Who pays for news?

Independent journalism is one of the cornerstones of democracy – and it’s on shaky ground. Since the dawn of the internet, major media houses, the traditional gatekeepers of ‘truth’, have been under threat. Social media was the nail in the coffin for many iconic publications. As advertising revenue drained away and news became ‘content’, one publication after the next was shut down. In the US, so-called ‘vulture capitalists’ – unscrupulous private equity firms – bought up one Pulitzer prize-winning newspaper after the next to sell for scrap. Locally, Independent Media has been the casualty of similar behaviour.

The publications that remain are struggling to hold on. Some sites like News24 have introduced a paywall to limit access, whereas others like Daily Maverick appeal to their readers’ social conscience and rely on donations (and grant funding) to pay the salaries of their journalists. However, the vast majority of news sites are still stuck in the original internet model of free access with banner advertising and pop-ups.

During the 2024 general election, many of us relied on trusted news sources for updates and interpretation. This got us thinking: Who pays for news?‍

We analysed the spending data of 48,000 South Africans and isolated payments to local and international news platforms. The results are sobering. Only 5% of users in our sample paid for news. Of this slice, Media24 has the largest share by far, but this metric needs a disclaimer: We can’t be sure whether people are paying for important investigative journalism or to access other content from the publisher that also sits behind the paywall, like tabloid stories from You and Huisgenoot.

A News24 subscription costs R75 pm – our data confirms that this is the average payment made.

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Daily Maverick relies on public support through their Maverick Insider programme. Even though the site is free, readers are encouraged to donate as much as they feel comfortable donating. There are some benefits to becoming an Insider, including PnP asap! and Uber discounts. Among the users in our sample, one out of every 150 people made a contribution to Daily Maverick, and the average amount was R175.

An almost identical number made payments to Arena Holdings, the group that publishes Business Day and Financial Mail, among others. A BusinessLIVE Premium subscription costs R129 pm, but our data shows that the average transaction value among subscribers was slightly higher, at R146 pm. (There are other subscription packages available, some involving a combination of digital and print.)

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This is a sample of individual consumers. Of course, many companies subscribe to trusted news sources and make these sources available to their employees. Unfortunately, we can’t see how these subscriptions affect the numbers. But even so, in South Africa, it’s clear that the inclination to pay for news is low. Sadly, this means that the advertising-based model is likely to win out.

In amongst all the noise and clickbait, trying to determine which sources are credible will remain a challenge.

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