What does Reuters' upcoming fee mean for journalism?

(CLO) Reuters recently announced it will launch a paywall service, requiring readers to pay for content on the news giant's website and mobile app.

In a message sent to registered online users earlier this month, Reuters chairman Paul Bascobert said that while some content would remain free, those seeking unlimited access would have to pay $1 a week or an annual subscription of $52. He promised this would bring “wider coverage, deeper investigation, and more innovative products.”

Reuters logo. Photo: GI

A previous attempt by Reuters to introduce a paid wall at a much higher cost of $34.99 a month was shelved shortly after its announcement in 2021. This was because Reuters' largest client at the time, financial data provider LSEG, threatened legal action if Reuters pursued the strategy, claiming it violated their news supply agreement.

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

Sources indicate that, in addition to lower costs, Reuters' new pricing plan will differ from the 2021 plan, but they could not provide further details. Reuters only stated that it will begin rolling out its digital subscription package in Canada in early October, before expanding to other countries in Europe, the US, and eventually worldwide .

In a message to current online subscribers, Bascobert stated that Reuters.com aims to be "fast, direct, and uncensored." He stressed Reuters' commitment to truth and objective reporting in an age of misinformation and unreliable sources.

However, concerns have been raised regarding the imposition of a subscription fee on Reuters, given that it has long been considered a familiar and free international news source for a large global readership. Reuters is currently the 30th largest news website in the world.

In reality, the price of $1 per week, or $4 per month, is not a large sum for readers in developing countries, but it is a significant amount for readers in countries facing many difficulties.

Additionally, some argue that those unable to pay might flock to comparable free news outlets like the BBC, NPR, or Al Jazeera. This could negatively impact Reuters' traffic and brand value.

The launch of the low price was reportedly aimed at mitigating viewership losses, and also showed that Reuters had little confidence in its subscription service, which had only one-sixth the subscriptions of Bloomberg.com, its biggest competitor.

Nevertheless, many argue that Reuters' launch of a paid subscription service is a necessary step for major news organizations, given that journalism in general can no longer rely solely on increasingly limited advertising revenue. Most major news organizations now charge for subscriptions to their digital content.

CNN recently announced it will also start charging a fee of $3.99 a month, the same as Reuters. CNN and Reuters are two of the few major news organizations in the world that have not yet adopted a subscription model, a practice that their major rivals such as the Washington Post, the Financial Times, and the New York Times have long implemented and achieved considerable success with.

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