Do news consumers want to pay for an ad-free experience?

The affluent, early-adopter users who are mostly likely to pay $ᵤ are also those users with highest $ₐ, as advertising to them commands a premium. Unless you enforced discriminatory subscription pricing to users, based on the counterfactual of their potential ad revenue, you’d still be better off advertising to the people willing to drop $10/month ... See more

The apparent limitation of the ad-supported media business model is that there will never be enough traffic to satisfy the beast. But while subscription revenue is stickier and gives creators more runway and short-term security, eventually the flame that started any new project will be extinguished. A new muse will need to be found.

The ongoing collapse of advertising revenue within the creative media landscape certainly exacerbates the issue, with publications forced to rely on reader subscriptions, sponsored content, or pay-for-play coverage to fund their platforms – two out of three of which limit any negative feedback almost entirely.

Once upon a time, the Internet was predicated on user-generated content. The hope was that ordinary people would take advantage of the Web’s low barrier for publishing to post great things, motivated simply by the joy of open communication. But then ad sales came into play.

That business model is still what most of the Internet relies on today. Rev... See more