What exactly is a Paywall? (Definition & Examples) |

Aug 28, 2023

If you've tried to read an article, but were blocked or hit a monthly limit on something, you've hit the paywall. Paywalls are all around us, and they're becoming more becoming more and more prevalent because subscription and membership businesses flourish - 78% adults have a subscription of at least one type.

In this article We'll tell you what a paywall can be, introduce you to the different types of paywalls, as well as provide you with plenty of examples of paywalls we each day face.


    The post...


    What is a "paywall?

    Examples of paywall sites

      Types of Paywalls

    Paywalls: The reasons behind them

    Things to think about prior to setting up the paywall

      A few examples of companies who can benefit from paywalls.


What exactly is a "paywall?


Paywalls are a type of digital gate which is utilized for monetizing content, whether completely or partially restricting users from accessing the content until a payment is received. Paywalls are typically found on platforms and sites with subscriptions However, chances are that you've had paywalls happen on many of your favorite brands, from your streaming apps and games to dating sites.


 - SingleEvent Paired Light


In any case, if you've seen any display that reads, "Log in or subscribe to continue using our site" or "buy additional options" you've experienced hitting an online paywall.


So what is a paywall like?


 

  • A newspaper requires subscribers to access more than five stories.        
  • The free subscription site that offers paid-for subgroups for certain groups and premium subscription courses.      
  • A blog can create a "members only" premium area by placing a a paywall around some of the content.        


 - Challenge Fam - Feed Paired Dark


Examples of paywall sites


 

  • The New York Times introduced a paywall soft in 2011and, in 2020 it became a greater income source than newspaper print subscriptions. It has more than 8 million subscribers .      
  • Wired introduced a paywall in the year 2018 and has announced an 300 percent growth in the number of subscribers within the first year of operation.      
  • Substack boasts 1 million members for individual newsletters through the website. Readers can sample a couple of each magazine's archive to see whether they enjoy it however, they must then be able to pay for the subscription.    
  • The Economist is subscribed to by 1 million people and uses a paywall that gives readers access to the first few paragraphs of an article. However, they have to pay for continue reading.        


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Different types of paywalls


Not all paywalls are created equal; brand owners and creators are continually exploring ways to manage paywalls to maximize revenue and keep their users (and perhaps growing!) Here are three of the most commonly used kinds of paywalls available.


Soft Paywall


In many cases, paywalls are integrated into web pages or other content in they allow visitors to try a sample and buy a subscription for the premium portion of a product or service. It is referred to as an "soft" paywall. A soft paywall allows certain portions of content, articles, videos such as. can be accessed for free.


As an example one could start an online community for free, but charge for an annual premium membership which would include access to additional features-like online courses or masterminds.


    A few examples of the soft paywall


 

  • Medium : The blog's website allows visitors to view some posts for free. However, some posts are gated for premium subscribers only.      
  • Spotify : The music-streaming platform allows users to listen to a limited amount of audio and music at no cost (with ads) in addition to the ability to pay to upgrade to Spotify premium.      
  • Tinder : Tinder allows anyone to access the platform free, but they can purchase premium plans to gain additional benefits such as more likes and views.      


Spotify -


Paywall Paywall


A "hard" paywall, in the other hand, means that content is locked and unaccessible for purchase. It can be difficult to sell since customers aren't able to enjoy an "free trial" effect of the soft paywall. A hard paywall might be an ideal solution when the contents are distinctive or unique enough to warrant subscribers will spend the money upfront.


    A few examples of a paywall that is hard to breach.


 

  • Netflix is not a paid or ad-supported edition of Netflix (as as of this writing). If you don't pay an annual fee, you won't pass through the cost-per-view.    
  • The Wall Street Journal: Contrary to New York Times, the Wall Street Journal gives nothing away for free. You have to be one of its 3.5 million readers to see at least one story.    


Paywalls - Wall Street Journal


Metered Paywall


Metered paywalls are when you have access to content for a specified period of time or for a set number of uses before you're obliged to pay. Metered paywalls often reset monthly.


Numerous news sites employ this model such as offering readers 5 free articles a month before charging for access. Also, it's commonplace to SaaS businesses to employ a metered paywall for limiting a particular plan. In the case of your service, for instance, it may comprise "20 reports a month"--that's a type of metered paywall too.


"Soft paywall" and "metered paywall" are often employed interchangeably. However, the different between them is that soft typically is used to refer to premium sections of content, while metered is referring to a paywall once the user has used a certain quantity (more on this subject in a minute).


    A few examples of metered paywalls


 

  • The New York Times employs a paywall that is metered, allowing readers to access 20 stories per month without prompting for a subscription.      
  • [Skillshare](https://www..com/resources/skillshare-alternatives): Members used to be able to watch a certain number of courses free every month before being prompted to pay for a membership (note they don't do this anymore).    


paywall - NYT 2


Paywalls: The reasons behind them


Then why are brands allowed to have paywalls? If done right an effective paywall will help creators and companies get what they want: money increase, more users or both. Let's see how.


 

  1. Creating predictable revenue Paywalls are a great way to monetize content and create the most, subscription-based recurring revenue businesses are able to thrive off. The New York Times made more than $1 billion in digital subscriptions in 2022, signifying that the paywall was paying for itself.    
  2. Get new members on board: Because that the New York Times has a metered paywall, it also functions as a free trial. Readers can get a taste for the journalism and pay if they want more. Through membership-based communities, certain hosts use soft or metered paywalls in order to grow-since people can come into the website for free but change to a paid subscription in case they wish to upgrade.    
  3. Improved user experience: ads can be a nuisance, and plenty of people are willing to be willing to pay for them. Through brands such as Netflix as well as Disney+, experience has shown that users are willing to shell out money for access and platforms do not need to disrupt the user experience by displaying annoying advertisements.    
  4. Quality signals: A paywall can signal that you're committed to quality. In the end, if users pay to access your publication or view your content, it had better be good.    
  5. Increased dedication: We watch the internet communities and have observed that typically paid membership communities are the most active. People value what they pay for, however, it's difficult to convince people to join the free communities seriously (that's why Facebook Groups aren't great).    


Things to think about prior to launching the paywall


 

  • The balance between paid content and trial The majority of brands find finding the perfect balance in using content to entice new customers and making money from the content is a delicate process. Even big companies are mining their data in order to determine how they can extract as much revenue from the paywall without jeopardizing expansion.    
  • Competitors: It is important to understand your competition-can you and your customers get the same thing in exchange for a fee elsewhere? (Often the answer is no however you'll have to know your value proposition. )    
  • Other monetization options paywalls aren't the sole way to monetize content. From course ads and patronage to sponsorship there's a different model that is more suitable to your company's needs.    
  • User Experience  The HTML0 User Experience you find that putting up a paywall, or a metered paywall significantly reduces the overall quality of your users' experience, you might want to reconsider it.      


 - Graphics - Courses and live streaming - Galaxy DAO


Examples of businesses who can benefit from a paywall


Here are a few examples of businesses who could profit of a paywall


 

  • Journalism: We looked at examples of Newspapers (e.g. The New York Times) above. Paywalls breathed energy into journalism, and helped keep many papers and magazines in business.    
  • streaming service  such as Spotify up to Disney+, most of us subscribe to at the very least one streaming service with a paywall.      
  • Online communities: At Mighty We see the communities that have paywalls flourishing each day. From memberships, premium content to courses community-based learning, they are an exclusive, member-led business.    
  • Marketplaces : Amazon Prime provides a paywall which allows you to get faster and more affordable shipping.      
  • Software  A majority software monetizes with paywall in some form or other such as Adobe Creative Cloud or Evernote or Dropbox.      
  • Content creators : Content creators have the option of monetizing their work through paywalls whether using Medium for blogging or writing the content themselves.      
  • The academic research : Most academic journals are paid for by paywalls, and later offer memberships to institutions. Often libraries contribute to the costs so that their users can access the journal.      


They are a great way to monetize content while increasing your reputation. They're getting more popular, and you'll probably see a lot of companies that offer paywalls in the coming years.


You can now read: How you can make money from blogging