News You Can Refuse: If News Is Important, Why Aren’t More People Willing to Pay for It?
In this study, published in Journalism, the authors explore the difficulties that news organisations encounter in generating revenue, especially in the digital age. Journalism plays a vital role in democratic societies by providing crucial information and promoting accountability. Despite this, people are generally hesitant to pay for news, so with declining advertising income and low subscription rates, news organisations are struggling to sustain their operations. This study investigates the reasons behind this reluctance, focusing on motivation for news consumption and the perception of news as a public good.
The research is conducted in Singapore, a technologically advanced and economically prosperous nation with a unique media landscape. Singapore’s media is tightly regulated and mostly state-owned but generally trusted by its citizens. This context offers a fertile setting to examine the interplay between motivations, the perceived importance of news, and public willingness to pay. The study used a national online survey of 818 Singapore residents to ensure a representative sample.
The survey measures various motivations for consuming news, including surveillance (staying informed), socialisation (discussing news with others), and seeking entertainment. It also assesses participants’ perceived importance of news, both personally and socially, as well as their willingness to pay for news. The findings reveal that motivations related to socialisation and entertainment are positively associated with the willingness to pay for news. However, despite being highly rated, the motivation for staying informed does not directly correlate with a willingness to pay. Additionally, perceiving news as personally important increases the willingness to pay, while perceiving news as socially important does not have the same effect.
The analysis in the study reveals an indirect effect, where the motivation for surveillance leads to a willingness to pay, due to the perceived personal importance. This implies that individuals may not pay directly for news to stay informed, but they might be willing to do so if they consider it personally relevant. These findings show that it is important for news organisations to emphasise the personal relevance of their content to encourage subscriptions.
Additionally, the research reveals a difference in how individuals value news compared to its importance in society. People may consider news as a public good when it provides information, but as a private good when it serves entertainment or socialisation purposes. This influences their willingness to pay for news accordingly. This dual nature of news creates challenges for news organisations in monetising their content, as the traditional role of news in society does not generate financial support.
The study also acknowledges limitations, including the use of self-reported data and the specific context of Singapore, which may not apply to other countries. Future research could investigate similar questions in various contexts and analyse factors such as trust in media, current news consumption habits, and the potential market among younger audiences.
In conclusion, the article offers valuable insights into the complex connection between importance and economic viability. These findings indicate that news organisations should broaden their content strategies to appeal to a broader range of motivations and highlight the personal relevance of their journalism to encourage greater financial support. This approach can assist news outlets in navigating the ever-changing media landscape and establishing more sustainable revenue models.
Tandoc, E. C., & Seet, S. (2024). News you can refuse: If news is important, why aren’t more people willing to pay for it? Journalism, 0(0). https://doi.org/10.1177/14648849241253143