Why won’t some people pay for news?
niemanlab.org
niemanlab.org
Unless you are a high level political operative or a day trader, the news makes absolutely no difference in how you go about your day.
Oh, so-and-so was caught in a scandal with such-and-such? Neat. Anyway, I’ve got to get to work and then pick up the kids and cook dinner and whatnot.
99% of the news is completely unimportant, but they breathlessly report it like it’s life and death.
For most people, it’s a momentary diversion, and if it went away it would make no difference at all.
There are plenty of paid news websites (specifically ones focused on oil markets in the MENA region aimed at traders, some that review court cases aimed at lawyers) and those have no problems at all getting subscribers exactly for the reasons you've specified.
Often they come around because hiring an analyst to track a specific thing is more expensive than having that same analyst do the research for 5-10 companies/groups interested in it.
Now if you're interested in something that is "breaking" you can find live footage and even expert discussion, for free, on the internet.
It did little to make the cost of producing information cheaper; that still requires a human to analyze data, interview relevant people, and synthesize a useful article.
It did reduce the incremental cost of delivering that information to even closer to zero. Yes, serving a kilobyte of data is slightly cheaper than the paper and ink to put a thousand characters on a newspaper, but neither problem was actually all that expensive within living memory.
The major problem is that it increased the value of being that information provider to something significantly greater than the cost of distributing it. Reader attention and reader data can be sold for more than it costs to push a page to that reader, pushing the information content to the side and inverting the newspaper provider -> information consumer relationship into an attention selling consumer -> attention buying advertiser relationship, incentivizing clickbait, advertorials, and listicles. This new format is more economically powerful, and like an invasive species, it out-competes less greedy formats into extinction.
There's an exception to this - if the "news" is designed to inform you how much better than everyone else you are - this "news" can be useful and people do pay for it. It's surprising how many subscription new services appear much different if you view them as "subscriber life choice reinforcement and encouragement."
I also noticed that news and trends I read about in “higher-order” publications tend to trickle down and have an impact on my local area on a timescale of about 5 years.
This, I would gladly pay for.
Households would subscribe to daily or weekly newspaper deliveries and monthly magazine delivery; people would buy newspapers from stands on their way into the office in the morning.
I grew up in the UK in a household that subscribed to a daily local newspaper, a Sunday national, a weekly TV guide magazine, and several monthly magazines. This in a country where we also had free over the air access to BBC nightly television news and local and national news radio.
Did news used to have more impact on people's lives? Or are people now simply able to pick up the same ambient awareness they desire about the state of the world (or at least the subjective impression of something that feels like it) from free internet sources?
They used to serve a number of important purposes.
Classifieds: want to buy or sell a car? get a job? Buy a house? This was the place to do it. Not actually going to do it but just want to peruse what’s available? This is the only option.
Comics: laughs, puzzles every day. No Internet, no where else to get this.
Traffic, weather: these might actually make a difference in your day
Yes, before the Internet, newspapers actually did things that were useful
This. People find some value in the news and are willing to pay for it when there's no other option, but they don't value the news enough to pay for it when the free internet option does an acceptable job of satisfying their curiosity.
You mention TV and radio, but the critical difference is that you can read paper or online news on your own time, whereas TV and radio have their own schedules.
Newspapers covered not just news but also opinion, entertainment, sports, socials, comics, classifieds
Something for everyone
Now the internet can fill all of those with a-la-carte options
The only other news that I regularly look at is related to my job (aerospace industry). "News articles" (most of them are actually just native advertising) about new products/technologies people are developing, what contracts other companies have won, and company acquisitions are relevant to my job.
We don't wanna pay for it because we know we don't need it and it isn't good for us. The grip of addiction or "go along" is strong enough for some to cough up cash, but it's not the vast market of unfillable desire that the publishers want to sell to their advertisers.
Newspapers cost more than their sale price to print: just because you've paid for it doesn't mean you're no longer the product the publisher is selling. It's just a way the publisher makes you seem more attractive to the real market. They know and use their "unpaid circulation" numbers too.
The destruction of "print costs" in the internet age has not changed the underlying dynamic that much.
The internet really lets you 'focus' on a particular article/video and ignore basically everything else.
For most of us, news isn’t that different from an HN or YouTube or TikTok rabbit hole, a compulsive outlet for us to waste time in, having little practical impact on our real lives. Certainly not enough to pay for, if we were forced. We would just move to TikTok instead
I realize that here on HN, the vast majority of us are in the minority as we are likely highly educated and/or experienced as well as have above average average critical thinking and synthesis skill. But, I don't need to pay someone else to take the information and provide context; I am quite able to do that myself and for myself.
I'm just not willing to pay news sites to deliver not only slanted context-added information but superfluous information garbage (i.e., who in Hollywood is fucking and/or suing one another) just to drive pageviews and inventory space for advertising I will never see.
Dropping The Fairness Doctrine coupled with poor critical thinking and synthesis skills alongside the rise of free exploitation of direct information delivery channels (i.e., social media) has destroyed our world and we shouldn't support it financially or with our eyeballs.
For me personally, I'm reluctant to pay because the value < cost. On the other hand, I acknowledge how important a strong, independent press is so I want to pay something.
Then I remember how difficult most news orgs make it to unsubscribe and so about the only thing I'm willing to subscribe to is Apple News because I can start and stop with a click. No retention shenanigans, no emails.
I'm confused about who the news belongs to. I always have it in my head that if your name's in the news, then the news should be paying you. Because it's your news and they're taking it and selling it as their product. But then they always say that they're helping you, and that's true too, but still, if people didn't give the news their news, and if everybody kept their news to themselves, the news wouldn't have any news. So I guess you should pay each other. But I haven't figured it out fully yet.
And why won't they let me pay for news the way I want? I'd much rather pay on a per article measure rather than a subscription. As a consumer, there's nothing I hate more than a subscription plan. If anything I'm trying to get rid of subscriptions in my life, not get more of them.
Then there's the quality of most news sites. There's a reason why people on hacker news immediately read the comments before reading a news article: it's because the average writing and synthesis of thought is much better on hacker news commentators than the average news site.
I'm really fairly certain I would have purchased many, many, many editions of, say, the San Francisco Chronicle over the years, were that on offer. But it isn't. So after years of seeing the San Francisco Chronicle's popups telling me that the only way to read one of their articles is to subscribe, the San Francisco Chronicle has in fact received $0 from me.
Most sites rarely cite sources. They're still operating like we don't have access to the same information.
You can often get a better understanding of a news article by skimming the primary source and drilling in wherever necessary.
The intermediary of a journalist is rarely needed.
On my limited circle, nobody consumes news because they want to. You find that something happened (Usually in social media feeds) and then you want to know more about that specific thing. That sometimes leads you to a news website.
Some news websites do have interesting articles but that's not always the case
There's another challenge after that: the inevitable massive price hike after 6-12 months.
I don't even have to scroll the comments to know that HN people are complaining about seeing ads after subscribing, or having to call to cancel their subscription. For me, that's not the issue.
The issue is having a bait-and-switch pricing structure that incentivizes to cut and run after the '$1 trial' period. 3 months later it goes up to $25/month or something ridiculous. And every paper seems to treat pricing differently and have a myriad set of subscription options beyond the base print/digital choices. The article mentions Netflix and Spotify, but doesn't mention the effect of relative price stablility on those platforms that possibly reduce churn, compared to newspapers.
"There are two great problems of library management – one to get the books for the readers, the other to get the readers to the books."
-- George Herbert Putnam, 8th Librarian of Congress
Used to be utilitarian to buy a printed newspaper. Sidenote: I was a Detroit Free Press delivery boy with the largest subscription in my town; 325 daily (2 hours), 982 Sundays (4.5 hours) for a grand ol’ $325/month in 1970s US dollars)
Useful things like weather, comic, local events, and classified carried the printed stories for these prints.
Today, not so much.
TBH even some trade magazines are just as tedious even though they cover my interests in theory.
I think someone mentioned a few years back about the need for good news aggregation. You pay, e.g. $20/month for access to lots of articles and the aggregator takes a small cut and then pays the publishes of the best articles. That should at least allow the big publishers to stop producing garbage since no-one will want to read it and also push them to work out what articles have good value.
The obvious political slant of some is also another issue but I don't have time to discuss that now...
- Much material is rehashing of the same underlying content.
- This is especially the case of reviews, where the real item is the content being reviewed --- a video series, film, music, book, dramtic performance, etc.
- All the lifestyle stuff (sport, real estate, entertainment, "home", "life", "style", "fashion", etc.) is essentially advertising under editorial guise.
- So is much of "Business", unfortunately.
That leaves local, regional, national, and global news, politics, a fraction of business coverage, and perhaps science and technology. Several of those are best treated as specific domains where a specialist publication would better serve you.
I would like a local publication that actually addressed local issues. I'm finding this increasingly and quite frustratingly difficult to find.
I will happily pay for a news product that serves the reader and has no advertising. This is a request for a startup!
The only difference is that the current clickbait feedback loop is driven by ad revenue.
I used to have an app that curated topics into short summaries. It was curated by humans but they failed to monetize and shut down.
It's that I look at news aggregators like Real Clear Politics and various newsletters, and I sample a small number of articles from a very large number of news sources. I'm unwilling to pay for a newspaper subscription if it serves me only a very small number of articles that I'm interested in each day.
I suspect that others who use Google News or Apple News or Yahoo experience the same thing.
All this suggests that a Spotify or Netflix-like subscription model might work. Spotify charges $9.99 a month to give you access to 82 million songs. I would totally pay for a similar subscription that gave me access to many newspapers.
I need to graze, not feed.
The vast majority of news outlets fall into the latter category. They'll give you 'free' content because they're not really in business to make money, they're more like curated infomercial services aimed at feeding stage-managed narratives to their readers/watchers on behalf of other organizations and institutions.
Why would anyone pay to consume a propaganda stream that is provided for free?
Some people might pay for intelligence reports specific to their own business interests, but that's probably a pretty small market.
What I do pay for is my city’s local paper, since unlike state or national news local news is much harder to get a suitable quantity of online.
I go looking for news and I get, old news, comments and opinions on situation X, political activism, other kind of activism, half fake facts, completely fake facts, tabloid news and things that do not interest me.
Why should I pay for junk? If somebody would be in the business of delivering news, not junk, I would pay. But it's hard to find that someone.
http://www.paulgraham.com/submarine.html
To add insult to injury, the prices for digital only subscriptions are well over $200 just for one news org subscription.
The only one that makes any sense is an Apple news subscription, but I don’t like how its AI presents content nor do I like its search results.
The way I see it, (90%?)most of it is propaganda, rage baiting and interest pushing. That is not something I want to spend money on.
Would anyone notice if there was an extra $1.50 tacked on to your Internet bill? Some organization collects it from the ISPs and redistributes to the new sites based on viewership statistics from a trusted third party with a reserve for new/independent/grassroots/minority sources. Then I don't have to log in, renew my subscription to each site, and they still get funded for reporting.
I'm not super connected to the media publishing world or anything but it seems to me like a concentration-of-power thing is creating incentives for sensational/entertainment reporting than journalism. A system where billionaires wouldn't have a reason to buy up all of the sources for their circus would be nice.
If I want X service, I'll pay for X service on my own.
I think you're lowballing the cost, though the total still remains low.
At the 2005 advertising peak, ads income (a cost born by the public through product purchases) was $50 billion. Subscription expense in 2020 was another $11 billion. Pro-rated per person among the 330 million population of the US:
- Advertising: $50 billion -- $150/person ($12.60/person-month)
- Subscription: $11 billion -- $33/person ($2.75/person-month)
- Combined: $61 billion -- $183/person ($15.40/person-month)
https://www.pewresearch.org/journalism/fact-sheet/newspapers...
An advertising-free subscription assuming 2.5 persons per household on average would run less than $40/mo. With advertising, the cost would be less than $8/mo. This would fund journalism at the levels of 2005, whilst making the work product available to every household in the US.
We could factor in all book publishing revenues, roughly $25 billion (2019), for another $6.50/mo.[1]
Again, pro-rating this by household wealth / value, would make information equitably avaialable to all.
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Notes:
1. https://publishers.org/news/aap-statshot-annual-report-book-...
https://www.currentaffairs.org/2020/08/the-truth-is-paywalle...
It's definitely a longform excellent (free!) article about how good content is paywalled, but the propaganda/lies are free.
-------------Excerpt-----------
But let us also notice something: the New York Times, the New Yorker, the Washington Post, the New Republic, New York, Harper’s, the New York Review of Books, the Financial Times, and the London Times all have paywalls. Breitbart, Fox News, the Daily Wire, the Federalist, the Washington Examiner, InfoWars: free! You want “Portland Protesters Burn Bibles, American Flags In The Streets,” “The Moral Case Against Mask Mandates And Other COVID Restrictions,” or an article suggesting the National Institutes of Health has admitted 5G phones cause coronavirus—they’re yours. You want the detailed Times reports on neo-Nazis infiltrating German institutions, the reasons contact tracing is failing in U.S. states, or the Trump administration’s undercutting of the USPS’s effectiveness—well, if you’ve clicked around the website a bit you’ll run straight into the paywall. This doesn’t mean the paywall shouldn’t be there. But it does mean that it costs time and money to access a lot of true and important information, while a lot of bullshit is completely free.
A: The product stinks. Throughout most of the English-speaking world, local publications, if they exist, are abysmal. National-level publications may be quality, but even that can be iffy. The typical large-city publication now consists almost entirely of press releases and foreign outsourced text, if not outright auto-generated copy. GPT-3 should be all the rage any minute now. My household did subscribe to the local daily well past its expiration date. Our patronage alone couldn't float that boat.
B: At the same time, there's a phenomenal resistance to providing information in sensible formats: tables or charts for quantitative information, maps for geographic (say: wildfire boundaries, natural disaster impact regions). The press appear to feel the public are entirely illiterate and are taking all possible pains to ensure this remains the case.
C: Partisanship has increased to the point that trust in any opposing news media is all but nil. In numerous cases, the media themselves are entirely to blame.[1]
D: Broad subscription to newspapers was a brief and exceptional phenomenon. Reading Kormelink's article, the claim is that "print readership has seen a steep decline over the last decades". That is a lie by omission: print readership has fallen almost continuously since the 1950s. World War II was the exceptional event that drove a strong interest in international news, at a time when broadcast media were not a viable alternative. And the Internet was in its extremely early stages.[2]
E: Historically, quality news was at best a minority interest, largely of business and political classes. Mass-consumer press began with the "penny paper" and John Law, not as a vehicle for delivering news to the public, but as a vehicle for delivering the public to advertisers. This had made many people very angry and has been widely regarded as a bad move.
F: Read Public Opinion by Walter Lippmann. Read Manufacturing Consent by Ed Herman and Noam Chomsky. Oh hell, here's a "short reading list": https://old.reddit.com/r/dredmorbius/comments/7k7l4m/media_a...
G: For decades, listener support to public media stations has ranged from 15--20%. As with numerous other stubbornly-persistent percentages,[3] this seems strongly resistant to change. Perhaps it should be accepted as a given.
H: The incessent upselling. Dropping a quarter, or even five bucks, on the counter at a newsstand for a copy of the daily paper or a copy of The Economist meant that some sleezy dude snooping through my entire life history wasn't sea-lioning into every possible situation trying to push me to the next higher cost bracket. That alone was peace-of-mind justification for not subscribing even to print, and is orders of magnitude worse online. The public media variant is being added to other charities' solicitation lists.
I: Privacy. I don't want or need entities with strong (e.g., credit-card-payment grade) proof of my identity tracking to the paragraph what I'm reading. The Stasi and SS would have committed genocide for such data. (And did. With IBM's aid and support.)
J: Relevance. As many have noted here, news really isn't. At the same time, the matters which are of significance ... aren't covered, and aren't rewarded in the market.
K: The market. Basically, information and markets don't work. Market dynamics turn quality information to shit and motivate shit in droves. It's the Sidam touch --- the reverse of Midas. Included in its entirety by reference: "Why Information Goods and Markets are a Poor Match" (2015) https://old.reddit.com/r/dredmorbius/comments/2vm2da/why_inf...
L: Subscription fatigue. As streaming video providers are discovering, there are only so many services a household is likely to subscribe to, before cancelling, subscribing on an as-needed basis, or seeking out piracy sites. Entertainment and information budgets are limited.
M: The closest I've come to a solution is that media should be supported on a progressive basis. Preferably through taxes, though perhaps more feasibly through broadband service providers. It's the natural tollgate for payments, and greatly simplifies accounting. There's a reasonable degree to which actual readership can be assessed, though I feel that that alone is an abysmal basis for remuneration. Excluding specific prohibited behaviours, access from both readers and publishers should be without limits, though perhaps subscribers would be able to indicate specific excluded publishers (that is, no funds would be provided to those, from that subscriber's payments). Obligations for local coverage would exist. Separating the content gating from the physical infrastructure also seems highly advised.[4]
Yes, that's a very rough sketch, but it really seems to me the most viable and useful path forward.
Specifically excluded: micropayments, advertising (we tried that, it broke liberal democracy), NPR/PBS's public media model (it's devolved to corporate capture).
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Notes:
0. I've identified paragraphs by letter, for anyone who cares to respond to specific points. I'm hoping that this will tend to lessen the tendency to think of these as having some sort of ranking, no matter how much a lost cause that might be...
1. How you read that statement will, of course, tell much about which side of that divide you fall on. Likewise, this footnote.
2. Comedic understatment. Pedants, I love you, welcome to Costco, you're my third favourite people, except on the second Thursday of the month.
3. Just a few off the top of my head: literacy rates, espeically when rated by level (about 15% high, about 50% low or none), US high-school graduation rates since the 1950s (90--95%), food wastage rates (30--40%, though with improved transport, refrigeration, and processing, it now occurs later in the supply chain, at far higher cost and resource utilisation).
4. This concept has evolved from my earlier "A Modest Proposal: Universal Online Media Payment Syndication" https://old.reddit.com/r/dredmorbius/comments/1uotb3/a_modes... That itself, of course, has numerous other precedents, including by RMS and Phil Hunt.
5. "Repudiation as the micropayments killer feature (Not)" https://old.reddit.com/r/dredmorbius/comments/4r683b/repudia...
That's the reason we used to pay for newspapers but won't pay for online news (and have no need for newspapers)
That does not mean a use value of 0.
And with any level of fixed costs, there is a nonzero production cost.
Market function in this case is highly inefficient as it results in underprovisioning and a deadweight consumer loss of value.
Sometimes the marketis the wrong tool for the job.
Finally: you're also misstating what the marginal cost dilemma is. Resources need not be infinite, but rather either non-excludable or with marginal cost below average cost. Both can occur with an otherwise finite good or service.
And an infinite resource might face other limitations which result in a nonzero price. The Universe could well be infinite in dimensions. Even were this the case, such that space is unlimited, lack of access to that space would result in nonzero land prices on Earth for humans.
(Paul Krugman actually wrote a paper on the economics of a space-colonising civlisation early in his career. I don't recall his specific argument or of it parallels my own here, but it might make interesting reading.)
Why does everyone block ads? Why does everyone look for archive links to overcome paywalls? Because they feel that paying more than 0 is a rip-off
2. misstating the necessary criteria / mechanism of ZMC.
You're correct in that the marginal cost, and hence market price of information, trends to zero.