How COVID-19 is Changing the Way We Consume News
While the COVID-19 pandemic resulted in mass layoffs at some of the most reputable news media outlets, it has created an increased demand for content and information. News media organizations have had to rediscover their delivery channels in wake of the pandemic. In addition to the traditional advertizer based model, some have adopted subscription based models while others are still relying on user contributions. One aspect of news consumption, however, that has been visible upfront is the shift of consumers from print and televised to online media.
In a time where fake news is rising, being accompanied by intentionally false or misleading reporting and unaccountable viral distribution networks, the responsibility on news media organizations to provide their customers with accountable services has increased. There has also been an entry of independent fact-checking organizations, especially on social media platforms where news media organizations market their services, that have a direct impact on the credibility of the organization. Independent media networks and citizen journalists have been active in combating misinformation and misleading information, which has put the onus on news media organizations to produce more accurate content.
By analyzing the responses of news media organizations to the COVID-19 pandemic, we can identify emerging innovations taking place in the digital space.
Subscription based models
Dan Keneddy, in 2019, stated that, “The days of regularly surfing among multiple free websites are drawing to a close. For any one newspaper to stand out as something to which readers will be willing to buy a subscription, it almost certainly has to offer a wide variety of content.” The New York Times and Wall Street Journal have been industry leaders in effective implementation of subscription models. 70% of New York Times’ 5 million subscribers use only the online service. The trend of reliance on digital subscriptions had been prevalent before the pandemic; digital subscriptions had almost doubled globally between 2018-19.
The paid subscription model puts a price on information. While it does lead to quality journalism as subscribers expect value from their transaction, a common trap that organizations are prone to fall into the trap of following narratives. Journalist Chris M Sutcliffe observed that “many newspapers have decided to lean into tribalism, making it clear that the best reason to support them is that they provide a bastion for a particular way of thinking.”
Since these services are priced in a category where multiple subscriptions become unaffordable for some and require motivation from users to consciously diversify their news consumption, we’re seeing growing numbers of readers relying on fewer sources of information with more than 54% of consumers subscribed only to one news media organization.
Alternative Models
A more inclusive alternative to subscriptions is the user contribution model. The Guardian is a great example of implementing the model effectively. In the year 2018-19, The Guardian made an operating profit of £800,000. A few reasons attributed to this include its universal appeal to consumers both in Britain and abroad. Furthermore,it had the capacity to function at a total loss of £57 million over three years before breaking even. Another interesting insight is how it aims to promote “liberal journalism both in Britain and elsewhere.”
The rising cost of digital subscriptions and the inability to have multiple services has created a new market of bundled subscriptions. There are different ways in which organizations have tackled the market demand for bundle subscriptions.
Inkl, a news media organization based in Australia, offers a bundled subscription of 100+ global news subscriptions including Bloomberg, The Wall Street Journal, Foreign Policy, The Economist, The Guardian, The Independent at a monthly fee of $9.99. On being asked to address the question of avoiding biases and dealing with subjectivity in news, Inkl founder Gautam Mishra said, “At inkl we think about news in terms of whether it concerns a consensus fact-set. When it does (e.g., climate change, impact of vaccinations, issues of inequality) we believe our job is to present that consensus view of the facts.” This method is preferable in combating fake news as it is fact oriented and at the same time offers differing views to its users. One issue that such companies face in operations is the distribution of revenue with multiple partners.
An alternative to the subscription bundle model is the pay-per-article micropayment system. Blende, a Dutch online news service, that offers its users to make micropayments for any article they find interesting. Having partnerships with organizations like The New York Times, Foreign Affairs, and Mother Jones, the service offers Newspaper stories at an average cost of between 19 and 39 cents per article, while magazine stories between 9 and 49 cents. This gives the users agency in selecting the content they find interesting and is more affordable. They have also incorporated a peace finance method as they have an ethical money back scheme where consumers have the option to seek a refund if they do not like the content. Branded as “you only pay for the stories that you love”, the service makes online news consumption more user friendly.
Scribd, a reading subscription organization partnered with The New York Times to offer their content in a $12.99-per-month subscription which gives consumers access to both the more than 1 million books, audiobooks, newspapers and magazines repository of Scribd and digital access to The New York Times. In this case, since the partnership is limited to few organizations, the revenue sharing process is more streamlined and financially beneficial for the companies.
The bundled news system has gained the attention of big tech conglomerates that are looking to enter the space. On March 25, 2019, Apple announced Apple News+, a subscription-based service allowing access to content from over 300 magazines, as well as selected newspapers. Like Inkl, it offers the service at $9.99 and aims to subvert individual subscription paywalls by offering bundled subscriptions.
The landscape of online news consumption is witnessing an overhaul, especially after the COVID-19 pandemic. With the availability of multiple sources that follow different methodologies and algorithms to determine what the user wants to see, it is important for consumers to remain aware of factual information. The user response to bundled subscription is awaited but with the entry of conglomerates like Apple, the question of news curation and delivery will be crucial as monopolistic control over information and news can have major impacts on the consumption of news in the future, and as a result the way we perceive the world around us.
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