HOME
          
LATEST STORY
The Internet Archive hopes to boost its collections through funding from the Knight News Challenge
ABOUT                    SUBSCRIBE
April 23, 2012, 2:23 p.m.
chyi-study-map

Are you a young dude interested in news? All else equal, this study says you’re a top paywall target

A new study from the University of Texas explores the interrelatedness between online news use, preference, and intent to pay.

Here’s a biggie: How do you get someone to pay for online news? A new study (PDF here) out of the University of Texas develops a theoretical model to begin answering that question.

The goal of the study, by Iris Chyi and Angela M. Lee, is to clarify the interrelationship among news preference, use, and intent to pay. What emerges, among other things, is a profile of the kind of people most likely to pay for online news: Young males who are — wait for it — interested in the news.

That last part is key, because while younger people are more likely to pay for news online, the study finds, they’re also less likely to be interested in news in the first place.

Another paradox: People say they prefer reading print products, yet online use is growing. In other words, consumers don’t always use what they prefer, and they’re not always willing to spend money on what they use.

That’s an idea that Chyi has been exploring since the 1990s. She sometimes refers to it as “ramen noodle theory,” which we’ve written about before: People might prefer steak over ramen — but when it comes time to reach for their wallets, they opt for ramen more often. Because it’s free and abundant, the “ramen” is perceived as inferior — which reinforces consumers’ preference for “steak.” This could help explain why Chyi found “very weak correlations” between use and intent to pay in her latest study. This is from its abstract:

While media scholars tend to take “media use” as an indicator of popularity or diffusion, media use alone does not fully capture the complexity of online news consumption. For instance, given free online news offerings in most cases, consumers do not always use what they prefer, and most are not willing to pay for what they use. This study identifies three distinct factors — preference, use, and paying intent — each helps explain a specific facet of online news consumption.

Given how many variables play a role in a consumer’s decision to buy online news, the takeaway is a bit more complicated, and that’s kind of the point: Fully understanding online news consumption is about more than just looking at how often people are going online. News organizations must also dig into what consumer’s want, what they’re willing to buy, then figure out how (and why) these factors overlap.

“The overall picture when we are looking at intention to pay for online news is that we have to consider as many as five predictors,” Chyi told me. “I think that sort of explains why most newspapers have found it’s so difficult to monetize their online content.” From the study:

Specifically, age is a key factor influencing every aspect of online news consumption. Gender, in comparison, only affects paying intent. Paying intent for online news is influenced by five factors (age, gender, news interest, preference, and online news use), with age and news interest being the strongest predictors.

The study was presented Saturday at the International Symposium on Online Journalism. Chyi’s study was based on an online survey of 767 adult respondents in August 2010. While that seems like a really long time ago in Internet years — the first iPad was only five months old — Chyi says her research is current enough to offer a useful picture of a longer-term shift she’s tracked for more than a decade. Though print is declining by just about every metric, Chyi is convinced that there is an “over-optimistic bias toward online news.” At the same time, she acknowledges it’s “very late and very difficult to change the perception that the future is online or online-only.”

It’s not that she’s anti-technology, she says: “I believe that new platforms will be really important for people to access news, but in terms of how to monetize it, I think it’s getting more and more difficult,” says Chyi, who also sees a conflation between print decline and online growth. “Very often we mix the two together and say, ‘Because print is declining, the future must be online.’ But I don’t think that’s the case.”

Whatever the case may be, the theoretical model her study produced might offer the beginnings of a structural map for those who need to find a way to convince audiences that their news products are worth paying for.

POSTED     April 23, 2012, 2:23 p.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
The Internet Archive hopes to boost its collections through funding from the Knight News Challenge
The home of the Wayback Machine and other efforts to preserve the Internet is among 22 projects based around libraries receiving $3 million in funding through the Knight News Challenge.
Constantly tweaking: How The Guardian continues to develop its in-house analytics system
Since its launch in 2011, The Guardian has consistently made changes to its in-house analytics tool, Ophan.
Bloomberg Business’ new look has made a splash — but don’t just call it a redesign
Bloomberg digital editor Joshua Topolsky on uncomfortable news design, new ad units, and why they killed the comments.
What to read next
2902
tweets
Don’t try too hard to please Twitter — and other lessons from The New York Times’ social media desk
The team that runs the Times’ Twitter accounts looked back on what they learned — what worked, what didn’t — from running @NYTimes in 2014.
728From explainers to sounds that make you go “Whoa!”: The 4 types of audio that people share
How can public radio make audio that breaks big on social media? A NPR experiment identified what makes a piece of audio go viral.
722Q&A: Amy O’Leary on eight years of navigating digital culture change at The New York Times
“In 2007, as digital people, we were expected to be 100 percent deferent to all traditional processes. We weren’t to bother reporters or encourage them to operate differently at all, because what they were doing was the very core of our journalism.”
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 ➚
Honolulu Civil Beat
Newsweek
Creative Commons
Foreign Policy
Hacks/Hackers
The Seattle Times
San Francisco Chronicle
Byliner
The Batavian
Minneapolis Star Tribune
Wired
International Consortium of Investigative Journalists