Mather’s latest benchmark report reveals that, despite digital-only subscriptions outpacing print (66% vs. 33%), print still drives nearly 75% of total revenue — underscoring its critical role in the overall revenue mix.
Traditionally, publishers have relied on aggressive print pricing to counter declining advertising revenues. However, there’s been a noticeable shift toward more conservative strategies in recent years, bringing the concept of the “print runway” to the forefront. Decision-makers are now focused on how they can sustain print revenue while reducing costs and funding their digital transformation.
So, how can publishers navigate this transition effectively? In this article, we’ll explore the strategic considerations publishers must address as they evaluate their print runway and plan for their digital-first future.
While industry trends indicate that more conservative print pricing is becoming the norm, publishers must carefully evaluate their unique circumstances to gauge how much pricing pressure they can apply to boost revenue, and what level of circulation decline they can tolerate — all while staying aligned with their overarching North Star goals.
When weighing the pros and cons of extending the print runway, key considerations include:
Shortening the runway (i.e. aggressive pricing path)
Elongating the runway (i.e. more conservative print pricing)
Understanding your overall level of digital readiness, along with key metrics like digital revenue share and subscriber penetration, is crucial to determining the right strategic direction for your business. The matrix below illustrates how publishers fall into different categories based on these factors, ranging from "Lagging" to "Best in Class."
For publishers that are more advanced in their digital transformation, like The New York Times in the "Best in Class" segment, adopting more aggressive pricing strategies may be a viable option. These publishers have made significant strides in growing digital subscriptions and revenue, allowing them to shorten the print runway and accelerate digital-first initiatives.
However, publishers with more limited digital reach, such as sample Publisher “A” in the "Lagging" segment (with ~1.5% digital penetration, calculated as 22K subscribers out of 1.5M monthly users, and only 15% of revenue from digital) may face greater challenges in adopting such aggressive tactics. In a crowded media market, print still offers valuable differentiation. For these publishers, extending the print runway is often the wiser choice, providing more time to evaluate and nurture digital revenue growth before fully transitioning to a digital-first model.
For publishers with moderate digital penetration, like sample “Publisher B” (with 5% digital penetration and 25% of revenue from digital), a balanced approach is key. Extending the print runway allows them to maintain stability in their print business while they fine-tune their digital subscription models for growth.
Closing Thoughts
As with any strategy, there is no one-size-fits-all solution. We advise publishers to carefully assess their unique circumstances, aligning pricing strategies with both immediate challenges and long-term goals. Partnering with experienced experts can accelerate this process and help ensure you're not missing out on revenue opportunities.
At Mather, we help publishers refine their pricing strategies to support digital transformation through business diagnostics and turnkey solutions like Market-Based Pricing (MBP), designed to grow subscriber revenue while minimizing churn. Click here to find out how one publisher harnessed MBP to boost ARPU, grow revenue despite print declines, and fund their digital transformation!
Peter Doucette is senior managing director of Mather Economics and can be reached at pdoucette@mathereconomics.com. Matt Lindsay is president of Mather Economics and can be reached at matt@mathereconomics.com.
