Paywall saves Newspaper $369,600

That could be a real headline for local newspapers who take their heads out the sand and think about the real financial implications of a paywall strategy.

Looking at the online subscriber report for one of the newspaper websites that I help operate, I see we had 300 new online subscriptions last month. This is at 17K circulation daily newspaper. (1.76% growth per month) Those are no cost subscription starts. Regular crewed start can cost newspapers as much as $35 each. You probably see where I’m going with this…

Here’s the math I use for the headline example:

• 50,000 circulation daily newspaper puts up a paywall on their website, eliminating free access to their content.

• Churn subscriptions are reduced by 880 subscribers per month (1.76%)

• 880 * $35 per start * 12 months = $369,600 anual savings