Newspapers rethink paywalls as digital efforts sputter

Paywalls were supposed to help rescue newspapers from the crisis of sinking print circulation as readers shifted to getting their news online.

But with a few exceptions, they have failed to deliver much relief, prompting some news organizations to rethink their digital strategies.

Newspapers in the English-speaking world ended paywalls some 69 times through May 2015, including 41 temporary and 28 permanent drops, according to a study by University of Southern California researchers.

Paywalls "generate only a small fraction of industry revenue," with estimates ranging from one percent in the United States to 10 percent internationally, the study in July’s International Journal of Communication said.

"People are far less willing to pay for online news than for print," said USC journalism professor Mike Ananny, an author of the study.

Newspapers are in a difficult spot, he added, because online advertising generates a fraction of print’s revenue, and news organizations are already pressured by falling print circulation.

Alan Mutter, a former Chicago and San Francisco newspaper editor who now consults for media organizations, said the research confirms that paywalls have value in relatively rare circumstances.