Publishers spent 2022 calibrating their subscription approaches to ensure they aligned with their editorial output, the interests and demands of their audiences, and their own business needs. Those efforts evolved and matured in 2023 as subscriptions became a more central part of many publishers’ audience offerings and business models.
The value of audience revenue became apparent as advertiser demand softened, and many publishers moved beyond vanity growth metrics and “subscriber volume at all costs” mentalities to focus on revenue generation instead.
Meanwhile, fears of “peak subscription” appeared largely unfounded as consumers continued to grow their spending and add more publisher subscriptions to their portfolios, although other headaches emerged as regulatory scrutiny around subscription cancelation processes intensified and the rise of artificial intelligence threatened to undermine their subscription offerings and broader businesses.
For subscription publishers, the year was defined by a handful of key themes:
- Subscription revenue showed its value in a tough advertising market
- Fears of “peak subscription” appeared unfounded
- Emphasis shifted to revenue growth vs. subscriber growth
- Subscription offerings became more fragmented
- Regulatory scrutiny around cancelation processes intensified
Subscription revenue showed its value in a tough advertising market
Publishers’ businesses faced headwinds throughout 2023, but subscription-first publishers said their revenues held up relatively well as other revenue streams faltered. As the year progressed, publishers reported softening demand from advertisers and sponsors and said that those that continued to spend demanded more bang for their buck in terms of deliverables and campaign performance, which ate away at considerably at their margins.