Reuters News announced it will introduce digital subscriptions starting this month, offering access to its content for $1 a week. The move, which comes after a three-year delay due to a dispute with the London Stock Exchange Group (LSEG), marks Reuters’ official entry into the increasingly competitive paid news market.
Initially available in Canada, the subscription plan will expand to parts of Europe and the U.S., with plans for a global rollout. Under the new model, Reuters will allow visitors to access a limited number of articles before prompting them to subscribe for full access. Previously, the site required registration but did not charge for content.
This pricing is significantly lower than the $34.99 per month Reuters had initially considered charging in 2021. It aligns more closely with broader industry trends, where news outlets are balancing accessibility with profitability. For comparison, financial news rivals Bloomberg and The Wall Street Journal charge $34.99 and $38.99 per month, respectively. CNN also recently launched a $3.99 monthly paywall for certain content.
Reuters President Paul Bascobert commented on the launch, stating, “This new subscription plan ensures Reuters can expand the reach of its award-winning coverage at an affordable price, while allowing us to further invest in our reporting and products for subscribers.”
The delayed paywall, initially set for launch in 2021, was postponed due to a conflict with LSEG. Reuters’ partnership with LSEG, which includes a 30-year agreement guaranteeing payments for Reuters’ news supply, accounts for a significant portion of the company’s revenue. Details on how the dispute was resolved were not disclosed in the latest statement.
INSIDER TAKE
Reuters’ decision to set its subscription price at $1 a week is a strategic move to attract a broader audience in an oversaturated market. This pricing strategy is notably more accessible compared to premium outlets, likely aiming to convert casual readers into paying subscribers without imposing a significant financial burden. While this approach provides Reuters with the potential to diversify its revenue streams, the real challenge will be retaining subscribers and fostering long-term customer loyalty at such a low price point.
The delay caused by the dispute with LSEG highlights the complexities of balancing longstanding commercial agreements while pursuing new revenue models. Reuters’ ability to proceed with this subscription plan signals that the company is ready to adapt to evolving industry standards in digital content monetization. The global expansion of its subscription offering will be crucial to its success in an increasingly competitive market.