The surge in digital news consumption in India has brought to light significant insights about consumer willingness to pay for news. A recent study by Kantar India, conducted with Google, reveals important patterns and challenges faced by news publishers striving to convert users into paying subscribers.
The data indicates that subscribers are motivated by a desire for high-quality and reliable content, with 67% citing these factors as their primary reasons for paying. This highlights the critical role that maintaining journalistic integrity and quality plays in attracting and retaining subscribers. However, the study also exposes considerable barriers that prevent potential subscribers from committing. Issues such as excessive personal data requirements (52%), lack of user reviews (49%), and complex subscription tiers (45%) are major deterrents. Publishers must address these concerns to simplify the subscription process and enhance user experience.
“Indian digital news consumers increasingly crave immersive, more relevant news consumption experiences, creating a prime opportunity for premium offerings. However, the price-sensitive nature of the market necessitates a diversified revenue strategy. What also comes out strongly is that in order to expand the user base, a meaningfully different and well-communicated value proposition is essential,” Biswapriya Bhattacharjee, director – B2B & Technology, Kantar, said.
Discovery channels play a crucial role in acquiring subscribers. The study shows that 60% of subscribers find services through online searches, while 49% discover them via social media. This underscores the importance of a strong digital presence and targeted marketing strategies. Moreover, a clear value proposition (60%) and established content quality (52%) significantly influence subscription decisions. Publishers need to articulate their unique value and prove content credibility to stand out in a competitive market.
“The Indian digital news market is experiencing dynamic growth, driven by increasing internet penetration and an expanding ecosystem of local language publishers. Understanding the nuances of reader revenue models is crucial for the sustainability and growth of digital news. As part of our ongoing efforts to support the news ecosystem, this research provides valuable insights into reader preferences and behaviours, empowering publishers to make informed decisions about their monetisation strategies and build stronger connections with their audiences,” Durga Raghunath, Head of India News Partnerships, Google India, said.
On the other hand, non-subscribers face various barriers, including overwhelming pricing structures (144 respondents), budget constraints (129), and inflexible payment options (122). These factors indicate that publishers need to simplify pricing models and offer more flexible payment solutions. Additionally, non-subscribers often perceive that free content meets their needs, suggesting a disconnect between perceived value and actual content quality.
While traditional subscription models encounter resistance, alternative revenue streams show some promise. For instance, ad-supported content unlocking (24%) and newsletter sign-ups (22%) reflect potential avenues for monetisation. However, the low interest in pay-per-content models (16%) suggests that consumers prefer comprehensive access rather than fragmented content options. Publishers might need to explore hybrid models that blend advertising with subscription benefits to appeal to a broader audience.
Price sensitivity is another critical factor, with 45% of users preferring a small fee for an ad-supported model. This indicates that affordability is a significant concern for many consumers. Additionally, a preference for diverse content formats and language options (63%) points to the need for personalised and cost-effective subscription plans. Publishers should consider these preferences when designing their offerings and promotional strategies.
To boost subscription growth, publishers must simplify pricing structures, improve user experience, and offer compelling value propositions. By addressing barriers faced by non-subscribers and exploring alternative revenue models, publishers can better align with consumer preferences and drive sustainable growth in the digital news market.