Can the wall pay out? Selected research results on the theory and practise of newspaper paywalls

Seminar paper from the year 2014 in the subject Communications - Multimedia, Internet, New Technologies, grade: 1,3, Johannes Gutenberg University Mainz (Institut für Publizistik), course: Ausgewählt medienwirtschaftliche Forschungsergebnisse, language: English, abstract: For almost 15 years, the so-called digital natives as well as older generations learned that news online is free. One could read a massive amount of content for free on the websites of the same newspaper brands that charge their readers everywhere else. A more or less obvious paradox, mainly financed on the back of a growing advertising market. However, with the burst of the new economy bubble, it became apparent that advertising would transform. The newspaper industry declined to revise its subsidy model albeit acting in a rapidly changing media economy, which forces every player to reconsider its long-term strategy.

First, the study will introduce the current state of the media market in order to see more clearly why new revenue streams are needed. Here, the study will utilize path dependency theory that suggests a strategic lock-in of the industry. Second, the basic economic terms of paywalls are presented by analysing the theoretical background. Third, the groundwork will be reviewed in practice by discussing several of the latest research studies and examples from recent paywall implementations.