Note: This article was created with help of ChatGPT. Its main purpose is to deepen our understanding of the publishing industry, one of the primary industries we serve.
With the recent turbulence, the news industry seems to be on a downward spiral. Yes, times are tough, but in a sense, this is a natural cycle of social change, economics, and innovation. Whatever we may think about it, businesses face only two options: adapt and survive or close their doors.
Publishers face only two options: adapt and survive or close their business.
If we want to think about adaptation, we first need to understand where we are. In this article, we will explore how publishers do their business online today and the options available to them for the future. We will cover the following topics:
Publishers Overview: An overview of the industry providing a comprehensive categorization of publishers.
Publishers Revenue Models: An overview of revenue streams, including subscriptions, advertising, and e-commerce.
Publisher Software Ecosystem: Tools powering publishers, from CMS to analytics and CRM systems.
Future Trends in Publishing: Predictions for the digital news industry and strategies to address declining interest in traditional news consumption.
Publishers Overview
First, who are we referring to when we talk about publishers? According to Apollo, there are 175,000 companies worldwide in the publishing industry, with 40,000 based in the USA.
This diverse industry includes book publishers, magazine publishers, newspaper publishers, and news sites. For instance, Heidi Legg notes that there are “3,000 outlets that call themselves newsrooms in America.”
We can categorize publishers based on the type of content they produce and the platforms they use to distribute it. Here’s a quick breakdown by these attributes:
News Sites: Digital platforms delivering news. They are often associated with traditional newspapers or operating independently. Examples: BBC News, HuffPost.
Academic and Educational Publishers: Specialize in textbooks, journals, and scholarly works. Examples: Springer, Oxford University Press.
From bestselling books to lifestyle magazines and news sites, publishers create a wide range of content types. (Clockwise from top left: Penguin Random House, Condé Nast, BBC News.)
2. By Format
Print Publishers: Primarily focused on physical media (books, magazines, newspapers).
Digital-Only Publishers: Operate exclusively online, such as blogs, online magazines, and news websites.
Hybrid Publishers: Combine print and digital formats.
3. By Industry Focus
General Media Publishers: Cover a wide range of topics for diverse audiences. Examples: Time, Forbes.
Specialized or Niche Publishers: Target specific industries or interests, such as science, fashion, or technology. Examples: Nature (science), Variety (entertainment).
4. By Revenue Model
Subscription-Based: Rely on subscriber fees, common among digital publishers and news sites.
Ad-Supported: Generate revenue through advertising, often seen in online magazines and free news sites.
Hybrid Models: Combine subscriptions, advertising, and other revenue streams.
5. By Size
Large Publishers: Big corporations with global reach and extensive resources. Examples: Penguin Random House, The New York Times Company.
Medium Publishers: Regional or national publishers with a focused audience and moderate resources. Examples: Regional newspapers or niche magazine publishers.
Small/Independent Publishers: Smaller operations with limited reach, often focused on niche topics or local communities. Examples: Local news sites or indie book publishers.
Micro Publishers: Tiny publishers, often run by individuals, catering to very specific audiences. Examples: Zines or hyperlocal blogs.
Where News Sites Fit In
News sites are publishers because they create, curate, and distribute original content. Their primary focus is on timely news and analysis.
If they operate solely online, they are digital publishers. If they are linked to a traditional print newspaper, they are considered part of the newspaper publishing category.
Some may also overlap with magazine publishers if they produce in-depth, periodic content akin to magazines.
It’s clear that all publishers do not face the same challenges. In this article, we focus specifically on digital publishers of news and magazines.
Publishers Revenue Models
Publishers rely on a variety of revenue models to sustain their operations in the digital age. The survey by the Reuters Institute for the Study of Journalism highlights the most important revenue streams for publishers in 2024.
Here’s an overview of the categories listed in the diagram above.
Subscription/Membership
Subscription and membership models involve readers paying regularly for premium content. This method is popular among digital publishers because it offers a reliable income.
Display Advertising
Display advertising uses banners, videos, and other visuals on websites. While it's a traditional income source, its impact has decreased due to ad blockers and privacy-focused tools.
Native Advertising
Native advertising fits into editorial content, giving readers a smoother ad experience. Publishers use it to partner with brands while keeping their audience engaged.
Events
Events are an important revenue stream. Publishers host conferences, webinars, or live gatherings. They generate income while building stronger audience connections and enhancing brand visibility.
E-Commerce
E-commerce lets publishers earn money by selling branded merchandise or using affiliate marketing. This approach works especially well for niche publishers with loyal audiences.
Related Businesses
Publishers are expanding into areas like training programs, consulting services, and content licensing. These ventures add to their revenue streams and lessen reliance on ads or subscriptions.
Philanthropic Funds/Foundations
Philanthropic funding supports publishers by providing grants for investigative journalism or community-oriented projects. This model is essential for nonprofit news organizations and small publishers.
Many publishers ask their audience for financial support through donations. This approach works best for organizations with strong reader trust and loyalty.
Micropayment
Micropayment systems let readers pay small, one-time fees for specific articles or features. This model offers an alternative to subscriptions, appealing to occasional readers seeking selective access.
Publisher Software Ecosystem
Supporting publishers' operations and revenue models requires a specific software ecosystem.
Typically, it consists of the following components:
Content Management System (CMS)
A CMS allows publishers to create, manage, and publish content seamlessly across websites and platforms. It provides tools for organizing content, streamlining workflows, and ensuring scalability for growing digital operations.
Paywall and subscription management tools enable publishers to monetize their content by implementing flexible access models, such as pay-per-article or subscription plans. These platforms help track user engagement, manage payments, and optimize revenue strategies.
A CDP collects and unifies first-party audience data from various channels to create comprehensive user profiles. This enables publishers to deliver personalized content, improve user experiences, and enhance audience monetization.
DMPs aggregate, organize, and analyze audience data from multiple sources, enabling publishers to segment audiences for better ad targeting. They play a key role in programmatic advertising, helping publishers maximize ad revenue.
Analytics and reporting tools provide publishers with insights into audience behavior, content performance, and traffic sources. These platforms help inform editorial strategies, improve engagement, and optimize monetization efforts.
Ad management platforms help publishers optimize ad inventory, automate ad delivery, and maximize revenue through programmatic advertising. They connect publishers with advertisers, facilitating real-time bidding and targeted ad placement.
Video management and live streaming platforms allow publishers to host, distribute, and monetize video content efficiently. These tools include features like video-on-demand, live event streaming, analytics, and integration with ad systems.
Email marketing tools enable publishers to create and distribute newsletters, manage subscriber lists, and automate email campaigns. They help drive audience engagement, retain subscribers, and deliver personalized content to targeted segments.
This is what a user journey in a publisher's ecosystem might look like:
User lands on a page (CMS): A user arrives on a page generated by the CMS. They interact with content such as articles, videos, or embedded ads.
Content engagement and ad delivery (Ads): Based on the user’s profile, the ad management system displays targeted ads. It leverages data from the CDP or DMP if available, to show relevant content.
Subscription or registration: The user may be prompted to subscribe for paywalled content. When they register or subscribe, their information is sent to the CDP. A detailed profile is created for personalized engagement.
Data collection (CDP): The CDP collects and stores data from various interactions (page views, content preferences, ad engagement, etc.). It builds a unified profile of the user across sessions.
Audience segmentation (DMP): For anonymous visitors who do not register or subscribe, the DMP segments them based on anonymous data (e.g., behavior, interests). This is used for ad targeting without creating a personal profile.
Behavioral insights (Analytics and Reporting): All interactions are tracked by the analytics system. It provides insights into content performance, user engagement, and traffic. These insights inform editorial and marketing strategies.
Engagement and personalization (Email and Video):
Email: If the user opts into newsletters, the email marketing system can send targeted newsletters. It's personalized using data from the CDP.
Video Management: For users engaging with video content, data flows to the CDP. It is enriching their profile with video preferences to personalize their content experience.
Here are two examples of software ecosystems: one for a mid-scale publisher and one for a large-scale publisher.
Video hosting, live streaming, and engagement analytics
Similarities and Differences Among Publishers, SaaS, and E-commerce
We think it might be interesting to compare publishers with SaaS and e-commerce companies. This comparison can help us better understand the common problems publishers face and the ways they address them.
Publishers focus on content-driven engagement and loyalty, often monetized via ads or subscriptions.
SaaS companies provide ongoing utility through software, emphasizing active usage and long-term retention.
eCommerce businesses center on transactions, with retention tied to convenience, pricing, and service quality.
Aspect
Publishers
SaaS
eCommerce
Core Offering
Content (articles, videos, news, etc.)
Software tools and platforms
Physical or digital products
User Interaction
Passive (consuming content)
Active (using the software to complete tasks)
Transactional (browsing, purchasing)
Value Proposition
Inform, educate, or entertain
Solve specific problems or streamline workflows
Provide goods quickly and conveniently
Revenue Model
Ads, subscriptions, paywalls
Subscriptions, upsells
Product sales, subscriptions (optional)
Retention Tactics
Content updates and personalization
Feature updates, onboarding, and support
Loyalty programs, discounts, and fast delivery
Engagement Metrics
Time on site, article views, subscriptions
User activity, retention, MRR (monthly recurring revenue)
Conversion rates, cart size, repeat purchases
Support Needs
Low to moderate (e.g., billing, access)
High (technical issues, onboarding)
Moderate (shipping, returns, product queries)
When it comes to the software ecosystem, here are the main observations:
Publishers and e-commerce share complexity:
Both rely on a broad ecosystem of tools to manage operations, engage customers, and optimize revenue streams.
Publishers use tools like CMS, CDP, analytics, ad managers, and personalization engines. eCommerce businesses use inventory management, loyalty platforms, personalization tools, and advertising systems.
SaaS has a simpler stack:
SaaS companies focus on their core product. Supporting tools like CRM, marketing automation, and product analytics complement this. They don’t manage the breadth of external systems that publishers or eCommerce businesses require.
Customization and flexibility:
Publishers and eCommerce businesses need flexible systems that integrate with various third-party tools. This is reflecting their diverse revenue models and operational needs.
SaaS companies, by contrast, focus on optimizing the delivery of their single, primary offering.
Future Trends in Digital Publishing
As we mentioned at the beginning, publishers have only two options: adapt and survive or close their business. Here are a few things they could do. First, we present ChatGPT’s perspective on the topic, followed by ideas from publishers themselves.
1. New Revenue Models
Micropayments for articles:
Instead of full subscriptions, publishers may adopt pay-per-article models using platforms like Blendle. This would allow readers to pay small amounts for individual stories they find interesting.
This caters to casual readers who aren’t willing to commit to subscriptions.
Membership and loyalty programs:
Offering more than content, publishers may introduce membership tiers. These would include perks like exclusive events, merchandise, or ad-free experiences, like Patreon-style support.
Non-News revenue streams:
Diversification into e-commerce (curated product recommendations, partnerships) or education (masterclasses, expert webinars) to create extra revenue streams.
2. Enhanced Audience Engagement
Personalization and AI-driven recommendations:
Publishers will invest in personalization engines that recommend articles, videos, and topics based on individual reader behavior. This would be similar to how Netflix or Spotify curates content.
Interactive and immersive content:
Interactive data visualizations and quizzes to make stories more engaging and participatory.
Community features:
Publishers could build forums, live Q&A sessions, and interactive comment sections. The goal would be to foster a sense of belonging and make news consumption more engaging.
3. Expansion into New Formats
Audio and video dominance:
Growth in podcasts, audio articles, and live video reporting as readers shift to audio-visual formats. The aim would be convenience and deeper engagement.
Partnerships with streaming platforms for exclusive documentaries or series based on investigative reporting.
Short-form content:
Leveraging platforms like YouTube Shorts, or Instagram Reels to create bite-sized, attention-grabbing news segments targeting younger audiences.
4. Fighting Misinformation
Verified and trusted journalism:
Greater focus on fact-checking initiatives and collaboration with platforms like Google and Facebook to combat misinformation and build trust.
Transparency in reporting processes and showcasing how stories are verified.
Niche expertise:
Shifting focus to specialized, in-depth coverage in niche areas (e.g., climate change, tech policy) . This would help publishers differentiate from the endless stream of free general news.
5. Leveraging AI and Automation
Content generation:
AI tools like ChatGPT can assist in creating quick updates, summaries, and routine reports. This would free up human journalists for investigative and high-quality reporting.
Automated translation to expand into new markets without significant costs.
Audience analytics:
Using AI to track and analyze reader preferences in real time. This would allow dynamic adjustments to headlines, formats, or story prominence.
6. Hyperlocal and Community News
Local focus:
Pivoting toward hyperlocal news to address the information gaps left by larger news outlets. Offering value that national or global outlets can’t replicate.
Community partnerships:
Partnering with local organizations, schools, and businesses to integrate community-relevant news and solutions into their offerings.
Changes in the Face of the Potential End of the Referral Model
In response to the potential end of the referral model (social media, search), publishers plan to work harder on building direct connections with consumers. They will focus on channels they can control more, such as websites, apps, newsletters, and podcasts.
Other social media platforms like WhatsApp or Threads could play a much bigger role. Some early adopters of WhatsApp's Channels report that it is already generating more referrals than Facebook and X.
Addressing the Further Upheaval of the Journalism Business
The journalism business will be far from calm waters for a long time yet. To address slowing subscriber growth, publishers will introduce more bundled products to keep users coming back.
Other tactics include offering cheaper “lite” versions or personalized pricing based on trial usage.
More Audio and Video Content
With the increasing popularity of podcasts and videos, especially among younger generations, publishers will produce more of this content. Vertical videos and filmed podcasts enable reaching larger audiences.
Fighting News Avoidance
Publishers will also need to tackle the growing issue of news avoidance. Some strategies include offering clearer explanations of complex stories, emphasizing solution-oriented or constructive journalism, and simplifying language. AI tools could assist audiences by reformatting news into more accessible formats.
AI Usage
Despite concerns about trust and intellectual property, publishers see opportunities with AI to make their businesses more efficient and relevant to audiences.
AI applications relevant to publishers include summarization, headline testing, copyediting, note-taking, transcription, translations, AI presenters, newsreaders, and more.
Conclusion
With the dominance of social media, increasing news fatigue, and the rise of AI, the threats to publishers might seem existential.
However, this is not the first crisis publishers have faced. As we’ve seen with the gradual acceptance of paid subscriptions over the past decade, there is still a demand for quality journalism. Publishers have shown resilience before and are well-equipped to navigate this new challenge.
