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Professor Neil Thurman and Dr. Bartosz Wilczek conduct research at the LMU Institute of Communication Studies and Media Research. Their research focuses on the impact of the internet and artificial intelligence on news production and consumption. Is journalism currently in crisis? Bartosz Wilczek: We are witnessing a decline in specific revenue streams, especially in the case of newspapers where print revenue is decreasing. Online advertising is not an effective means of funding digital content. The decrease in newspaper income leads to less funding available for creating news content, resulting in a lack of coverage on important topics. Some areas are even experiencing news deserts. Neil Thurman: Furthermore, not only do we have less news, but people also consume less online compared to traditional print newspapers. In the past, individuals would spend more time reading professional news content in print. Online newspaper readers now only spend a few minutes on average per month with online titles. One reason for this shift is the abundance of alternative content available online, which may lead to a decrease in overall knowledge on certain topics. When we consider the proportion of online advertising controlled by big tech companies, it is a significant share. Currently, both Facebook and Google individually generate more online advertising revenue than all the newspapers, magazines, radio stations, and cinemas in the world combined. These newcomers have economies of scale and extensive user data, making it difficult for newspapers to compete. Additionally, people are less inclined to subscribe to digital newspapers compared to their print counterparts. Currently, newspapers are recognizing the need to rely less on online advertising income and instead focus on obtaining online subscription revenue. Why are people less willing to pay for the same content online as in print? Wilczek: Print newspapers were typically paid content, while the internet initially offered free content. This “free mentality” makes it challenging to change the payment mechanism. Transitioning from a price of zero to any price at all is a difficult change to make. Thurman: Additionally, when purchasing a print newspaper, you receive something physical, which psychologically makes a difference. The simplicity of the payment process is also worth considering. While it is relatively easy to make micro payments for items from large online retailers, there are still barriers when it comes to subscribing or paying for a newspaper. What are the various approaches to funding online journalism, and how do they differ? Thurman: There are four main ways to fund online news. Firstly, there is the option of people subscribing, where a paywall limits access and the only way to bypass it is by making a payment. Secondly, there is advertising. Some sites rely solely on advertising revenue, but they need to attract a large number of visitors, often resulting in producing a significant amount of content that appeals to a wide audience. Another funding method is through donation-based models, where sites do not force people to pay but instead invite donations. Lastly, there are sites funded through philanthropy, with foundations, crowdfunding, or wealthy individuals paying for the content. Many platforms use a combination of these four methods. Germany has a system where society collectively pays for public broadcasting. Is this present in other countries as well? Thurman: Yes, for example, the BBC funds its news website through television licenses. However, newspapers often see this as unfair competition. In Germany, the newspapers successfully lobbied the government to restrict publicly funded online news publishers from writing articles longer than a certain word limit to protect the market share of newspapers. In contrast, the BBC Online News website in the UK has been highly innovative, extensive, and offers a wide range of content, including lengthy articles and various forms of media. It has attracted a large audience. Some argue that it provides high-quality and balanced journalism for free, which is beneficial. However, for some newspapers, having a publicly funded competitor is not welcomed. You recently conducted a study on online journalism and people’s willingness to pay for online content. Could you provide more details about it? Wilczek: Previous research has focused on understanding the demographics of those who pay for online news, such as age or income levels. However, there hasn’t been much research on how advertising messages can impact people’s willingness to pay for online news. Our study fills this gap and examines the effectiveness of different appeals in motivating users to pay for online content. We focused on the implementation of paywalls and online subscriptions, specifically studying the communication surrounding them. We explored four types of messages or appeals: The digital-specific appeal highlights the advantages of accessing news exclusively online, emphasizing additional benefits such as personalized news or quicker access to information. The social appeal emphasizes that subscribing to online news allows one to be part of a community, engaging in online forums, discussions, and attending events. The price transparency appeal informs users about the critical situation of the media industry and the need for paywalls. The normative appeal emphasizes that subscribing supports independent and watchdog journalism, appealing to users’ altruistic motives beyond the product itself. The results showed that a combination of the normative appeal and the price transparency appeal was most effective in motivating users. This result is particularly interesting because it suggests that altruism is important to consumers of online news. Contributing to journalism as an important part of society by paying for news seems significant to them. What is your vision for the future of journalism? Wilczek: Journalism provides essential information for citizens to make informed decisions on economic and political matters. In an ideal scenario, journalism would continue to improve, remaining relevant and adapting to the latest technologies, fostering innovation. Thurman: It would be highly desirable to see journalism sustain itself in a way that allows the production of a wide range of high-quality journalism, free from undue influence from undesirable sources. While philanthropic or government funding can be part of the funding mix, they come with their own challenges. Therefore, finding a sustainable business model that allows independent journalism to thrive is crucial. More information: Paper: Subscribe Now: On the Effectiveness of Advertising Messages in Promoting Newspapers’ Online Subscriptions Provided by Ludwig Maximilian University of Munich Citation: Q&A: What increases people’s willingness to pay for online journalism? (2023, July 7) retrieved 7 July 2023 from https://phys.org/news/2023-07-qa-people-willingness-pay-online.html This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
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