FT Strategies

The key to financial success for news organisations is diversification. By removing the reliance on a single audience segment or product, news organisations can reduce the risk of "revenue concentration", where over 50% of revenue comes from one source. This article from our Head of Insights, George Montagu, reflects on findings from our new report and the News Sustainability Project, which involved data from 450+ publishers. It provides a “state of the nation” view on this important topic, assessing the evolution of revenue diversification and offering tactical advice for future strategies. Read the article 👉 https://lnkd.in/eDjRD8x2

Part 2: Are monthly subscribers practically worthless? There was an important and necessary discussion on my last LinkedIn Post about the relationship between subscriber growth and revenue - so the FT Strategies team decided to write a follow-up and go into more detail. https://lnkd.in/ecPnvJuW In our original post, we examined an extreme example to evidence a point - that monthly subscribers may make up a sizeable portion of the overall base (e.g. 22%) but only generate a small percentage in revenue terms (e.g. 4%). Examining four more typical examples of news subscription companies in Europe, we found: 1. A similar (albeit less extreme) phenomenon - monthly subscribers churn at a considerably higher rate than annual subscribers (40% of monthlies left after one year versus 64% annual) 2. Monthly subscribers make up 54% of total subscribers with 46% being on an annual subscription. However, once you adjust for the higher churn rate and trial discounting, monthly subscribers make up just under 25% of the revenue with annuals contributing 75%. In Y2/Y3 this trend will only get more extreme. 3. There's a need to incentivise and encourage more of those who are willing to pay for a news subscription onto longer terms (annual, as opposed to monthly). As the latest Reuters Institute report suggests - "Publishers have already signed up many of those prepared to pay, and converted some of the more intermittent payers to ongoing subscriptions or donations." In the full article we explore some of the scenarios and tests that you can run to do so. If you have more questions, we may even think about a Part 3 if I can convince Emanuele Porfiri to do so!

FT Strategies and Google News Initiative are delighted to announce additional speakers for our 2024 flagship summit, "News in the Digital Age", taking place in London on Tuesday, 3 September. We look forward to welcoming Mirja Cartia d'Asero, Styli C. and Ezra Eeman who will participate in discussions on effective strategies for growth amid today's geopolitical and economic landscape and the rapid technological shift already in motion with AI. This is an invite-only event. To express your interest in attending this community-building event that brings together leading media executives, editors and industry thought leaders, please contact programmes@ft.com. #NITDA24

💸 This month's update discusses the media industry's focus on subscriber volume over revenue, often using short-term subscriptions and discounts, which impacts financial performance. Findings from both FT Strategies analysis and the Reuters Institute for the Study of Journalism, in their 2024 Digital News Report, show that many digital subscribers pay less than full price, and the percentage of people paying for news has stabilised, suggesting a need for the industry to shift its focus to subscriber value. You can read the full update below 👇

📈 El Mundo gained 100,000+ subscribers, after taking part in a Google News Initiative & FT Strategies programme. El Mundo's north star goal of 200,000 subscribers by 2025 is a testament to its dedication to delivering high quality content that engages with its audience. The innovative approach to leveraging social media and newsletters to promote their content is a winning formula for success. With a joint effort across all departments and editorial involvement in its commercial strategy, El Mundo is setting a new standard for newsrooms. Find out more here: https://lnkd.in/e7fEpJCA

1st Berlin Revenue Conference on 01.10.2024! If you would like to learn more about "Beyond Tradition: How progressive publishers craft diversified, balanced revenue models" join us in Berlin! Joanna Levesque, Managing Director, FT Strategies --------- Joanna leads the FT Strategies business with responsibility for the P&L. She is passionate about helping clients transform and grow their businesses from an audience-led perspective. Joanna started her consulting career at Accenture and ended up leading the customer strategy practice which she led to double-digit growth, working with a range of clients across B2C and B2B companies and sectors spanning media, arts, telecommunications, consumer packaged goods and financial services. Joanna joins FT Strategies from Manifesto Growth Architects where she was one of four partners leading this independent business. --------- Top Insights from: The New York Times / Axel Springer / Schibsted MEDIA / Formula.Monks / FT Strategies / Denník N / ATLAS / Poool / The Irish Times..... The upcoming European Revenue Conference in Berlin will feature a host of influential speakers and renowned media experts from top companies including  https://media-revenue.com/ Get your Early Bird - €199.00 now and join us in Berlin! https://lnkd.in/dBRPERg8 #MediaRevenue #revenue #lineup #mx3 #mediamakersmeet #MediaConference #DigitalMonetization #MediaInnovation #berlin  #mediatrends #revenueconference #medientrends #publishing #verlage  #fachmedien #fachpresse #content #lineupsystems #axelspringer #weltgruppe #RevenueGrowth Lineup Systems / Media Makers Meet - Mx3 / Tubular Labs / Chartbeat / Financial Times / Cobus Heyl / John Schlaefli / Andrea Cooper / Dries Hendrickx

💸 Choosing the best price for a subscription product is an important yet difficult aspect of a publisher's reader revenue strategy. Making the correct pricing decision carries significant weight in attracting customers, and retaining your existing subscribers - whether you're reevaluating the pricing of an existing product or bringing in a new offering. In this article, we explore the survey method Gabor-Granger, which focuses on evaluating how much customers are willing to pay for a product within a range of predetermined price points. Read here 👉 https://lnkd.in/edzUAc6Y

🌐 Young people have a complex relationship with the news and simultaneously understand the value that news can play in their lives but are often disinterested or frustrated with how it's being delivered to them. So how can news publishers better serve them? For eight months, FT Strategies and Northwestern University Knight Lab travelled across three continents to research the behaviours and news habits of 18 to 25-year-olds. To complement our field research, we also completed a thorough literature review and convened an Advisory Board of experts with a broad range of experience across media and technology to help us distil critical themes and factors that have, and are expected to continue shaping, the news industry. Learn about our findings by downloading the report here: https://lnkd.in/e_Jgt6HH

FT Strategies and Google News Initiative are hosting the second edition of News in the Digital Age, taking place in London on Tuesday, 3 September.  Join us for insightful talks designed to give you the knowledge and tools you need to navigate the changing world of news publishing. This is an invite-only event, those interested should contact programmes@ft.com to register their interest in attending the summit in person. Here's a sneak peek into two of our main stage speaker sessions: #NITDA24

🎓 Congratulations to the Google News Initiative AI Foundation Vienna Programme graduates: heise, DER STANDARD, Ströer SE & Co. KGaA, APA – Austria Presse Agentur, TAG24 NEWS Deutschland GmbH, KURIER Medienhaus, Kleine Zeitung, Central Médiacsoport Zrt., RTL Hrvatska. Over 4 days together in Vienna, the cohort of publishers worked practically to seize the AI opportunity. The programme covered the AI journey, taking the participants from establishing their AI goals to designing prototypes for real-world AI use cases to writing a charter for responsible AI usage in their businesses. Learn more about our GNI programmes here: https://lnkd.in/e85kW4f6