Axate research shows consumers willing to pay for local news
Research carried out for Axate, the digital wallet that allows casual readers to pay for access to online news articles without subscriptions, has revealed that people feel that access to local news is now more important than before the Covid-19 virus.
Young people in particular see local news as more important since the outbreak of the pandemic, with 56% of 18-24 year olds and nearly half of 25-34 year olds valuing local news more than before the Covid-19 crisis.
The research also shows that a large percentage of respondents are also willing to pay, with the highest percentage of respondents happiest to pay either small voluntary or compulsory payments - nearly five times as many as were willing to pay with a subscription. 18-24 year olds are the most willing age group to pay for local news, with nearly half of respondents stating they were willing to pay a little.
The research, conducted on behalf of Axate by Research International on 7 April 2020, questioned a nationally representative sample of over 2000 adults.
Key findings from the research were:
45% of people think local news is more important to them now than before the Covid-19 crisis (the equivalent who think it less important is 3%).
56% of people aged 18-24 think local news is more important to them now than before the Covid-19 crisis (the equivalent who think it less important is 4%). Nearly half (49%) of 25-34 year olds think the same.
Daily consumption of local news has risen from 24% to 28% of the population.
39% - more than one in three - were willing to pay in some way for local news.
Of these, the largest single group were the 23% prepared to pay small amounts, either on a compulsory or voluntary basis.
9% would make a one-off donation, but only 5% were interested in a regular donation/subscription.
Nearly half (48%) of people aged 18-24 were willing to pay for local news, with the highest proportions of respondents preferring to pay on a voluntary or one-off donation basis. Only 7% would commit to a subscription, if it was the only way to read the paper/site.
In response, Axate has launched a ‘pay if you can’ (PIYC) option for local newspapers, which allows readers to choose to support their local newspaper through a voluntary payment for access to an article. It is already in operation at the Maidenhead Advertiser, Slough and Windsor Express series, five Iliffe Media titles, and Barnsley Chronicle (as part of Axate’s Future News project with Nesta), with several more publishers set to be launched in the coming weeks.
Dominic Young, Axate CEO, commented: “These findings show how much people - and young people in particular - value local news: nearly 40% of people expressing an intention to pay or donate is unprecedented and offers a counterpoint to the assumption that advertising is the best business model. It’s encouraging to see, given the launch of Axate’s latest ‘pay if you can’ feature, that nearly five times as many people are willing to pay small amounts, whether on a voluntary or compulsory basis, than are willing to subscribe.
Local newspapers are facing a double whammy as print sales decline while advertising is near to non-existent. The sector is calling for government support, but can also demonstrate a willingness to help its own future by allowing its readers to pay to read. Our research and experience show that they will respond positively.”
Research conducted by Research Interactive. Online fieldwork 7th April 2020. Nationally representative sample of 2116.