Four things to remember when launching digital subscriptions

Launching a digital subscription service can be exciting and challenging for any media organisation. Amid the dire financial situation of media, especially small ones, digital subscription is often seen as a way to forge a more direct and financially independent relationship with the audience.

However, this journey also presents significant challenges, such as the need to carefully manage both internal and external expectations. Internally, teams must navigate the technical complexities of integrating subscription systems, create compelling and exclusive content, and nurture a culture of patience and persistence, recognising that building a loyal subscriber base takes time.

Externally, organisations must effectively communicate the value of their content to potential subscribers, differentiating themselves in a crowded market and convincing readers that their journalism is worth paying for. Balancing these demands requires strategic planning, continuous audience engagement, and a deep understanding of user needs and behaviours.

In July, I discussed all of these points with Paweł Nowacki, a digital subscription expert who has been mentoring many Polish media outlets in launching digital subscription models. He argues that before launching any subscription model, newsrooms should understand how close their audience is to their product. If users primarily access a news website via social media channels rather than directly, it indicates that the user is still tied to platforms like Facebook or X, rather than being a true user of the news website. Given the reduced traffic from Facebook, newsrooms need to invest in building a direct relationship between the audience and their product – whether it is the website, newsletter, or any other service.

While we discussed many aspects of digital subscriptions, I identified four key points to keep in mind when launching a digital subscription model:

1. Digital subscription is not a sprint, but a marathon

Months of preparation culminate in the big reveal, with hopes high for immediate success. However, the reality often contrasts sharply with these expectations. Managing team expectations and maintaining motivation is crucial, as the audience’s initial reaction might be just a fleeting glance among countless other daily distractions.

To navigate the complexities of digital subscriptions successfully, it is essential to adopt a strategic and patient approach. Nowacki advises focusing on small, specific goals rather than attempting to tackle everything at once. For instance, a primary goal might be to increase the number of registered members before moving on to other objectives. This methodical approach helps keep the team focused and motivated, ensuring that progress, no matter how gradual, is consistent and measurable.

“Digital subscription is not a sprint, but a marathon,” argues Nowacki, adding that the goal of making the model work should be a shared goal among the team, not just a department. Patience and consistency are crucial, as is understanding the value of your content to make people willing to pay for it.

The recent Digital News Report emphasises this by arguing that news organisations must showcase their value to audiences, demonstrating why they are worth paying for. “The industry has many different techniques to encourage people to pay, but they will only do so if it enriches their lives.”

2. Package journalism as a service

According to a 2020 poll by the International News Media Association (INMA), 38% of news managers prioritised product decisions based on their gut feeling over research or data; 15% admitted doing what the boss told them to do. The article highlighted a disconnect between news providers and their audience, with many organisations failing to actively understand reader preferences and needs.

A recent study on audience preferences and willingness to pay for media across five countries – Bulgaria, Hungary, Poland, Romania, and Slovenia – showed that independent media in these countries have the opportunity to reach large untapped audiences willing to pay for news but currently don’t. Apart from many valuable insights, the report highlighted that these untapped audiences’ interests often go beyond national news, including specific topics such as health, technology, and science. The report suggested that these media should consider aligning their content more closely with audience preferences.

This suggestion is emphasised by Nowacki. He argues that the key to digital subscriptions is understanding your users’ needs and then tailoring your content to meet those needs. For him, niche media, such as specialised or local outlets, might have a better chance of succeeding in digital subscriptions than national ones.

Nowacki emphasises the need for news media to understand how their content is useful to their readers: could it serve their professional interests? While national news can be accessed via multiple sources, a newsroom should distinguish its product by fulfilling another need. For instance, he takes the example of a specific audience: veterinarians. If in Poland there were 40,000 veterinarians and a newsroom tailored a newsletter specifically for this audience group, even if only 10,000 of them subscribe, it would be a remarkable success.

“They need this content for various reasons, such as important information, interviews, or investigations. The crucial question is the role your content plays in the user’s life. Is it for private decisions, family matters, or entertainment? It’s essential to delve deeper into understanding user behaviour first and their needs second,” argues Nowacki.

Changing everything in content won’t help if we don’t understand user needs

Paweł Nowacki, a digital subscription expert

“For example, in my previous experience, people expected quick results from good content. After a year, feedback indicated the content wasn’t worth paying for.”

Members need to feel their needs are rightly heard.

3. Make your subscribed users feel exclusive

One of the publishers that Nowacki mentored in Poland, implements a strategy that involves treating users as premium clients by sending them articles via newsletter before they’re published on the website. “They say, ‘Hi guys, this is our exclusive information. You’ll get the whole story in your email this evening, ahead of tomorrow’s publication”, Nowacki tells me. 

However, Nowacki argues that once you have users onboard, you have to make them feel exclusive, not just approach your content as exclusive. There are many ways to do so. For instance, Denník N, a media outlet in Slovakia, which has been digital-native from the beginning and whose revenue comes from subscriptions, has over 50 newsletters for specific topics. This has allowed its journalists to build their audiences, Tomas Bella, Denník N’s Head of Digital, told Nowacki in an interview last year.

In a 2021 poll by INMA, only 26% of news managers said they segmented readers by behaviours. INMA says it is risky to view readers as a single entity and assume that everyone needs the same content.

“They are exclusive, not just the content. Treat them as premium clients. This is special for them. Provide them with exclusive information tailored to their situation – sometimes special investigative journalism, other times games, podcasts, or videos. Exclusivity means special offers just for them, like a special card,” says Nowacki.

On top of providing what audiences need, make sure it is easy for them to access.

4. Simplify the process

Sometimes, the registration or subscription process takes too long, and users might stop midway. According to INMA benchmarks, the main culprit might be the request to create a website account at the beginning of the checkout rather than after paying – 85% of users dropped from the checkout when asked for a password.

Nowacki suggests ensuring an easy registration and payment process gives a better chance of success. 

“For instance, in one media outlet using an external CMS system, users paid for digital subscriptions. By examining the purchase path from content to payment, they identified areas for improvement. Simplifying the process, such as removing unnecessary steps, increased subscription completions by 30%.”

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