Nieman Foundation at Harvard
HOME
          
LATEST STORY
How AJ+ embraces Facebook, autoplay, and comments to make its videos stand out
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.
How AJ+ embraces Facebook, autoplay, and comments to make its videos stand out
“We think a lot about whether a video works with the sound off. Do we have to subtitle it to keep the audience retention high? Do we need to use big fonts?”
“It’s like seeing your grandpa in a nightclub”: The New York Times’ challenge in building a digital brand
“Relevance is the Times’ big problem, not awareness. Plenty of people know about The New York Times. But most of them think we’re not for them.”
How The Washington Post built — and will be building on — its “Knowledge Map” feature
The Post is looking to create a database of “supplements” — categorized pieces of text and graphics that help give context around complicated news topics — and add it as a contextual layer across lots of different Post stories.
What to read next
1119
tweets
New Pew data: More Americans are getting news on Facebook and Twitter
A new study from the Pew Research Center and Knight Foundation finds that more Americans of all ages, races, genders, education levels, and incomes are using Twitter and Facebook to consume news.
797Newsonomics: The halving of America’s daily newsrooms
If you’re lucky enough to have the right deep-pocketed owner buy your paper and steady it, you’ve won the lottery. If you’re in a town whose paper is owned by the better chains, or committed local ownership, your loss will probably be mitigated. Otherwise, you’re out of luck.
698How 7 news organizations are using Slack to work better and differently
Here’s how Fusion, Vox, Quartz, Slate, the AP, The Times of London, and Thought Catalog are using Slack for workflow — and which features they wish the platform would add.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Fuego is our heat-seeking Twitter bot, tracking the links the future-of-journalism crowd is talking about most on Twitter.
Here are a few of the top links Fuego’s currently watching.   Get the full Fuego ➚
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
The Weekly Standard
Grist
PBS
Patch
Wisconsin Center for Investigative Journalism
Fwix
Mother Jones
BBC News
OpenFile
Tucson Citizen
WikiLeaks