Politiken adjust subscription model, two reasons why

Today, in an article in MediaWatch, Politiken announced that it’s going to adjust its digital subscription. Politiken currently has a metered model with free access to 25 articles per month and two types of subscription: one that costs 44 DKK monthly, and one that costs 66 DKK and also includes membership of the Politiken Plus shopping program.

With the adjustment announced today, the 44 DKK option is closed so that all subscribers must pay 66 DKK per month. Furthermore, the number of free articles will be reduced (even though it remains unclear just how big that reduction will be). The MediaWatch article does not specify when the adjustment will take place.

It’s hardly surprising that Politiken adjusts their digital subscription model this way. There are two reasons for this.

First, the difference between what Politiken and Berlingske, their most comparable competitor online, offer has been quite large. They both use the metered model, but while Politiken would monthly give away 25 article before charging 44 DKK, Berlingske only give free access to 10 articles before charging 79 DKK. The fact that there has been almost as many digital subscribers to Berlingske (who charges more for quantitatively less) indicates that Politiken could actually tweak their subscription model to the organization’s own benefit.

Second, The New York Times did the same. According to people within the organization, Politiken largely based their digital subscription strategy on that of the NYT, and almost exactly one year after the NYT launched their paywall (on April 12, 2012 – it was launched in March, 2011), they downsized the number of free articles from 20 to ten. In short, the strategy was to initially test the market and make the customers used to paying for online news – and then adjust the subscription model to one that would be commercially viable for the news organization. This modus operandi has now been reenacted by Politiken, the difference being that the Danish news organization conducted the adjust only eight months after the initial implementation.

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