Data is not revealing any sign of a subscription fatigue in news, Greg Piechota, INMA Readers First Initiative lead, said during the recent Subscriber Acquisition Master Class: “The subscriptions basically tripled in the past five years. The sales basically doubled and the churn stayed below 5% monthly.”

According to INMA research from 2023, brands with more than 20,000 subscriptions saw not only the volume of digital subscriptions growing but they’re also growing total revenue by a rate of 46%. This suggests that despite low prices, brands are ending up with much higher acquisition and total revenue from subscriptions.

“Under the hood, of course, is a complex mechanism to increase prices and renewal points,” Piechota said. “So traditional publishers will be looking at engagement of users and then they will basically step up prices depending on the level of their engagement.”

During the Master Class, media leaders from Times Internet, Blick, and The Philadelphia Inquirer shared how their companies are using technology to power their paywall strategies and increase conversions.

Times Internet sees success with its AI-driven hybrid paywall

At the heart of Times Internet’s success is its AI-driven hybrid paywall, which optimises subscription offers by considering four factors: the user, content, price, and time (in terms of context). These factors are analysed to deliver the right paywall experience at the right moment, ensuring higher conversion rates, Puneet Kukreja, vice president of product and reader revenue for Times Internet, said.

AI algorithms categorise users into cohorts such as loyal subscribers, fence-sitters, and window shoppers to personalise the subscription approach. Similarly, content is segmented into exclusive coverage, stock market tools, and commoditised news to match the users’ interests and payment readiness. Pricing strategies range from introductory offers and free trials to international pricing, while contextual factors like the time of day or platform (Web, app, or newsletters) further refine paywall decisions.

“With Al, we will be able to do things at a much better scale at a much better depth,” Kukreja said.

This system has proven to be effective in maximising revenue and improving user experience. Key performance indicators (KPIs) such as stop rate conversion, average order value, session time, and active days are closely monitored to strike a balance between revenue growth and minimising user dissatisfaction. For example, while AI focuses on increasing subscription rates, it also tracks user engagement metrics to ensure users don’t feel alienated by intrusive paywalls. This dual approach helps Times Internet maintain a balance between revenue goals and user retention.

Blick intrigues readers with its cliffhanger paywall

Swiss news outlet Blick found itself in the midst of balancing act: Deciding what to offer for free and what would go behind a paywall, while also managing users’ expectations of why they had to pay for something they were previously getting for free. Plus, it also had to put the right user experience in place to make the experience seamless and easy for the customer.

The answer to all concerns was a cliffhanger paywall.

“By building intrigue, we draw readers into the story, making them feel like they are hanging on the edge” Laurène Chevalier, head of digital subscriptions, said. “This paywall strategy doesn’t just tease, it needs to create a sense of exclusivity and promises a rewarding experience for those who continue the journey with us.”

In order to see if the cliffhanger approach would be successful, Blick began with usability testing, asking people to respond to different designs and describe what benefits they saw. A registration wall was implemented first to minimise risk, and then content was increasingly placed behind the wall. With 42,000 new people registered and the log in rate at 15%, Blick introduced the cliffhanger paywall.

Now, Blick is A/B testing aspects like trial length and trial price. Overall Chevalier said some of the most valuable lessons they learned through this journey, which only started in 2023, were that innovation is key in a competitive landscape: “Staying ahead means constantly exploring new ways to capture and retain reader interest.”

Predictive models help The Philadelphia Inquirer select content to entice subscribers

The Philadelphia Inquirer recognised the need to evolve from a one-size-fits-all metering strategy to a more sophisticated and dynamic approach, Darya Ushakova, senior vice president of consumer marketing, said. The prior metering system allowed users a limited number of free articles but didn’t consider individual reading habits or preferences.

“So then we moved to what now is an incredibly complex monetisation engine,” Ushakova said, explaining it introduced premium stories in 2021 and 2022.

In 2021, The Inquirer began using Sophi, which uses predictive models to determine which pieces of content are the best candidates for attracting subscribers. It took a hybrid approach, with Sophi making recommendations and a human making the final decision. Today, it uses two Sophi products — the content paywall and the dynamic paywall — to determine which stories should be locked and unlocked. That has led to 10% of the premium content driving 20% or all direct article conversions.

“It is important to remember that ultimate decision-making power is still in the hands of the newsroom,” she said. “Even though we have Sophi, they have all the tools they need to be able to override their decisions. So if they want to set a story as absolutely free, they have the tool to do that right out of the gate.”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .