Kathimerini: How a 105 years old news organization embraced the digital revenue model

by Theodora Vasilopoulou, Editor in chief at kathimerini.gr & Christiana Thomaidi, Product Manager of Kathimerini

In a country where trust in the media is low and on the decline year after year (Reuters, 2023), reliable and up-to-date news information is absolutely essential more than ever before. Macroeconomic factors, such as the covid-pandemic brought behavioral shifts amongst readers in Greece, where digital consumption rose significantly. Shifts in advertising budgets in combination with the proliferation of online news sources and social media platforms posed a formidable challenge to traditional news outlets, necessitating innovative approaches to monetization and led to an economical reshaping of the way publishers diversify their revenue streams.

The commitment to quality journalism

By introducing a subscription option in kathimerini.gr, Kathimerini aimed to foster a more direct and sustainable relationship with its audience, emphasizing quality journalism. The decision to implement a subscription model stemmed from a confluence of factors, chief among them being the shifting landscape of journalism in the digital era. “As an organization, we recognized the imperative to adapt a revenue strategy that brings the reader into focus” mentions Lefteris Bidelas, Director of Digital Media and Lead of Kathimerini’s digital subscription product.

At the heart of Kathimerini’s decision lies a steadfast commitment to quality journalism. The subscription model would empower Kathimerini to prioritize substantive reporting, in-depth analysis, and investigative journalism. This renewed focus on content excellence not only would enhance the publication’s credibility but also enrich the reader’s experience, fostering a loyal and engaged subscriber base.

Need for innovation

As a 105 year old organization, Kathimerini is carrying a legacy of editorial expertise and high brand credibility. Therefore, embracing the digital subscription model represented a groundbreaking development in the Greek media landscape. Digital subscriptions might have gained traction globally, but their adoption in Greece has been relatively nascent, with many publications relying primarily on advertising revenue.

By pioneering this shift, Kathimerini set a precedent for other Greek media outlets, demonstrating the viability and potential of reader-supported journalism in the digital age. This innovative approach not only diversifies its revenue streams but also positions Kathimerini as a trailblazer in an increasingly competitive market, driving industry-wide conversations about sustainable business models for journalism.

The internal transformation journey

Kathimerini’s transition to the digital subscription revenue model epitomizes a multifaceted internal digital transformation journey, underpinned by the strategic assembly of a diverse team of experts. Kathimerini’s leadership team meticulously curated a multidisciplinary workforce comprising individuals with diverse skill sets and backgrounds. This team of experts spanned fields such as journalism, digital marketing, data analytics, user experience design, and technology development. Through collaborative efforts and cross-functional collaboration, this diverse team spearheaded initiatives to modernize editorial workflows, optimize digital content distribution strategies, enhance reader engagement, and implement innovative revenue models.

A transformative leap forward

Kathimerini made the bold move in 2023. The reader revenue model on the website, kathimerini.gr was adopted in three acts; 1) introduction of registration wall 2) website redesign, and 3) paywall launch.

A registration wall was introduced in March aiming to understand user’s willingness to read more and premium content by sharing first-party data such as their email. At the same time, engagement tactics were initiated such as a newsletter portfolio strategy. Mid-summer, in July, kathimerini.gr entered a new era with a fresh, clean-cut design, mobile-first approach, simpler and smarter navigation since UX plays a pivotal role in reader engagement.

After gathering enough data on how users in front and behind the registration wall consume content, a solid strategy had been formed and the paywall launched mid-October. Along the journey, the team had to overcome significant challenges. Theodore Giaouzis, CRM Manager of Kathimerini recalls that “We focused our launch strategy on 3 pillars: a) remove friction and provide a user-friendly subscription environment b) provide value to subscribers without “locking” content to our regular readers c) increase engagement through new content formats and by leveraging underperforming channels i.e. email.”

Embracing AI

Kathimerini’s embrace of technology extends beyond the introduction of its subscription model; since 2022 the newspaper harnesses the power of artificial intelligence (AI) to enhance the reader experience. Leveraging sophisticated algorithms, Kathimerini analyzes readers’ reading history and preferences to offer personalized content recommendations tailored to individual interests. By deploying AI-driven recommendation engines, Kathimerini ensures that each reader receives a curated selection of articles aligned with their tastes and consumption patterns. This personalized approach not only deepens reader engagement but also fosters a stronger sense of connection between the audience and the publication, reinforcing Kathimerini’s position as a trusted source of information in the digital realm.

The bet that cashed

Through the last 9 months, 60% of Kathimerini’s core readers (brand lovers) were converted from unknown to registered users. “We reached 40% of our yearly subscription target just 3 months after the launch” Theodore Giaouzis mentions with a subtle smile. Looking ahead, Kathimerini’s foray into reader revenue marks a pivotal step towards building a sustainable future for quality journalism in Greece. By prioritizing the needs and preferences of its audience, the newspaper laid the groundwork for long-term viability and relevance in an ever-evolving media landscape. As the digital revolution continues to reshape the media industry, Kathimerini’s bold decision serves as a testament to the power of adaptation, innovation, and unwavering commitment to journalistic excellence. In embracing change and embracing its readers, Kathimerini charted a course towards a future where quality journalism thrives, enriching society and fostering informed citizenship.