Only a small portion of digital media subscribers are currently paying for news media, showing that the industry has a lot to learn from the booming growth of the streaming video on demand (SVOD) sector in particular.
Deloitte’s TMT predictions took a look at the state of digital media subscriptions to learn what UK adults are actually paying for across the SVOD, music, gaming and news sectors.
The report found that in 2018, half of UK adults will have at least two media subscriptions on average, but by 2020 this will increase to four.
“We expect news providers to focus increasingly on generating revenue from subscriptions, typically as a complement to advertising, given the challenges they have encountered during years of reliance on ad revenue alone.”
The high price of news media subscriptions – in comparison to SVOD and music offerings, was blamed for the lower uptake.