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Publishers Need Multichannel Subscription Models

Charging For Online Content Is Just One Part Of A Multichannel Product Strategy

November 10, 2009

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Authors

  • By Sarah Rotman Epps
  • with Mark Mulligan,
  • Erik Hood

Why Read This Report

Newspaper and magazine publishers' current monetization models are broken: They are overly reliant on the "free" model of having advertisers subsidize consumer usage. But shifting more of the burden of payment to consumers is no easy task. In this report, Forrester identifies key data insights from a mail survey of 4,711 US consumers for publishers rethinking their monetization strategies. We find that there is a minority of consumers that's willing to pay for content access, but those consumers can't be identified by demographic segmentation alone; publishers must use engagement metrics to target the right consumers with the right offer. And what that offer is will vary: While some consumers say they'd prefer a multichannel subscription bundle, others say they'd consider a single-channel subscription or micropayments. While some consumers voice a preference for Web delivery, others prefer access via mobile devices like phones, eReaders, and netbooks. This leaves publishers with a mandate: Invest in the organizational and technological backbone to execute a cohesive, cross-channel product and pricing strategy — or watch your business dwindle.

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Table of Contents

  • Publishers Need New Monetization Models
  • Consumers Want Multichannel Choice
  • Demographics Alone Won't Pinpoint Those Consumers Who'll Pay
  • WHAT IT MEANS

  • Flexibility Is Key To Serving A Market In Transition
  • recommendations

  • Publishers Need Cohesive Multichannel Product And Pricing Strategies
  • ALTERNATIVE VIEW

  • Forget Consumers, Forget Advertisers: Find A New Third Party Who'll Pay
  • Supplemental Material
  • Related Research Documents

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