How publishers successfully diversify their revenue sources: 3 recipes for success from practice

According to the Reuters Digital News Report 42% of publishers are planning to invest in new products for younger target groups. 20% see international expansion as another promising product development opportunity. This shows that "business as usual" is no longer an option - the publishing industry needs to rethink its business models.

The days of one-sided revenue models are over. If you want to remain successful in the long term, you have to rely on a diversified portfolio. In this article, we take a look at the industry's most pressing challenges, analyze successful diversification strategies and point out concrete steps for action.

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The 3 biggest challenges for publishers in 2025

1. decrease in social media traffic

Until a few years ago, social media was one of the most important sources of traffic for publishers. But the days when Facebook and X/Twitter were reliable sources of clicks are over. According to the Reuters Digital News Report, traffic from Facebook to news sites has plummeted by 67% in the last two years. Twitter/X has generated 50% less traffic from publishers.

The effects are serious:

• Many news sites are experiencing a decline in advertising revenue because fewer users are accessing their content.
• Attracting readers via social networks is becoming more expensive, as paid advertising is often the only way to achieve relevant reach. ‍
• Young target groups are more likely to consume news via TikTok, YouTube and messenger services than via traditional news feeds.

Solution approaches:

• Strengthen your own channels: Newsletters, push notifications and other direct relationship channels are becoming increasingly important. ‍
• Use SEO as a core strategy: Organic search results via Google Discover & Co. are more important than ever. ‍
• Build communities: Encourage closed groups or dedicated platforms for reader interaction. ‍
• Include alternative platforms: YouTube and TikTok should not be seen as competitors, but as distribution channels.

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2. dependence on digital subscriptions

Digital subscriptions were long regarded as the future of journalism. But the market trend shows: Growth is slowing down significantly. According to the Reuters Digital News Report, 73% of publishers report a strong or moderate increase in digital subscriptions, but 28% see stagnating or declining figures.

‍Whyis this problematic?

• The market is saturated: Many readers already have digital subscriptions and do not want to use additional paid services. ‍
• Different willingness to pay: While some target groups are willing to pay for in-depth journalism, others prefer free news. ‍
• Competition from independent creators: Platforms such as Substack or Patreon enable journalists to offer their own paid newsletters or podcasts that compete with traditional publishers.

Strategies for diversification:

• Micro subscriptions: Instead of monthly subscriptions, pay-per-article models or daily passes could be tested. ‍
• Personalized offers: AI-supported paywalls can approve or block items based on user interests. ‍
• Bundling models with partners: Cooperation with streaming services or specialist publishers could attract new subscribers.

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3. influence of AI and technological disruptions

Generative AI is changing the way content is created and consumed. 87% of media companies see AI as a transformational factor for their editorial teams. Search engines such as Google also emphasize that it is not the origin of content (human or AI-generated) but its quality and relevance for users that determines the ranking. High-quality journalistic content therefore remains competitive as long as it meets the established SEO and quality criteria.

‍Risksfor publishers:

• Readers use AI assistants (e.g. ChatGPT) directly instead of visiting news websites.
• Google and Bing are already testing "AI Overviews", which answer questions without users having to click on a source.
• AI can generate fake news that is difficult to distinguish from journalistic reports.

Strategies for publishers:

• Using AI for support: Automated transcriptions, summaries and image processing accelerate workflows. ‍
• Hyper-personalization: Smart recommendations and individual news feeds improve reader loyalty. ‍
• Trustworthy content as a USP: Readers pay for exclusive analyses, opinion pieces and background reports that AI cannot deliver.

Examples of successful diversification Successful publishers are increasingly relying on innovative strategies to diversify their business model and tap into new sources of revenue. Three companies that have implemented this particularly successfully are Madsack, Axel Springer and Börsen-Zeitung. Their different approaches show how publishers can rely on digital transformation, technological innovations and target group-specific content to achieve sustainable growth.  

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1 Madsack: Transformation from print to digital

Strategy: The Madsack Media Group is pursuing a consistent digital-first strategy for the future, which aims to gradually convert readers from print to digital subscriptions without losing existing print customers. A central component of this strategy is the early discontinuation of printed editions in selected regions and the equal positioning of e-papers as a fully-fledged alternative. A particular focus is on structured support for subscribers during the changeover in order to increase acceptance of digital products:

• Print subscribers were informed about the changeover at an early stage and received support in the form of events and device training to make it easier for them to access the e-paper. ‍
• Additional digital offerings were introduced to appeal to younger readers, including exclusive newsletters and Plus subscriptions with expanded content. ‍
• Dynamic upselling strategies helped to attract print subscribers to additional digital content and retain them for the digital product in the long term.

Result: According to Henry Lohmar, Editor-in-Chief of Märkische Allgemeine Zeitung (MAZ), the change was an important step into the future: "Although their average age is high, most of our readers remain loyal to their local newspaper and are willing to take a step into the digital future with us." The strategy proved to be extremely successful:

• 63 % of former print subscribers opted for an e-paper subscription.
• The number of digital Plus subscriptions rose by more than 300.
• 1,450 readers signed up for new newsletters.

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2 Digital transformation through podcasts, newsletters and e-commerce

Strategy: Rheinische Post Mediengruppe is focusing on digital offerings in order to reach new target groups and diversify its revenue models. The focus is particularly on podcasts, newsletters and e-commerce services.

• Podcasts: Rheinische Post has been producing several successful podcasts since 2016, including the news format Aufwacher, which was redesigned in 2021. ‍
• Newsletter: Five different newsletter formats provide up-to-date information at different times of the day and strengthen reader loyalty. ‍
• E-commerce expansion: In 2023, Rheinische Post acquired a 49% stake in best it AG via its subsidiary RP Digital GmbH in order to offer e-commerce solutions for retail companies.

Result: These digital measures enabled Rheinische Post to exceed the 100,000 digital subscriber mark, including 30,000 "Plus" subscriptions and 25,000 e-paper subscriptions. This makes it one of the leading regional media in Germany. ‍

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3 Axel Springer: AI as a growth driver

Strategy: Axel Springer comprehensively integrates AI to optimize editorial processes and develop new digital business models. The company has established a global team for generative AI and entered into a partnership with OpenAI to integrate journalism into AI technologies. The AI assistant Hey_, based on GPT models, helps to tailor content individually to readers. Further areas of application:

• Automated content creation: By using AI tools such as ChatGPT, headlines, teasers and other editorial content are generated automatically, which significantly increases production speed. ‍
• Personalized news feeds: AI-supported algorithms analyze reading behavior and display individual content in a targeted manner to increase the length of stay. ‍
• Optimization of editorial workflows: The integration of AI technology automates tasks such as setting tags and managing article metadata, making editorial processes more efficient.

Result: According to Axel Springer, the implementation of AI processes has significantly increased efficiency in the editorial department. Automation has reduced costs and improved content quality at the same time. The monetization of digital products is optimized through personalized content and data-driven paywalls, which increases user loyalty and conversion rates.  

Conclusion

The publishing industry is undergoing radical change, but with the right strategy, publishers can grow in the long term. Diversification is not a trend, but a necessity. Successful media companies rely on: New monetization models such as bundles or premium analytics, technology as an opportunity for personalization and increased efficiency, andtargeted expansion into new markets and target groups.

Would you like to find out how the Purple modular publishing solutions can help you to successfully master the challenges of 2025? Then arrange a demo now.