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A 2023 survey conducted in Austria with 1,000 participants investigated the relationship between media trust and consumers’ willingness to pay (WTP) for online news in the post-pandemic era. The results indicate a strong correlation between media trust and both WTP and actual media expenditure. This highlights the importance of trust in securing financial sustainability for media organisations. As free content dominates the digital landscape, media companies must rebuild trust to encourage consumers to pay for credible news.

The media industry faces various challenges due to digital disruption and declining trust. While scepticism toward the media is not new, the pandemic accelerated its decline. Trust in media is essential for democracy and economic stability, yet media institutions remain among the least trusted. Despite increased news consumption during the pandemic, trust did not improve. This decline in trust has affected financial sustainability, forcing media companies to shift from ad-based models to paid subscriptions. However, WTP for news remains low, stagnating at 17% globally and only 13.7% in Austria.

Media trust is a crucial factor in social interactions and economic behaviour. Trust in media means audiences believe the media will perform its role satisfactorily. Without trust, the media cannot serve its democratic function, however, it should not be unconditional and should be accompanied by critical media literacy. Trust also involves uncertainty and a leap of faith, as audiences cannot always verify news content. The digital age complicates trust with misinformation, fake news, and algorithm manipulation. Media organisations have also contributed to declining trust through poor reporting and inaccuracies. Since consumers cannot assess media quality before consumption, trust plays a key role in their decision to pay for content. Building trust requires a focus on journalistic integrity and media branding.

From an economic perspective, trust in media brands influences consumer decisions and financial support. Trusted brands create competitive advantages, increasing WTP. Prior studies show that consumers are more likely to pay for news from trusted sources. Economic theories suggest that consumer preferences determine the value of a good: when consumers trust a media brand, they perceive it as more valuable and are more willing to pay for its content. However, free alternatives on social media and financial constraints make it difficult for media companies to convince consumers to pay.

The sample for the online survey, conducted by the Austrian Gallup Institute in October 2023, consisted of 1,000 respondents aged 16 and older, representing Austria’s web-active population. The survey measured media usage, trust, perceptions of media performance, payment behaviours, WTP, and trust in political institutions. Multiple regression analyses were conducted to test hypotheses. Predictors included socio-demographics, media use, and political trust, with interaction terms to test moderation effects.

The results show that trust in media significantly influences WTP and media expenditure. Public service media were rated as the most trustworthy, with television and radio considered more credible than social media. Although media consumption is high, 25% of respondents avoid news, citing psychological stress and lack of trust. Trust in political institutions is low, with only 12% expressing high trust. There is a moderate correlation between media trust and WTP, indicating that trust influences payment behaviour. Political trust also correlates with WTP and media expenditure, suggesting that those with higher trust in political institutions are more likely to support paid news.

Regression analysis shows that higher education and larger households predict higher WTP, while older age, being female, and living in rural areas predict lower WTP. Media use is also a significant predictor, with frequent media users showing higher WTP. Political trust independently predicts WTP, and its interaction with media trust further strengthens this relationship. Media trust remains a significant predictor of WTP across models, though its effect weakens when political trust is considered. When media expenditure is analysed as the dependent variable, similar patterns emerge, though with lower explanatory power. Income significantly influences media expenditure, while media trust loses significance in complex models.

Trust in the media is important for both democratic and economic reasons. Trust enables informed citizenship and financial stability for media organisations. The survey results confirm that trust strongly predicts WTP and media expenditure. As the pandemic increased scepticism toward media due to misinformation and political biases, and social media has further weakened traditional media, trust has become even more critical for securing paid subscriptions. Consumers prioritise credible media brands, which influences their willingness to pay. Therefore, media organisations must focus on rebuilding trust and demonstrating the value of their content.

To restore trust, transparency is essential. Providing insight into journalistic processes can help regain credibility. Fact-checking, ethical reporting, and clear labelling of content can also enhance trust. Accountability is another key factor, requiring strict ethical standards and swift correction of inaccuracies. Engaging with audiences and considering their perspectives can strengthen trust and loyalty.

Beyond trust, understanding other factors influencing WTP is crucial for media sustainability. Socio-demographic factors play a role, highlighting the need for flexible pricing strategies such as micropayments. Regular news consumers tend to trust the media more and are more inclined to pay for content. Advanced data analytics and AI can help tailor content recommendations and increase engagement.

While quality journalism is important, media companies must also focus on branding and marketing. Consumers’ willingness to pay depends not only on content quality but also on brand perception. Strong media brands create competitive advantages, increase perceived value, and drive higher WTP. Marketing and psychology research emphasise the importance of brand trust, yet this remains an underexplored area in media studies.

Voci, D., Karmasin, M., Luef, S., Förster, S., & Kaltenbrunner, A. (2024). Trust has a price?! Unraveling the dynamics between trust in the media and the willingness to pay in the post-pandemic scenario. Journalism, 0(0). https://doi.org/10.1177/14648849241311101