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The Arizona Republic introduces new subscription model

by John Zidich - Aug. 12, 2012 12:00 AM

Republic Media CEO

For more than 122 years, The Arizona Republic has been a constant.

News on paper. Delivered daily. A part of your life.

In that time, we have prided ourselves on keeping pace with a changing world, being a part of our growing community, and making a difference.

And look at how much the world has changed -- not even in 120 years, but in just the past 20 years.

In the 1990s, we published two newspapers, The Republic and The Phoenix Gazette. The world was delivered to you in the printed newspaper every day.

But quickly, the speed of the printing press was being overtaken by the speed of information in the modern age.

In 1995, less than two years before The Gazette was discontinued, we launched our website, azcentral.com. Information spread in the moment.

Today, we know the world comes to you not just in the print edition and on your computer, but on your tablet and your smartphone. And The Republic continues to evolve to meet your needs.

We're as proud as we have ever been about the print edition that is a part of our community. Today, the Sunday Republic print edition reaches the largest single audience in the region, with more than 1.1 million readers. The daily print edition reaches close to 750,000 readers each day.

We work to make each day's print edition one that serves you very well even in an Internet age.

We're also committed to meeting you in more places than ever. Azcentral.com is the largest local news site in the Valley today, with more than 1.1 billion pages viewed last year. We've introduced digital platforms for your smartphone and tablet and have new innovative products coming in the months ahead.

Our success is due to one thing: the commitment to great content with a well-rounded news report and a primary focus on deep, quality local stories. Our newsroom -- by far the largest newsgathering organization in Arizona -- brings you the state's best coverage. Breaking news 24 hours a day. Rich photo and video content. Great storytelling. Deep analysis.

But amid all this change, our business model has stayed the same -- based primarily on print distribution.

That model will not work for the future. To meet your demands, to meet you in every format -- and to continue to be a vibrant, positive part of our community -- that model has to change.

Beginning in September, we launch a new subscription model. The new model is not based on distribution of the printed product. It is based on all the content we produce -- your content -- in any form.

Because we're delivering news to you in print, website, mobile or tablet form, our new subscription model will include options that range from Full Access digital-only to Full Access with seven-day delivery of the print edition. The cost will vary based on the offer you choose, and most subscriptions will increase in price.

The Full Access digital-only subscription is the major change in this new model. The cost will be $10 per month, just 33 cents a day, and will provide full access to all of our digital content. Non-subscribers can view a limited number of articles before they are required to subscribe.

In any format, on any device, our goal is to make a difference, as it always has been. We're committed to covering our community and being a part of it. And it shows in our words and our deeds. We were named a Pulitzer Prize finalist for our coverage of last year's Tucson-area shooting. We gave $3.6 million to area non-profits this year, part of the more than $67 million we have given since 1993 to support the community's most vulnerable.

In the year ahead, we'll continue this commitment to quality, to our community. You'll notice new sections in the print edition, improvements to our mobile and tablet apps and new digital platforms. You'll see increased emphasis on areas of coverage you have told us you care most about, from exploring Arizona to the state's economic recovery.

We're intensifying our watchdog- reporting efforts, enhancing our storytelling capabilities and tackling community- leadership initiatives to help make this a better place to live, work and play. Behind everything you read, watch or hear is the talented and dedicated group of journalists more than 350 strong committed to exposing wrongdoing, sharing great stories and helping to make Arizona grand.

Yes, it's time for the model to change. But the work we do, our purpose, will stay the course.

For comments or questions, e-mail fullaccess@republicmedia.com.

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The Arizona Republic changes access to content

4 subscription offers will be available

by Russ Wiles - Aug. 12, 2012 12:00 AM

The Republic | azcentral.com

The Arizona Republic soon will unveil a new subscription model, joining a rapidly growing number of news organizations that charge for access to their content on both print and digital platforms.

Starting Sept. 10, online users of azcentral.com who don't have a subscription to The Republic generally will need to pay if they want to continue reading a significant number of articles and related content on the website. Certain pages and material, including the home page, section fronts, obituaries, classified advertising and stories with a strong public-safety focus, will remain available.

Non-subscribers will have subscription options available to maintain access to Republic Media content, with prices depending on the plan chosen.

All subscription offers include full access. The four plans range from Full Access digital-only subscriptions to Full Access including home delivery of the print edition of The Republic seven days a week. Each subscription will allow digital access for two online users, through desktops, laptops, tablets, smartphones and other electronic devices.

Current Republic subscribers will receive a letter in the mail in the coming week explaining the program in greater detail, with information tailored to their current subscription package.

"First and foremost, this does not change what we do as a company or the charter we have in serving the local community," said John Zidich, chief executive officer of Republic Media, a unit of Gannett Co., Inc., that operates the Republic, as well as 12 News and other media businesses in the Valley. "This is a change in our business model, and the change is fairly simple."

Until now, The Republic's subscriptions were for home delivery of the print edition of The Republic. Under the new model, subscriptions will be for full access to news and information content across platforms. More publishers now recognize that consumers are willing to pay for news as they already pay for books, music, satellite radio and other information on desktops, smartphones, tablets and other electronic devices.

"People are much more used to paying to access information and entertainment than they were a few years ago," said L. Gordon Crovitz, co-founder of Press+, a company that helps publishers build online-subscription models. "By the end of 2012, we think it will be the exception for a U.S. newspaper to be free on the Web anymore."

Most subscription prices will rise under the new content subscription model. Most subscribers will see an increase of 7 cents to 25 cents a day, Zidich said. Consumers who choose a Full Access digital-only subscription will pay $10 a month.

A growing trend

Certain publishers, especially those covering business news and other niche areas, for years have charged for digital subscriptions. But many news-industry analysts point to last year's online-pay launch by the New York Times for providing a key precedent for other media companies.

The New York Times Co. recently revealed that it had 532,000 paid digital subscribers as of midyear, with rising circulation revenue. The Financial Times recently announced that for the first time, paid digital subscriptions now exceed its paid print circulation.

"The thought was that people would pay for business newspapers because they could expense the costs to their employers," said Ken Doctor, a news-industry analyst. "But with the success of the New York Times, it has been a green light for others."

Gannett has been unveiling new content subscription models at many of its more than 80 community newspapers around the nation, after having tested different approaches for the past 21/2 years. After an initial drop, online traffic typically returns, Zidich said. For example, a Gannett newspaper in St. George, Utah, one of the first markets launched, now has 20 percent more page views than before its new subscription model launched, Zidich said.

Republic Media begins this new model in a strong position, he added. The print edition of The Republic reaches close to 750,000 readers daily and more than 1.1 million on Sunday. In 2011, azcentral.com counted more than 1.1 billion page views.

Republic Media offers a "unique depth of journalism resources," Zidich said. Limited use for non-subscribers

Some news sites don't give any online access to non-subscribers, but it's more common for publishers' websites, such as azcentral.com, to provide a modest amount of viewing for first-time or occasional users, while charging regular readers. A typical model allows for free browsing of the news site's home page and section fronts. Generally, there is no charge for the first 10 to 20 articles read each month.

Media companies don't want to turn away users who might come to their sites through online searches, including searches done through mobile devices. Page views made through tablets and smartphones jumped 65 percent over a recent 12-month period tracked by the Newspaper Association of America.

Customers also typically receive complete access if they subscribe to the print version of a newspaper.

"The real idea is having bundled subscriptions," said Rick Edmonds of the journalism-focused Poynter Institute and co-author of a recent study on the state of the news media for the Pew Research Center.

The pricing strategy adopted by Republic Media is known as a metered approach in that it allows some viewing by non-subscribers of a limited number of stories each month, compared with more distinct barriers, sometimes known as "pay walls."

"In our strategy, content is king, and the foundation of the model's success," said Gracia Martore, president and chief executive officer of Gannett Co., Inc., parent of Republic Media, in discussing second-quarter earnings and the outlook ahead. "Under the new plan, for a monthly fee, all subscribers in our markets will get access to all of our content on all digital platforms when and where they want it, all during the course of the day."

Subscribers can choose from among several offers, with prices rising with the frequency of home delivery of the print edition, she said. Gannett projects a 25 percent increase in subscription revenue by the end of 2013, which is expected to translate into $100 million in additional earnings next year. Gannett's net income of $459 million in 2011 was down 22 percent from 2010. The company's revenue has dropped each year since 2006.

Gannett's community-newspaper division already has noticed its "first uptick in circulation revenue" in years, Martore said, even though the new subscription model hasn't been rolled out yet in metro Phoenix and many other markets. Valued content

With the newspaper industry facing long-term print-circulation declines, executives have wrestled with the dilemma of how to start charging for all content across all platforms. The new pricing focus renews the industry's hopes for long-term viability.

"The newspaper industry enters 2012 neither dying nor assured of a stable future," stated the Pew report, written earlier this year.

Traditional print advertising has declined for six straight years, and those losses still outweigh advertising gains and circulation improvements on the digital side, the report said. A study by researcher eMarketer predicts that online-advertising expenditures in the U.S. will exceed the total spent on print magazine and newspaper ads in 2012 for the first time ever.

According to the Pew report, the various digital-circulation packages being unveiled throughout the industry "re-establish the principle that users should pay for valued content, expensive to produce, whatever the platform."

Poynter's Edmonds said that to justify their online subscription models, it's important that newspapers and their websites provide value-added content that people can't easily find elsewhere.

Randy Lovely, Republic Media's senior vice president for news and audience development, said internal research shows that readers and viewers place a lot of value on high-quality news coverage and investigative reports. Republic readers are particularly interested in such topics as the state's economic recovery, Boomer retirement and health issues, and ways to explore Arizona. Users of azcentral.com care most about breaking news, neighborhood news and things to do, he said.

Crovitz of Press+, a former publisher at the Wall Street Journal, believes the switch to paid online content will make newspapers and their websites more valuable to subscribers. "This trend will strengthen journalism because publishers will rely more on satisfying readers than on being able to sell great advertising," he said.

Questions and answers

Here's key information about Republic Media's new content subscription model:

What is the new model?

The new model is based on full access to the content produced by The Arizona Republic, across all platforms, which include print, Web, tablet and mobile. The change is in how you will be charged.

Historically, Republic Media charged only for distribution of printed content. Access to content via digital platforms was free. That model worked when the news and information world was limited to traditional media formats. In today's environment, driven by technology and consumer demand, Republic Media is focusing on development of unique, quality local content.

The major change is valuing all of the content produced and not the cost of print distribution. The biggest impact will be limited access to content via digital platforms unless you have a subscription.

What are the subscription options?

There will be four offers. All subscriptions will have full access to The Republic's content through every digital platform. The range in pricing will be determined by how many days you chose to have home delivery of the print edition. A Full Access digital-only subscription will be offered. The cost for digital-only will be $10 per month.

What happens if I do not have a subscription? Can I still use azcentral.com?

This model is not a "pay wall." There will be a metered approach to accessing content via digital platforms. Depending on the platform (desktop or mobile, for example), there will be limited access to azcentral.com. Certain parts of the site will be available, and non-subscribers will have a limited number of articles they can view without being required to subscribe.

Desktop users will be able to view up to 20 articles each month. An article generally includes the story, along with any accompanying photos, videos or sidebars. An onscreen meter will track a non-subscriber's use. When the 20-article limit is reached, users will be required to subscribe to receive additional access. Certain information such as obituaries and classified ads will be available to anyone without counting toward the meter, as will certain associated sites such as careerbuilder.com. Non-subscribers will be able to browse the azcentral.com home page and section fronts. When breaking news happens with a public-safety impact, editors will have the option of making those articles available.

Mobile and tablet users will have full access to section fronts and classified pages. Users also will have limited access to content before being prompted to log in or subscribe.

What is meant by digital?

Digital describes how subscribers will be able to access The Republic's news and information content through desktop and laptop computers, tablets, smartphones and other electronic devices.

Can I get a family plan?

With each subscription, you can have two online users, with different user names.

If I currently subscribe but don't want online access, will I be affected?

There is no longer a subscription offer to just a portion of The Republic's content. The subscription offers are to full access to The Republic's news and information content on all platforms. You still will have subscription offers that include home delivery of the print edition. The rates for these subscription plans in most cases will increase. Most subscribers will see an increase of 7 cents to 25 cents a day.

If I subscribe and want online access, must I do anything?

Yes. You will need to activate your online access. Information on how to activate your subscription will be provided. Republic Media has invested significantly in training its staff to assist subscribers through this process.

When will all this happen?

The new content subscription model will start Sept. 10.

Will there be further announcements?

If you are a current Republic subscriber, look for a letter in the mail in the coming week explaining the new content subscription model in greater detail, with information tailored to your subscription.

More information: faq.azcentral.com.