print newspapers is not restricted
to specific demographic groups. In contrast, gender and especially age have
an influence on WTP for the Web edition or apps. Being male and younger
are both positively associated with paying intent for these two online formats.
News interest is unsurprisingly a positive predictor of paying intent for
all three formats. News media use (i.e., print newspaper use, online news
use, and TV news use), in most cases, are positively associated with paying
intent. The only exception is that online news use has a negative impact on
paying intent for print newspapers ( = .127, p < .01), suggesting that
the free online news offerings may negatively affect print readership. This
provides one plausible justification for implementing the paywall plan for
online content.
RQ2 sought to investigate exactly how much people are willing to pay
for these formats. Respondents were asked to specify the dollar amount they
are willing to pay simultaneously for the print edition, the Web site edition,
and apps. Table 3 presents the results. Again, the results suggested that WTP
for the print format is the highest. People are willing for pay more for the
print newspaper ($7.7), followed by the Web edition ($3.1), and then by
apps ($1.5).
RQ3 sought to examine the relative importance of format and price
when people make purchase decisions between alternative news packages.
Table 4 presents the results of the conjoint analysis. The partworths (or
conjoint utilities) represent the utility derived for each level of each attribute
(Chakrapani, 2004). The Web-only edition received a negative utility value
of 1.89, indicating that it is the least preferred level, and the combined
format (both print and Web) is the most preferred (1.40).15 In terms of
price, the utility decreases as price increases. The relative importance of an
attribute is the range of utilities for the attribute as the percentage of the
total of all ranges across all attributes (Chakrapani, 2004). Results showed
that price (ranging from $5$20) has a much greater influence on preference
TABLE 3 How Much People Are Willing to Pay for Their Favorite
Newspaper in Three Formats
Variable
Web
Apps
Dollar amount
$0
$15
$610
$11 or more
M
SD
30.2
26.1
20.3
23.4
$7.7
8.1
%
59.8
28.6
7.5
4.1
$3.1
7.8
76.1
18.9
3.2
1.8
$1.5
4.6
Note. N = 776.
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H. I. Chyi
TABLE 4 Partworths and Relative Importance of Format and Price
Attribute
Level
Description
Partworth
1
2
3
Web edition
Print edition
Both print and Web
1.89
0.49
1.40
1
2
3
4
$5
$10
$15
$20
4.92
1.57
1.35
5.14
Format
Price
Relative
Importance
24.6%
75.4%
Note. N = 202.
DISCUSSION
As newspaper companies continued experimenting with paywall plans
for their multiplatform content, this study examined paying intent for
multiple formats (print, Web, and apps) simultaneously. The findings reconfirmed one of the most disappointing results of the newspaper industrys
experiment with online news deliverythe vast majority of users seemed
reluctant to pay for content online. In sum, multiplatform news delivery has
become a reality, but paying intent for multiplatform news content remains
elusive.
Among all newspaper formats, the print edition outperformed the other
formats on usage, preference, as well as paying intent. Respondents, who
were Internet users, indicated that they were more likely to pay for the print
edition and were willing to pay significantly more for the print edition than
241
.103
.104
F(8, 745) =
12.00, p < .001
.131
.123
.101
.063
.207
.004
.041
.159
.064
63.8
12.0
12.6
6.1
5.5
1.8
1.2
776
4 (Day Pass)
.102
F(8, 745) =
11.70, p < .001
Model
F(8, 745) =
15.20, p < .001
.172
.034
.158
.005
.035
.025
F(8, 745) =
11.80, p < .001
.026
.270
.088
.058
.103
.035
66.6
6.6
15.2
5.4
6.2
1.8
1.2
776
3 (Tiered
System)
.059
.238
.042
.073
.108
.016
69.1
11.5
11.2
5.0
3.3
1.6
1.1
776
2 (Pay Per
Article)
.052
.291
.057
.055
.153
.080
73.3
8.8
8.5
4.7
4.7
1.6
1.1
776
1 (Free iPad )
Adjusted R 2
Model
Paying Intenta
1 Very unlikely
2
3
4
5 Very likely
M
SD
n
Predictorsb
Gender (female)
Age
Education
Income
News interest
Print newspaper
use
Online news use
TV news use
Variable
.129
F(8, 745) =
15.00, p < .001
.170
.094
.058
.253
.026
.025
.099
.107
63.0
10.5
13.4
6.1
6.9
1.8
1.3
776
5 (Customized
Topics)
.132
F(8, 745) =
15.40, p < .001
.019
.052
.082
.103
.002
.090
.197
.283
57.7
11.0
15.0
7.7
8.5
2.0
1.3
776
6 (Free for
Print Users)
242
H. I. Chyi
for the Web edition and apps. In contrast, paying intent for the online formats (Web and apps) was weak, and so was peoples response to the six
variations of payment models for online news access. It is known that the
print edition, despite the shrinking readership, remains the core product for
local newspapers in terms of usage (Chyi & Lewis, 2009; Langeveld, 2010)
and advertising revenue (Newspaper Association of America, 2011). This
study further demonstrated that the print edition would remain the dominant format even in the context of the subscription modelbecause paying
intent translates into subscription revenue. In other words, the paywall is not
going to generate sufficient digital circulation income to challenge the print
editions importance as the primary revenue source.
A closer look at the predictors of paying intent showed that different
factors drive paying intent for different formats. For example, age and, to a
lesser extent, gender, have an influence on the likelihood of paying for Web
and apps, but no demographic variables predict paying intent for print. Also,
considering the higher level of paying intent for print, this suggests that the
online population in general finds the idea of paying for a print newspaper
acceptable. Newer formats, on the other hand, are relatively restricted in
terms of which demographic groups (i.e., males and younger people) would
be willing to pay.
This study conceptualized a multiplatform newspaper as a combination
of two major attributesformat and priceand introduced conjoint analysis, a marketing research method, to online news research. Results showed
that price generates a greater utility than format suggesting that, although
consumers preferred the combined format (online plus print), they were not
necessarily willing to pay more than a certain amount for it. The lack of
enthusiasm for all six payment models also suggested that how users are
charged does not make a difference in paying intent. What seems more
important is whether they are charged or not.
In his book, Free: The Future of a Radical Price, Chris Anderson (2009)
argued that charging even just a penny, a seemingly negligible price, can
stop the vast majority of people from consuming the product because, when
confronted with a price, our brains would raise the Is it worth it? flag.
This penny gap concept (Anderson, 2009, p. 59), together with research
in consumer psychology on the price of zero (Shampanier, Mazar, & Ariely,
2007), helps explain why none of the payment models were well-received.
Regarding the consequence of switching from free to fee, it is almost
certain that the paywall would prevent most users from visiting the site
or downloading the app.16 Even newspaper publishers themselves had
reservations about the revenue opportunity of paid models48% believed
subscription revenues would make only negligible contributions to total digital revenue in the next 12 months (Jenner & Fleming, 2011). So, why would
newspapers pursue the subscription plan, knowing that the paywall may turn
away the majority of users, whom they have always been striving to serve?
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H. I. Chyi
presented here. Second, this online survey was administered among a group
of panelists who received incentives from a commercial research firm. One
plausible source of bias is the attitudinal and behavioral differences between
those who volunteered to take the survey and those who did not (Baker,
2010). Yet, such biases exist to varying degrees in other survey methods
as well, and weighting as a post-survey adjustment technique may have
corrected at least some of the biases (Baker, 2010). Third, the survey was
conducted in August 2010, which was 4 months after Apple launched the
iPad, and the penetration rate of tablets and the availability of iPad apps
were low.18 Therefore, it could be too early to draw conclusions about
peoples paying intent to news apps. Finally, due to the exploratory nature
of the conjoint analysis, only a subsample of the respondents were asked
corresponding questionsyet, the sample size of 202 is not considered
unusual in conjoint research (Orme, 2006).
Future studies should expand the selection of predictors used in the
regression models and improve the design of the conjoint analysis. For the
former, the current models adopted the predictors used in previous studies (i.e., demographics, news interest, and media use) and ignored factors
such as professional needs to keep up with the news or other lifestyle variables that may be stronger predictors for paying intent. For the conjoint
analysis, attributes such as interactivity, multimedia features, and content
orientation may influence consumer choice, and can be incorporated into
the product profile. In addition to product attributes, external factors, such
as existing competition, may also influence the performance of a product.
Many of these factors, however, are newspaper-specific and, thus, difficult
to incorporate into a national survey like this. That is why this study used
the frame of your favorite newspaper to provide respondents with a general, yet realistic, reference point.19 To address these issues, future research
may target a specific newspaper or a smaller newspaper market so as to distinguish users from non-users when measuring their paying intent for each
format.
Taken together, paying intent is in itself an indication of perceived product value, and the future of any product in any format hinges on such value.
Despite the limitations associated with the survey methodology, this study
addressed the fundamental question on the perceived value of multiplatform
newspapers with empirical data, contributing a systematic examination of
paying intent to the recurring industry debate on newspapers revenue
models.
ACKNOWLEDGMENTS
This study was funded by the 20092010 University of Texas at Austin Faculty
Research Grant. Special thanks go to James M. Moroney, III, publisher of The
Dallas Morning News, and Bill Tanner, senior director of strategic research,
245
for offering important advice from the industrys standpoint. I also thank
Jacie M. Yang, Avery Holton, Angela M. Lee, Kelly Kaufhold, and Erin Brady
for their assistance.
NOTES
1. For example, The Times of London, The New York Times, and The Dallas Morning News.
2. The rest were print subscribers who got access for free.
3. As of 2006, The Financial Times was the only major newspaper in the United Kingdom that
charged users for its financial news content (Herbert & Thurman, 2007).
4. It is noted that subscribers of the print edition and of Optimum Cable, which is affiliated with
the newspaper, are allowed free access. Newsday representatives assert that 75% of Long Island residents
either subscribe to the newspaper or Optimum Cable (Koblin, 2011).
5. Price elasticity of demand is defined as percentage change in quantity demanded divided by
percentage change in price.
6. Newspaper use was the only significant factor having a positive influence on paying intent for
online news.
7. In multi-attribute models, price is often conceptualized as a major product attribute (Bass &
Talarzyk, 1972; Erickson & Johansson, 1985).
8. Although conjoint analysis allows for the inclusion of more than two attributes, this exploratory
test focused on two primary attributes, as they are the key factors defining newspapers paywall plans.
In addition, because the data were collected from a national survey, it is impossible to include individual
newspapers characteristics (such as interactivity, multimedia content, etc.) in the analysis.
9. For example, the two Philadelphia newspapers have been offering discounted tablets bundled
with a 1- or 2-year contract for its apps (Seize the Future, 2011).
10. This model is also known as mass customization (Schoder, Sick, Putzke, & Kaplan, 2006).
A small-scale survey of Swedish users reported that 22% of the respondents said they were willing to pay
for personalized news services (Ihlstrm & Palmer, 2002).
11. The Nielsen survey showed that 78% of the respondents believe if they already subscribe to a
newspaper, magazine, radio, or television service, they should be able to use its online content for free
(Nielsen, 2010).
12. An active panelist is defined as someone who has taken a survey within the past 6 months.
13. The six options were not intended to have comparable value.
14. As of January 2011 (that was > 5 months after the survey was conducted), only 11% of the
total American adult population used an app to access local news and information (Rosenstiel, Mitchell,
Rainie, & Purcell, 2011).
15. In this case, they are scaled to sum to zero within each attribute (Orme, 2006).
16. The metered model would be an exception because it affects only heavy users.
17. In addition, in the United States, the penetration rate of the computer is much higher than
that of most mobile technologies, and some mobile devices (e.g., iPad ) also require users connect such
devices to a computer to be activated or managed by applications developed by the manufacturer. So,
surveying Internet users through a Web-based survey means that most mobile device users (who are
potential app users) were included in the sample.
18. Even by April 2011, fewer than 2 in 10 newspapers had a tablet app (Jenner & Fleming, 2011).
19. This frame was used in the questions on willingness to pay for three newspaper formats,
conjoint analysis, and paying intent for six payment models.
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