What does Reuters' move to charge for journalism mean?

(CLO) Reuters recently announced that it will deploy a paywall service, requiring readers to pay when reading content on the website and mobile application of this news giant.

In a message to registered online users earlier this month, Reuters president Paul Bascobert said that while some content will remain free to users, those who want unlimited access will have to pay $1 a week or an annual subscription of $52. He promised that this would bring “broader coverage, deeper investigations, more innovative products.”

Reuters news agency logo. Photo: GI

An earlier attempt by Reuters to introduce a paywall at a much higher cost of $34.99 a month was shelved shortly after it was announced in 2021. That was because Reuters' largest customer at the time, financial data provider LSEG, threatened legal action if Reuters implemented the strategy, arguing that it violated its news provision agreement.

LSEG provides about half of Reuters' revenue under a deal that guarantees the news agency at least $336 million a year until 2048. Bascobert's predecessor, Michael Friedenberg, lost his job in 2021 following a dispute with LSEG.

Reuters' new pricing plan will be different from its 2021 plan in addition to the lower costs, the sources said, but they could not provide details. Reuters said only that it would start rolling out its digital subscription plan in Canada in early October, before expanding to more countries in Europe, the United States and eventually worldwide .

In a message to current online subscribers, Bascobert said Reuters.com aims to be “fast, direct and uncensored.” He stressed the value of Reuters’ commitment to truth and impartial reporting in an era of misinformation and unreliable sources.

However, many have expressed concerns about the implementation of Reuters' paywall, as it has long been considered a familiar and free international news channel for many readers around the world. Reuters is currently the 30th largest news website in the world.

In fact, the price of 1 USD/week, or 4 USD/month, is not much for readers in developing countries, but it is a considerable amount of money for readers in countries that still face many difficulties.

There is also the possibility that those who cannot afford to pay may instead flock to free equivalents such as the BBC, NPR or Al Jazeera, which could impact Reuters' traffic and brand value.

The low price point, which is said to be aimed at mitigating viewership loss, also shows that Reuters has little faith in its subscription service, which has just one-sixth the subscriptions of Bloomberg.com, its biggest rival.

However, many also commented that Reuters's launch of a paywall service was a necessary step for major news agencies in a context where journalism in general can no longer rely solely on advertising revenue, and most major news organizations now charge subscription fees for their digital content.

CNN also recently announced that it will charge a monthly fee of $3.99, the same as Reuters. CNN and Reuters are two of the few major news agencies in the world that have not yet adopted a subscription model, something that their major competitors such as the Washington Post, FT or New York Times have long applied with certain success.

Hoang Hai (according to Reuters, CNN, The Barron)

Source: https://www.congluan.vn/viec-hang-tin-reuters-sap-thu-phi-co-y-nghia-gi-voi-bao-chi-post317774.html