Why the Toronto Star Abandoned its Paywall. And What`s Next.

Why the Toronto Star Abandoned
its Paywall. And What’s Next.
SANDY
MACLEOD
Chief Operating Officer Print
Toronto Star & Metro
Toronto Star Paywall
Sandy MacLeod
COO, Print
Star Media Group
October 20, 2015
Question: Why did the Toronto Star drop its paywall?
Answer:
It was not a
growth strategy
… and let me tell you why
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Most publishers now have some type of paid digital effect
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Newspapers are experimenting with various models
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Approach
Description
Examples
Our Assessment
Closed
Content only available online to
paid subscribers – either print or
online or both
• Significantly limits audience growth
potential
• Risks advertising revenues
• Endangers strength of brand relevance
Freemium
Some content available online for
free, some content only available
to paid subscribers
• Protects brand relevance
• Gives subscribers incentive to continue
paying
Metered
All content available online for
free up to a specified number of
pages per time period. After limit
is reached, only available for paid
subscribers.
• Holds audiences
• Allows sampling
• Can be porous
In 2013, the Toronto Star took a metered approach
Approach
• Allowed 10 FREE articles per mth
• Sales messages at 3, 7 & 10 articles
Technology
• Metering technology provided by a
third party
Support
• Fully supported by the newsroom
• Necessary funding was available
Price
Timing
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• $9.99 CDN per month
• Launched summer 2013
• Free access via social media links
• Apps kept outside paywall
• Adequate staffing
Marketing efforts targeted three specific groups:
Target Groups
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Rationale
Objectives
1. Current Toronto Star
Print Subscribers
• Favour a newspaper format and
are more willing to pay for the Star
content
• Encourage current
subscribers to Sign Up
Now
2. Heavy Star.com Users
• Reading Experience: Depth on
content, context, analysis,
clean/simple
• Transition customers to
paid content
3. Former Toronto Star
Subscribers
• Are identifiable, allowing for us to
get incredibly targeted with a
unique marketing message
• Reintroduce and remind
consumers of the unique
offering the Star provides
Wide range of marketing tactics used to encourage adoption
5 reasons to subscribe to Toronto Star Digital Access NOW:
1. Get 24/7 Unlimited access to thestar.com
articles.
2. Get FREE thestar.com login id’s for two
additional users.
3. Get FREE 7 day access to Toronto Star
Newspaper replica edition.
4. Get FREE Saturday Star home delivery
in the GTA*.
5. SAVE 90% off the regular rate!
Only $0.99
+ t a x fo r t h e fi r s t m o n t h
Sign up today at
thestar.com/getaccess
*FR EE Saturday Hom e D elivery in the G TA, as long as you m aintain your D igitalAccess subscription, which is only 99 cents + tax your fi
rst month and then $9.99 + tax per month thereafter. FREE replica and FREE logins are only available for as long as you maintain your
subscription. GTA includes most areas within Toronto, Peel, York, and Durham region. Offer ends December 31, 2013.
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In-paper promotion
Digital display
Direct mail
Email campaigns
IVR System
Call Centre
Other newspaper
Magazine
Radio
Outdoor
The Toronto Star paywall results:
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Great early momentum
Hit our ceiling quickly
Acquisition cost was high
Digital traffic dropped more than expected
And, interestingly, other newspapers (almost
without exception) experienced similar results
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Despite mediocre results, thestar.com would still
have a paywall, if not for a potential Game Changer
The opportunity to
launch a tablet app
was identified as a
growth strategy.
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Star Touch, a free daily tablet edition, launched September 15th
• Download by 5:30AM
• Updated 1X per day
• Interactive content and
advertising
• Users engaged through:
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•
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Photo galleries
Maps
Videos
Audio clips
Fact boxes
While there are risks, this is a great opportunity
1.
Reinvigorate the Star brand and the reach of our journalism
• Attract new audiences
• Greater and deeper engagement
• Broadening our national reach
2. Potential for material digital revenues
• Change the conversation with advertisers
• Protect existing marketer relationships and revenues
• Develop new marketer relationships
3. The transformation of our newsroom and our entire organization
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Question: Why did the Toronto Star drop its paywall?
Answer:
We’ve chosen a
strategy focused
on growth.
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