Reuters, CNN add website paywalls
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Illustration: Sarah Grillo/Axios
CNN and Reuters both announced paywalls on Tuesday, bucking the recent trend of major news sites pulling back from paid content.
Why it matters: For outlets with huge audiences online, there's little downside to asking their most loyal readers to pay.
Reality check: A slowdown in the ad market for traditional media publishers has made it harder for news sites to sell out their inventory.
- Sacrificing a few million advertising eyeballs for the potential upside of gaining more reliable revenue from subscriptions could make economic sense.
By the numbers: CNN averaged 159 million monthly unique visitors worldwide in 2023 across mobile and desktop, making it one of the most trafficked news websites globally.
- Reuters' consumer-facing website reaches up to 50 million monthly unique visitors on average, it said.
Zoom in: Both companies will allow users to access a certain number of articles before being confronted with a paywall. CNN's subscription will cost $3.99 monthly. Reuters' will cost $1 per week.
- Of note, both CNN and Reuters have been collecting user data through registration walls, which force readers to submit their email addresses to access free content.
- Those types of data collection efforts make it easier for publishers to price out potential subscription offerings.
The big picture: The tempered subscription strategy of offering readers cheaper packages compared to premium sites like The New York Times is part of a broader pivot within the news industry to more flexible paywalls and membership programs.
- The Atlantic shifted from a blanket paywall to a more dynamic approach early last year.
- Gannett, the U.S.' largest local newspaper company, began reducing the number of articles behind its paywall in late 2022 to boost the company's ad revenue.
- Time fully removed its digital paywall last year in favor of reaching a broader audience with more ad-supported content.
What we're watching: The Verge is eyeing a possible subscription, journalist Oliver Darcy reports.
