HOME
          
LATEST STORY
A mixed bag on apps: What The New York Times learned with NYT Opinion and NYT Now
ABOUT                    SUBSCRIBE
Jan. 10, 2012, 9 a.m.

Piano Media wants national paywalls all over Europe

Lessons from Slovakia’s experiment include: Don’t charge people who lived under Communism for the ability to comment.

Liptov, Slovakia

The expansion of Bratislava-based Piano Media into Slovenia is just the beginning of the company’s efforts to bring national paywalls to five European countries by year’s end.

Eight Slovene media outlets have agreed to unite behind a single paywall starting Jan. 16. It’s the cable TV model: Pay a flat monthly fee for unlimited access to everything inside. I caught up with Piano CEO Tomas Bella to hear how it’s going in Slovakia, where the experiment began seven months ago. He’s not yet willing to share subscriber numbers, but he did share observations — mainly, that Slovak readers are not much different from those in the United States or elsewhere.

He said there are different types of readers. The first group “will sign up no matter what you do,” he said. “They just do it in the first week or first weeks. The price can be almost any price. They will pay, and they will pay for a year.” These are people who trust traditional media institutions and are willing to pay to help them survive.

As for everyone else, the barriers to subscribing range from inertia — some people need lots of naggy “here’s what you’re missing” emails — to philosophical opposition. “People were saying, in principle, I will never pay because the Internet should be free,” Bella said. He said he had expected a strong correlation between socioeconomic status and willingness to subscribe, but the divide turned out to be philosophical.

“The number of subscribers is still going up as more and more people are telling us that they were against the concept at first but now they got used to the idea and already feel comfortable with paying,” he said. “Last week I saw one post on Facebook that literally said: ‘You know what, I have woken up one day and realized that I do not know why I was against Piano all the time, and I have paid.'”

For Bella, a former newspaper editor who has tried and failed to get paywalls off the ground, that’s more satisfying than making money. He is out to reset the way people think about the value of news. He said the subscriber numbers were “not so big” at first but that the Slovak paywall generated €40,000 in its first month.

The biggest mistake, Bella said, was trying to charge users for comments. Five of the Slovak publishers wanted a way — any way — to help manage the daily deluge of comments on news articles. But citizens of a former Communist regime don’t want their free speech impinged upon. “This was a very special central European problem,” Bella said. In Slovenia, the paywall will only cover text and video at launch; publishers will be able to add in more kinds of content down the road.

The price for the Slovene package is just under €5 a month, a couple of euros more than in Slovakia. Piano’s market research found that was the most that most Slovenes are willing to pay for news, Bella said.

“It’s still, of course, not as much as publishers would like to have, and it’s still not, I would say, a finite price. But they understood that we need to start at some level of — look at it from the point of view of the reader, not from the point of view of how much the content costs. The research was really very strong. It said that if we go any higher, then we are losing money.”

Pricing for the Slovak paywall, at €2.90 per month, was based more on intuition than research, he said.

The subscription model in Slovenia remains the same: 40 percent of the proceeds goes to the media organization that initially captured the subscriber, 30 percent is distributed to all partners based on how much time the reader spends on their respective sites, and the remaining 30 percent goes to Piano. So if I sign up for Piano’s paywall at the website of Delo, Slovenia’s national broadsheet, and I spend most of my time at Delo’s website, most of my money goes to Delo. (Tracking time on site has proved to be the most complicated technical challenge, Bella said. That and going after users who avoid the paywall by creating multiple free trials.)

Bella said he hopes to sign up 1 percent of the Slovene population, or about 20,000 people. He said he expects to announce two or three new deals with publishers in Slovakia later this month.

Photo of Liptov, Slovakia by Martin Sojka used under a Creative Commons license.

POSTED     Jan. 10, 2012, 9 a.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
A mixed bag on apps: What The New York Times learned with NYT Opinion and NYT Now
The two apps were part of the paper’s plan to increase digital subscribers through smaller, targeted offerings. Now, with staff cutbacks on the way, one app is being shuttered and the other is being adjusted.
The newsonomics of new cutbacks at The New York Times
The Times found success with its first round of paywalls, disappointment with its second. Is it hitting a paid-content ceiling?
With limited time to revamp WNYC’s Schoolbook, John Keefe decided to take his team on the road
The new Schoolbook will have targeted emails, major content partnerships, three languages, and more — and building it took just seven days.
What to read next
751
tweets
Wearables could make the “glance” a new subatomic unit of news
“The audience wants to go faster. This can’t be solved with responsive design; it demands an original approach, certainly at the start.”
677Designer or journalist: Who shapes the news you read in your favorite apps?
A new study looks at how engineers and designers from companies like Storify, Zite, and Google News see their work as similar — and different — from traditional journalism.
596Ken Doctor: Guardian Space & Guardian Membership, playing the physical/digital continuum
The Guardian is making its biggest bet on memberships and events by renovating a 30,000 square foot space to host live activities in the heart of London.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
The Nation
St. Louis Beacon
AOL
INDenverTimes
The Chronicle of Higher Education
NewsTilt
New Jersey Newsroom
The New York Times
Newsday
Salon
Arizona Guardian
ESPN