Subscriptions versus Advertisings: Community Newspaper Business Models in a Digital Age (2016)
Undergraduate: Randall Short
Faculty Advisor: Chris Roush
Department: Journalism & Mass Communication
With readers shifting to digital news consumption rather than print, community newspapers must respond by attempting to monetize digital offerings. When constructing an online business model, community newspaper executives weigh the relationship between advertising rates and subscriptions.
Offering free online content will boost traffic, allowing papers to charge more for advertising. Pay walls will lower traffic but generate subscription revenues. My research conducts case studies of three community newspapers with different online business models to examine the strategies and considerations behind the business model decisions. I interviewed executives from the three newspapers to understand how community newspaper executives set online strategies.
The Rutland Herald in Rutland, Vermont, has a hard pay wall. The Pilot in Southern Pines, North Carolina, has a leaky pay wall. The Whiteville Reporter in Whiteville, North Carolina, has no pay wall.
Readership demographics, readership behavior and the traditional role of the papers in the community all factor into the business model decisions. While print remains the primary revenue driver and priority for community newspapers, executives are also generating revenue from new avenues created from digital content. For example, community newspapers are leveraging their advantages in content creation and expertise within the community to start digital ad agencies that serve local businesses.