Reuters News Introduces Digital Subscriptions at $1 Per Week, Entering Crowded Market of Paywall News Providers
Reuters News has announced the launch of digital subscriptions, where visitors will now have to pay $1 per week for access to its website. This move comes after a three-year delay due to a dispute with financial data provider LSEG, resulting in a lower pricing plan than initially anticipated.
The subscriptions will first be available in Canada, followed by parts of Europe and the U.S, with plans for global expansion. This announcement coincides with CNN's launch of a paywall, charging $3.99 a month for access to its content.
Reuters President Paul Bascobert stated that this new subscription plan will allow Reuters to expand its award-winning coverage at an affordable price, while also investing in reporting and products for subscribers.
The dispute with LSEG, which was not detailed in the statement, had previously halted Reuters' plans for the paywall launch in 2021. Refinitiv, now part of LSEG, accounted for about half of Reuters' revenue, with the news agency generating additional revenue from its media agency operations and events business.
In the three months leading to June 30, Reuters News saw a 7% increase in revenue due to growth in its agency business and contractual price adjustments. Refinitiv, previously owned by Thomson Reuters until its acquisition by Blackstone Group and subsequent sale to LSEG, is now obligated to provide news and editorial content to Reuters until 2048.
This move by Reuters to implement digital subscriptions marks a significant shift in its revenue model and highlights the ongoing trend of major news organizations charging for online content. As a consumer, it is important to consider the value of the content being provided and whether the subscription cost aligns with your needs and preferences.
