Paywalls have become the dominant revenue engine for Dutch newspaper publishers

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Newspaper publishers have reportedly enjoyed years of steady revenue growth as an increasing number of readers prove willing to pay for news. Economists at ABN Amro forecast that income from newspaper subscriptions will continue to rise over the next two years, reaching 300 million euros, driven primarily by digital subscriptions.

Last year, Dutch daily newspaper publishers collectively generated total revenue of more than 1.2 billion euros, a 2 percent increase over the previous year. This marked the sixth consecutive year of growth since industry revenues hit a low point in 2019. The gains come almost entirely from paying readers in the digital market, whose spending rose 13 percent to 224 million euros, while advertising revenue declined.

Podcasts produced by newspaper publishers are helping fuel the growth in digital subscriptions, according to the bank. Among all genres, news podcasts have the broadest reach, offering publishers a channel through which to attract new audiences.

Articles with paywalls have become by far the most important source of income for newspaper publishers. Paying readers accounted for more than 80 percent of revenue last year. In 2005, that figure stood at roughly half, with advertisers supplying the other half. A key factor in this shift is that major technology companies such as Google and Meta have captured a substantial share of the advertising market.

A new digital upheaval - the rise of artificial intelligence - could pose a fresh threat to news media, according to ABN Amro. Technology companies such as Google, for example, now display AI-generated answers to a wide range of queries, including those about current events, directly in search results. These summaries may lead readers to believe they already have sufficient information about the news and therefore not click through to the newspaper website.

At the same time, AI also creates new opportunities for newspaper publishers, the bank also notes. Media outlets such as The Economist and the Financial Times already offer AI tools that allow users to search their article archives.

Reporting by ANP and NL Times