Bouncing off the Paywall – Understanding Misalignments Between Local Newspaper Value Propositions and Audience Responses |
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| Authors: | Ragnhild Kristine Olsen Mona Kristin Solvoll |
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| Institution: | 1. BI Norwegian Business School, Norwayragnhild.k.olsen@bi.no;3. BI Norwegian Business School, Norway |
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| Abstract: | ABSTRACTDeclining advertising revenue and print copy sales have propelled extensive paywall experiments in local newspapers to generate new revenue and fund local journalism. The success of these experiments is ultimately depending on whether or not they deliver the value that customers require. This article studies local newspapers’ potential to build successful paywalls by conducting a two-sided analysis of paywall value propositions and local news audiences’ responses to these value propositions. Drawing on mixed methods – in-depth interviews with 20 newspaper managers and a national survey (N = 1586) among local newspaper audiences – our study identifies a major gap between intended value of paywalls and customer value perception and behavior. These are misalignments between the intended attractiveness of paywalled content and audience attitude toward this content, and misalignments between access to paywalled content and use. Local newspapers’ offerings are particularly misaligned with younger, lower income and lower news interest customers. When these groups hit a paywall, they most likely bounce off. |
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