Nieman Foundation at Harvard
Newsonomics: On end games and end times
ABOUT                    SUBSCRIBE
July 18, 2012, 5:43 p.m.
Business Models
Piano Media in Central Europe

Wielki sukces! Piano Media expands its national paywall model to Poland

It’s the biggest market yet for a company building toward unified paywalls across Europe.

Piano Media in Central Europe

Piano Media, the Slovakian company with plans to erect a pan-European paywall, expanded today into its third and largest market, Poland. Seven major media companies have agreed to put some of their content behind a single national paywall.

The company is betting on the cable TV approach to news: Pay once, log in once, get access to a diverse package of content (including stuff you might not care about). Piano gets a 30 percent cut of the proceeds and divvies up the rest based on which partner sites get the most traffic. The company says its model is a success in Slovakia and Slovenia, though it won’t provide sales data.

Forty-two websites are included in the Polish package, including major daily newspapers, magazines, and Polish National Radio. After a free trial period, Piano will charge about $5.85 a month (19.90 zlotys) or about $58 per year (199 zlotys).

Among those sites is, which is putting about 10 percent of its content — mostly commentary and analysis — behind the paywall. That site’s participation is notable because it’s owned by Ringier Axel Springer, a joint venture that includes Axel Springer, the largest publisher in Europe — which means the potential impact of a success could be much broader.

Aleksy Uchanski, chief digital officer for Ringier Axel Springer Poland, said makes sense as a test site because it offers “premium or super-premium content,” the kind of niche journalism that might persuade Poles to pay. wants to avoid walling off its whole website, lest new users turn away in droves. This is a cautious experiment for the company.

“Paid content in Poland is a 2012 topic — this is a topic that started this year, more or less,” Uchanski told me from his office in Warsaw. People are not accustomed to paying for news. Piano hopes the convenience of a single, low-cost subscription will help reset years of consumer expectations about free content. (That problem is not unique to Poland, I assured him.)

It gets more complicated: “A lot of people (in Poland) still don’t have credit cards,” Uchanksi said, “while others are still extremely afraid of using credit cards in online transactions.” A popular payment method is by way of SMS, in which users pay for services by tacking the fee on to a cellphone bill. Polish telcos take a staggering 50 percent cut of each payment, which means SMS payments are a non-starter for Piano. (Piano accepts SMS payments in Slovakia and Slovenia, where telcos take a 20 percent cut of each payment.)

Peter Richards, who is managing the Poland expansion for Piano, says he aims to convert 0.5 to 1.5 percent of Poles to paying users. “Based on our data after 14 months of operations, there are definitely high income, educated, urban users who comprise this 1% average,” he wrote in an email. “If we have half of the Polish Internet in our package at launch, then one could assume it’s possible that 100,000 Poles could pay. The real question is whether they see value for the money they pay and in our case for the price of two coffees you can have access to 42 websites.”

Richards said he found 40 percent of printed content in Poland is not made available online. Some publishers plan to offer paid access to this material, a unique selling proposition. For publishers in Poland or anywhere, the fear of erecting a paywall is that it will cut into pageviews, which sell ads. Piano does not “cannibalize ad revenues but provides a new revenue stream to publishers,” Richards said. The company provides reams of data and market research to help publishers determine which content goes premium.

“It’s a bit of a craps game when you launch,” he said. “We conduct a detailed content analysis of the site using quantitative and qualitative techniques. Publishers get a massive report explaining our rationale for including a particular piece of content in Piano’s system. Ultimately it’s up to them to decide what to close.”

Poland, with 38 million people and 19 million Internet users, is a big leap in scale for Piano, compared to Slovakia’s 5 million people and Slovenia’s 2 million. Like its predecessors, though, Poland is a single-language country whose media is relatively isolated — likely a better fit for a national paywall than other, larger European countries. Piano would probably have a much tougher time in the geographically expansive, multilingual United States. (Can you imagine Dow Jones and The New York Times Co. agreeing to unite behind a common paywall?)

Uchanksi said he has no fixed expectations for; he does not yet know what a “successful” number of subscribers would be. The site attracts about 400,000 unique visitors per month, Uchanski said, and about 2 million page views. Ringier Axel Springer runs news sites 10 times that size, he said. He will study the data carefully over the next several months.

“How does [a] paying user behave in this situation? How does [a] nonpaying user behave? How much do paying users want to spend? And what’s the retention rate of those users? Et cetera. I don’t have a feeling that this is a ready-made business model. It’s a beginning,” Uchanski said.

Piano says it is “in negotiations with publishers on several continents” and plans to launch in another market by the end of 2012.

POSTED     July 18, 2012, 5:43 p.m.
SEE MORE ON Business Models
Show comments  
Show tags
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
Newsonomics: On end games and end times
Can publishers find a sustainable business model this new age of Facebook/Apple/Snapchat/Twitter/Google distributed content? And is local news destined to be left behind?
What Scribd’s growing pains mean for the future of digital content subscription models
It turns out that ebook subscription models don’t work very well when people read too much. So what happens next?
How research (and PowerPoints) became the backbone of National Journal’s membership program
“We no longer look at National Journal simply as a news source, but as a collection of resources, as well as a collection of experts we can turn to on occasion.”
What to read next
A blow for mobile advertising: The next version of Safari will let users block ads on iPhones and iPads
Think making money on mobile advertising is hard now? Think how much more difficult it will be with a significant share of your audience is blocking all your ads — all with a simple download from the App Store.
1763For news organizations, this was the most important set of Apple announcements in years
A new Flipboard-clone with massive potential reach, R.I.P. Newsstand, and news stories embedded deeper inside iOS — it was a big day for news on iPhones and iPads.
762Newsonomics: 10 numbers that define the news business today
From video to social, from mobile to paywalls — these data points help define where we are in the “future of news” today, like it or not.
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 ➚
Voice Media Group
National Journal
Global Voices
Detroit Free Press and Detroit News
Investigative News Network
Foreign Policy
Journal Register Co.
San Diego News Network
BBC News