It has been claimed that we are reaching a saturation point in paid subscriptions within the Korean market. I find such assertions to be exaggerated and premature, particularly considering that less than 10% of the population in this country has ever paid for digital news or content. While it is plausible that some individuals may exhibit negligence in addressing this matter, I anticipate encountering significant disagreement on this perspective, highlighting the inherent difficulty of the task at hand.

A thought-provoking paper originating from Norway(Borchgrevink-Brækhus, M., & Moe, H.,2023) sheds light on the qualitative study examining why young individuals perceive paid subscriptions as burdensome. As you may be aware, the Nordic region stands as a notable example of heightened engagement in paying for digital content. According to the Digital News Report 2023, Norway boasts the highest rate of online news payment worldwide, surpassing the global average by 17%. This exemplifies a mature region in terms of news subscriptions.

Young adults aged 26-30 in Norway are grappling with the pressures and fatigue associated with paid subscriptions, and researchers have identified three primary reasons for their reluctance to pay for news.

1. Lack of exclusivity: They perceive that similar news can be found elsewhere free of charge, prompting them to explore alternative sources and delve into social media comments. Interestingly, an excessive degree of exclusivity can lead to the perception that if other media outlets are not covering a particular topic, it is deemed unimportant.
2. Excessive time investment in subscriptions: During the experiment, the young participants subscribed to subsidized services for approximately a month. However, they found it burdensome to meticulously read the articles they paid for, which resulted in increased time spent consuming the news to justify their expenditure. Consequently, they found the experience mentally draining.
3. Unattractive paywall models: Norwegian media outlets, like their counterparts worldwide, employ either metered or premium paywalls, which are deemed incompatible with the browsing habits of younger individuals. Since they typically read only 2-3 articles per month, they feel that unless the charges are proportionate, they are paying an excessive amount.

It is worth noting that this qualitative study focuses on young people in Norway, a country where paywalls have matured, indicating that they may encounter the paywall ceiling earlier than we do. However, the study does not delve into the efforts made by journalists to overcome this challenge. Instead, it highlights the significance of "multi-perspectivism" among young individuals, emphasizing their desire to freely explore various news sites and consume diverse perspectives, as opposed to being confined to a single news organization through paid subscriptions.

Lowering promotional prices for paid subscriptions

Let's move on to another study, which is even more interesting if you read it in the context of the habits of young people I mentioned earlier. It's from a company called Toolkit, and they surveyed 100 of the most popular subscription sites in the U.S. They say that promotional prices for paid subscriptions have dropped by 43.4% over the past year. They cite three reasons for this.

• Converting new subscribers has become increasingly difficult amidst economic uncertainty. Consumers and businesses alike are tightening their grip on spending, forcing publishers to lower the barriers to entry for subscription services.
• Publishers' subscription businesses are in the growth phase of their lifecycle. As consumers become more comfortable with the concept of paying for digital publications, many publishers are in first-to-market mode to maximize their market share and subscriber base.
• Competition for consumer attention is heating up. The proliferation of subscription products is forcing publishers to compete more aggressively for consumer attention, which is driving down prices. Publishers recognize that ongoing engagement is a prerequisite for building long-term subscriber relationships, and that low costs and long introductory periods are essential as consumers increasingly evaluate their options.

Now, let's connect this trend with the behavior of young Norwegians we discussed earlier. Building loyalty among young individuals is a long-term endeavor. As observed, they are unwilling to pay high prices for accessing a mere 2-3 stories per month. Consequently, publishers are compelled to focus on cultivating habits by reducing promotional prices and extending enticing offers. The findings from the Toolkit study provide a comprehensive overview of the current landscape, which has resulted in the lowering of promotional prices.

Here are some key statistics from the study:

• 66% of the subscription sites surveyed offered a discount period lasting three months or longer.
• The average duration of the promotional period was 5 months (equivalent to 22 weeks).
• The majority of sites (88%) provided a paid trial period, while 12% offered it for free.

High-profile, high-value networked memberships

Audiences often exhibit resistance towards paying solely for content, which doesn't diminish its value but affects their willingness to pay for it. This is a challenge you are familiar with, having experienced it firsthand. However, networking and membership models tend to generate a higher willingness to pay. Journalists attempting to overcome the paid subscription ceiling should consider exploring these membership-based products.

One notable startup in this domain is Chief, a women's leadership network. They offer a membership that can cost up to $7,900 per year. Currently, they have a subscriber base of 20,000 individuals, resulting in an impressive annual revenue of $130 million, which roughly translates to nearly $200 million. Recently, Chief secured a $1 billion valuation due to its success, with a valuation-to-revenue ratio of approximately 6x.

Here's how Chief describes its mission:

Chief is specifically designed to assist C-suite executives, senior executives, and talented VPs in strengthening their leadership abilities, expanding their influence, and laying the groundwork for cultivating a supportive community.

To achieve these goals, Chief provides various benefits, including access to their sophisticated clubhouses located in New York, Chicago, Los Angeles, San Francisco, and London. Additionally, they offer executive coaching, career workshops, in-person meetings, a job board, and speaking sessions. Notably, their speaking sessions feature prominent figures in the business world, including Michelle Obama. The strategy of Chief revolves around facilitating networking and socialization among women in high-powered positions, which they offer as an additional fee-based service.

Chief serves as a prime illustration, yet it is just one among many instances of paid membership-based community sites that are emerging extensively. I came across a map showcasing numerous similar examples, revealing a surprising abundance and diversity that surpasses initial expectations.

Interestingly, the exclusive community model is not a recent phenomenon; it has existed for a considerable duration. This approach not only brings you closer to achieving your business objectives but also elicits a greater willingness to pay compared to traditional paid subscriptions. Admittedly, managing and operating such communities can be costly and susceptible to unexpected conflicts. However, overlooking this model in your retention strategy would be remiss, as it effectively addresses the limitations of paid subscriptions. It is an established business model that has proven its effectiveness.

The crucial factor lies in cultivating a robust fan base. If you have successfully cultivated a devoted following through paid subscriptions or have garnered significant loyalty through your other content offerings, you can leverage that trust to establish and manage paid community memberships. However, it is essential to meticulously design these memberships to ensure seamless integration and connection with existing content and services.

Paid subscriptions have room to grow

When inquired about their payment for online news in the past year, South Korean audiences indicate that approximately 11% have done so. This figure represents a decline compared to the previous year, while the United States has witnessed an increase from 19% to 21%, and Japan remains stagnant at 9%.

Now, the question arises: how should we interpret these statistics? There appears to be a prevailing inclination to assume that Korean audiences simply do not have a desire to pay for news in the first place. However, I view it differently. I firmly believe that there exists a considerable willingness among individuals to pay for high-quality news and news-related services. Some may perceive this perspective as bold, but it stems from my personal experience. I am gradually realizing that confining oneself solely to content will inevitably lead to reaching a ceiling swiftly. By continuously exploring and researching the needs and preferences of Korean audiences, it becomes possible to identify the desired content and services. By intertwining and integrating these elements effectively, I am confident that the subscription ceiling can be shattered, especially if a diverse range of marketing techniques are employed.

The world is undergoing dynamic transformations, and by implementing technical and policy measures that facilitate easy unsubscribing and alleviate the pressure associated with maintaining a subscription, it becomes feasible to foster long-term subscriber retention. Additionally, by linking education and face-to-face networking to the subscription fee, and incorporating a flexible a la carte sales model, the barriers to willingness-to-pay can be significantly lowered. I would greatly welcome witnessing more national media organizations break through the subscription ceiling by employing the research and examples I have presented.

References

• Borchgrevink-Brækhus, M., & Moe, H. (2023). The Burden of Subscribing: How Young People Experience Digital News Subscriptions. Journalism Studies, 1-18.