How Sweden’s Dagens Nyheter slashed churn and other paid content lessons


 Every morning Dagens Nyheter, by Elgar Hollard, from Wikimedia Commons

Hello and welcome to even more new subscribers! New subscribers mean that this is useful to you and keeps me excited to continue doing this.

Today’s newsletter is like Chinese takeout, a bit of sweet and sour. First, the sweet: Digiday has a great piece looking at how Dagens Nyheter has halved churn over the last couple of years. Digital subscribers overtook print ones in May of this year. They are converting 2000 subscribers a week, and digital subscriber revenue has overtaken advertising as their largest digital revenue stream.

From a conversion standpoint, they have developed a hybrid three-layer paid content system: Metered, premium and dynamic. The dynamic layer puts content that attracts a significant amount of traffic in three to four hours behind the paywall.

In terms of conversion, they have found that the first four to six months are critical in reducing churn, which is why they have focused on things like newsletters and push notifications to build habits with newly converted subscribers.

That’s the sweet and now the sour from today. I got my start in journalism at a small local newspaper in western Kansas. My editor at the Hays Daily News Mike Corn used to joke, “It’s not the middle of nowhere, but you can see it from here.”

The Hays Daily News was part of a family-owned regional group, Harris Enterprises, and it pained me to read this deep dive into the decline of the papers that used to be part of the group and other papers across Kansas.

When I was there, things were lean, and I got my job just before a hiring freeze was instituted. In terms of newspapers, even though my career started in the mid-1990s, I never knew the golden age of the industry that some journalists hearken back to. The piece referred to those times and the fat margins papers had then as they enjoyed local monopolies:

For a while, though, newspapers were easy money: In most communities, the newspaper faced little competition and could charge high rates to advertisers. The result, as Lehigh University professor Jeremy Littau noted in a widely shared Twitter thread in January, is that in the 1990s, companies like Knight Ridder – which owned the Wichita Eagle and Kansas City Star before selling to current owner McClatchy – had profit margins of 30 percent or more.


As newspapers dwindle, residents in Hutchinson and elsewhere notice what’s missing , by Joel Mathis, The Journal

Harris Enterprises sold to Gatehouse in 2016. Gatehouse has a reputation for pretty deep cuts and centralised production out of a central hub in Austin Texas. The cuts have been deep, and the piece explains what those cuts mean to communities civically and otherwise.

But I’ll end on this somewhat optimistic note:

If there’s hope for strengthening the connection between news organizations and the communities they serve, then it might come first in those places where news gatherers have to form the closest of ties. There are still plenty of places in Kansas where locally owned papers are persevering.

Thanks again to the new subscribers. If you don’t get this in your inbox, sign up on my Nuzzel profile page, and send along any stories you might spot to me on Twitter @kevglobal.

How to grow paying subscribers by 2000%? Easy. Evolution.

Pieces of paper with the words money, growth and business printed on them with 2019 spelled out in US coins.

2019 – Das Jahr des Wachstums, Geldes und Geschäftes, by Marco Verch, Flickr, Some Rights Reserved

The top story in my media business newsletter today definitely challenges conventional wisdom. Trevor Kaufman, the CEO of paid content platform Piano, says that most people believe that when you launch a paid content strategy that you grow at first but then plateau as you convert the core of your addressable market. I have to admit that from most of the examples that I have seen and even some media properties that I have managed that this is the case.

“After all, once you convert the converted, who is left?” he asks rhetorically. He goes on to challenge that view and says that Piano is finding that those publishers that invest in working their conversion funnel get better at converting.

We took a random sampling of our customers that have been in business between four and nine quarters, comparing their first two quarters with their last two. We found those with just a year behind them experienced increases of up to 50% in their average number of new monthly subscribers. And for those with nine quarters behind them, growth rates reached more than 2000% on average.


Attention, investment in digital subscriptions results in 2000% growth, Trevor Kaufman, INMA

Conversely, those clients who didn’t work it, didn’t invest, didn’t learn not only plateaued but declined. And I think Kaufman points out another key difference: The companies that invested and excelled changed their business, just like the New York Times has, to subscription-focused businesses.

There is a lot about paid content in today’s newsletter including an updated overview of pay models for online news by the Reuters Institute for the Study of Journalism.

Let me know if there are any stories that you’d like to see in the newsletter. I’m @kevglobal on Twitter.

How publishers are experimenting with TikTok, the latest hot short video app

@pjf the Mad Scientist, by Stephen Edmonds, from Flickr

Publisher and broadcasters are always looking for ways to reach young audiences, the latest way to do that is the short-form video app, TikTok. In my international media newsletter today, the top story is from a look at how publishers are trialling “fun” programming on the platform. Digiday looks at the audience TikTok boasts:

According to TikTok’s pitch deck to U.S. agencies, about 60% of its monthly active users in the U.S. are between 16 and 24 years old. Also like Snapchat, users are heavily engaged with the app, spending 46 minutes per day on TikTok, on average. While TikTok doesn’t have a way for publishers to directly monetize on the app, such as through sharing ad revenue, some publishers are still choosing to experiment.

How publishers are using TikTok, the latest hot app, by Kerry Flynn, Digiday

Kerry questions about how much resources early adopters including NBC and ESPN can afford to throw at a platform that doesn’t have a clear way to directly monetise attention. That question alone shows the shift from the strategy a few years back of building an audience and worrying about monetisation later to thinking about the revenue strategy off the bat.

Other topics in the newsletter today are:

Publishers need to prepare for mobile app resurgence. Filloux says large players are preparing to dominate the subscription battlefield. Podcasters need to experiment with new revenue models. Brit & Co is the latest millennial digital brand in trouble.

If you spot a good story about the business of media, especially digital, feel free to send it to me @kevglobal on Twitter. If you don’t get my international media newsletter in your inbox, you can get a taste of it and subscribe here.