90% online content moving behind pay-walls

Online content providers are experiencing a reality check with two-thirds of media companies anticipating the end of ‘free for all’ content according to global pricing and marketing consultancy Simon-Kucher & Partners.

A global pricing study from the firm suggests that only 27 per cent of media companies expect significant profit margin (EBITDA) increase in the next three years. As a result of this negative outlook, two thirds of media companies expect the ‘for free all’ culture to come to an end, with the expectation that within three years, the majority (90 per cent) of content will be behind paywalls.

The media sector possesses the most pessimistic outlook compared to other industries according to the firm. Only 38 per cent of media companies have a dedicated pricing function and this is the lowest across industries participating in the survey – 41 per cent lower than the average. Overall, companies with active C-level involvement in pricing are 18 per cent more likely to put through a successful price increase, according to the study.