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The vast reach of content these days, and its availability, have led to paywalls as an essential tool for content creators and businesses alike. However, paywall is a term that we hear, but what is a paywall, and how does that affect how we consume content online? You want to know whether paywalled content is for you: No matter if you’re a publisher who needs to monetize your site, or a curious consumer keen to find out what’s good and what isn’t about paywalled content, this guide is for you.
What is a Paywall?
The paywall is a digital barrier that prevents people from accessing certain online content, which includes websites and blogs of news outlets or a streaming service. The content behind the paywall means only users having a paid subscription or membership can view it. In other words, it’s a gate that protects premium content, requiring the reader or viewer to pay before they are allowed to see it.
Companies that create high-quality, expensive to create, content that requires a sustainable revenue model often use paywalls. For instance, The New York Times uses paywalls for its exclusive journalism and Netflix paywalls for its TV shows and movies.
Types of Paywalls
Paywalls are not necessarily equal and not imposed in the same way in all businesses. Let’s break down the most common types:
1. Hard Paywall
Hard paywall completely cuts off all access to any content, unless a user purchases a subscription or membership. High-demand, premium content tends to be the kind of content this type of paywall is used for. An example is Netflix, who have to be paid for any content. These hard paywalls create strong control for content while shooing away casual readers who aren’t ready to commit to a purchase.
2. Soft Paywall
Soft paywall means they let you download some free content and ask you to pay for it. This is an especially great way to draw new visitors to your content so they can ‘try it out’ before subscribing. Many news websites including The Washington Post use soft paywalls to incentivize readers with a few free articles a month.
3. Metered Paywall
A metered paywall is where a limited number of free articles or pages are available in a specified period, usually a month, with all others needing to subscribe for more. All news outlets like The New York Times support this option, they offer a limited number of free articles per month and then you will need to pay for the rest.
4. Freemium Model
The freemium model is when one part of the content is always available free of charge, while the rest of the content is closed to the user or called paywall. Some of the content is free to use, but in exchange, the users are asked to upgrade to enjoy better content. A software service that has taken up this model is Spotify, where there are basic features that come for free, until you upgrade which strips the ads and provides better function.
Why Use a Paywall?
For the sake of keeping their business afloat, content creators will need paywalls as their go-to. Here are some of the top reasons for implementing a paywall:
1. Revenue Generation
A paywall is one of the obvious ways to directly start generating revenue. Receipt of recurring subscription or membership fees may make the income more reliable than can be generated only by advertising. Take for example, many online pubs have decided to force readers to pay up for them to view the material after it becomes apparent that ads are no longer enough to sustain their businesses following the ever-growing adoption of ad blockers.
2. Sustainable Business Model
A paywall protects the quality of the content produced. It allows the business to move the focus on the audience rather than the advertisers and reduces advertisement income that is dependent on the ads’ fluctuation. By putting a paywall on your content, you’re charging the users who gain the most from your content directly.
3. Increased Engagement
Engagement with the content often occurs when users are willing to pay for it. The fact is, if you invest in the people who choose to subscribe to your content, they are more likely to become loyal followers who appreciate what you bring to the table and commit to your followership more. You can also use the exclusivity behind a paywall to help you build a stronger community.
4. Personalization and Data Insights
For businesses, paywalls are a direct link between the business and the audience, churning out valuable data insights into user behavior. If you’ve got subscription patterns, content consumption, and churn rates — you can learn to serve your paying audience better by tailoring your content offerings. Knowing what your subscribers care about most can help you achieve higher retention rates and healthier overall user satisfaction.
In Examples of Paywalls in Action.
One of our favorite essays is offered by Columbia journalism grad Mischa Beigel on the pernicious effects of paywalls and their inevitable rise.
Building on the success of paywalls from news organizations and entertainment platforms alike, many industries have successfully implemented paywalls. Let’s take a look at some case studies where paywalls have worked well:
1. The New York Times
The New York Times was an example, having taken a metered paywall in 2011. Users can read a specified number of articles each month and are then prompted to subscribe. The publication has managed to remain solvent and retain its reputation for quality journalism by doing the above. Today, The New York Times has millions of paid subscribers.
2. The Athletic
The Athletic is a subscription service that covers the sport without advertisements. They’ve created a devoted subscriber base by serving up focused, in-depth sports journalism. They’re one of just a handful of sports news brands to successfully execute a paywall strategy in such a crowded landscape.
3. Spotify
Spotify is a freemium model service, where users can listen to music, and podcasts for free with ads, or pay for an ad-free Spotify Premium and extra features. In setting it up, this model has found just the right balance between preference for paid and free access, while the paid tier has enough value to make the cost worth it for many who subscribe.
Before implementing a paywall, it is important to consider the following:
While paywalls can be a great source of revenue, there are a few factors you should consider before deciding to implement one:
1. Audience Expectations
Will your audience want to pay for your content? However, it’s likely to be hard to convince users to subscribe if similar content is free elsewhere. To be successful, you need to provide high-quality, unique content that adds value and differentiates you from competitors.
2. Content Strategy
Choose what kind of content to gate behind your paywall. If it is longer, in-depth pieces such as reports, e-books, and video courses, it is better to paywall it, but keep short blog posts free of charge to attract new readers.
3. Pricing
Getting the right price point is key to making sure your paywall doesn’t push away potential customers while raking in revenue. From experimenting with different subscription levels to even offering trial periods when it comes to the subscription, you’ll know what works best for you.
Conclusion: The Future of Paywalls
In the digital content ecosystem, paywalls are formidable tools for both sides of the business. They allow content creators to reward their work without losing control over their audience. Paywalls make it possible to bring premium content to audiences across newspapers and streaming platforms and help businesses generate sustainable revenue. Learning what type of paywall would work for your way of doing business and your business goals helps you create a strategy that is good for both your brand and your audience.
Paywalls may not be the best solution for all websites, but increasingly, they are the prevalent means of protecting and monetizing valued content. Having the right approach, a paywall can help you form a sustainable business and ensure that members of your audience continue to receive excellent, exclusive content.