Factors influencing consumer adoption of news paywalls in Kenya
Date
2023
Authors
Auma, C. M. S.
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Publisher
Strathmore University
Abstract
The advertising-dependent revenue model that has supported news publishers thus far has come under significant pressure due to digital disruption. This has led publishers across the globe to embark on new models, especially reader revenue, with paywalls being the most tried. The purpose of the study was to assess factors influencing the consumer adoption of the paywall revenue model by news media organisations in Kenya. The specific objectives of the study were; to establish the influence of economic factors on news users’ decisions to subscribe to news paywalls in Kenya; to determine the extent to which availability of alternative news sources affect consumers’ decisions to adopt news paywalls; to establish influence of user characteristics on the adoption of news paywalls; and to determine the influence of media house characteristics on the user adoption of news paywalls. The study was anchored on Uses and Gratification Theory and the Reinventing Your Business Model, and adopted a descriptive survey design as well as a correlation research design. The study targeted news consumers of which 400 online news consumers in Nairobi County were sampled through simple random sampling approach. The study collected quantitative data using questionnaires, which were then analysed through descriptive statistics in the form of frequencies, percentages, means and standards deviations, while the Pearson Product-Moment Correlation Coefficient technique was utilized to test the relationship between the variables. The analysis was done using Statistical Package for Social Sciences (SPSS) version 25. The study found that the rate of adoption of paywall news was still low in Kenya, and that news consumers did not see much distinction between news from mainstream publishers and those from social media and blogs. Most of the news consumers would purchase online news so long as the paywall was affordable. Moreover, comprehensive and inclusive coverage of news would also encourage adoption of paywall news among the consumers. Quality of news was also a major determinant. The study established that economic factors, availability of alternative news sources, users’ characteristics and media house characteristics significantly influenced the adoption of paywall news at 95% confidence level. Media houses can partner with internet service providers to first boost access and awareness regarding paywalls. This would allow new users of the internet, for example, at a subsidized data cost, access unique news content.
Key words: news media, paywalls, audience revenue, business models
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Full- text thesis
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Citation
Auma, C. M. S. (2023). Factors influencing consumer adoption of news paywalls in Kenya [Strathmore University]. http://hdl.handle.net/11071/13364