The current media landscape offers young media consumers many more choices than, say, 20 years ago. The question of whether young media consumers are willing to pay for news is therefore a relevant one. A new American study by The American Press Institute shows that this is the case. Good news for a sustainable future of the (news) subscription.
The new generation of news consumers the report looked at consists of millennials (ages 25 to 40) and Gen Z (ages 16 to 24). It report ‘Funding News’ examined these target groups, their news consumption and their willingness to pay for news. Nearly 6,000 people participated in the study.
60% of young US media consumers pay or donate to media brands
The research shows that 60% of young American media consumers pay in some way for access to news. This financial contribution varies from (digital) subscriptions, paying for premium content to donations. The older the target group, the greater the willingness to pay for news content. In the youngest group, generation Z (16 to 24 years old), 51% pay. This is 63% among younger millennials (25 to 31 years old). And for older millennials (32 to 40 years old) that is even 67%.
Subscriptions to newspapers and contributions to content creators
The ‘Funding news’ report looked at the different ways young media consumers pay for content. Not only digital subscriptions to news media were examined, but also paper and digital magazines, digital news apps, non-profit news sites, e-mail newsletters (whether or not from independent journalists) and payments to individual ‘content creators’ or ‘influencers’. ‘ via, for example, YouTube or podcasts.
New media formats are more popular with young media consumers
The survey also looks at the most paid or donated forms of news. New media formats are more popular with young media consumers. Young Americans are twice as willing to pay for email newsletters, video channels or audio content – especially from independent content creators – than they are for more traditional news sources, such as newspapers, magazines and broadcasters. That is 47% and 22% respectively.
Advice to media brands
The report contains useful advice for traditional media brands to take a good look at alternative revenue models and alternative ways of working on recruitment and retention among young(er) target groups. News organizations can learn a lot from the appeal that influencers and independent news and content makers have on young people and the use of their channels. While many Gen Z and millennials pay for or donate to traditional media brands, such as newspapers, magazines and broadcasters, nearly twice as many young media consumers have paid or donated to support content from independent content creators. It will do traditional media brands good, the report argues, to evaluate why that is. Whether it’s the authenticity of individual creators, the formats or channels they use, the content of their news selection or the way in which these ‘new’ news brands make their content accessible and the associated revenue models.
What is the situation in the Netherlands?
Prepared in the Netherlands NDP News Media, the trade association of new brands, carried out extensive research into the composition of Dutch news subscribers. The first results are expected in May 2023. Until then we have to make do with the graph below. This shows that it is mainly the over-50s who opt for a newspaper subscription (digital or otherwise) and that the over-65s in particular are most willing to take out such a subscription. The younger target group prefers news consumption via sites or apps.
Photo credit: Toa Heftiba through Unsplash