Study: Publishers Charging Too Little for Online

July 6th, 2010 - Our-Hometown, Inc. released a study this week titled, Theory of subscription pricing
for weekly community newspaper websites, which indicates many newspaper publishers utilizing paywalls may be undercharging readers for website access.

Based on a study conducted over the last seven months, OHT found that the best price to maximize revenue for publishers of weekly community newspaper websites is “higher than most publishers think, at over 200% of the price of the print edition”.
The study, conducted with the help of Clarke County newspapers, examines the results of a price increase that tripled online-only subscription prices from an already-high price equal to the price of the print edition. Still the publisher generated more revenue than it had at the lower price point.

The study details the calculation of a price at which Clarke can generate even higher revenues.

While paywall revenue opportunities depend on a publisher’s market size and the uniqueness of content offered, OHT’s observations suggest that most publishers can maximize their online revenues with higher rates. For more information, e-mail sales at sales@our-hometown.com or call (315) 294-5735.

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