AUCKLAND, Wednesday: New Zealanders have put a high value on the importance of quality journalism by backing the NZ Herald’s digital news subscription service, according to NZME ceo Michael Boggs.
“We set ourselves a target of 10,000 paid subscribers within 12 months of our launch on 30 April. I’m absolutely thrilled to confirm that we have signed up our 10,000th paid Herald Premium subscriber in fewer than six weeks.
“Pleasingly, over 35% of subscribers have opted for an annual subscription; I couldn’t be more delighted for our hard-working editorial teams,” said Boggs.
NZME based its initial subscription targets on an analysis of how other subscription services had launched overseas. These assessments are largely based on how many digital users converted to paid-up supporters.
“Premium readers accessing nzherald.co.nz via the website spend three times longer with us than non- subscribers.”
“It’s a real boost for all of our journalists,” said Herald Premium editor Miriyana Alexander. “Our loyal readers have been buying our newspapers for decades and it’s great to see so many putting that same value on the journalism that we deliver on our digital platforms as well.
“The other impressive number is the length of time Premium subscribers are spending on our site,” she said. “On average, Premium readers accessing nzherald.co.nz via the website will spend three times longer with us than non- subscribers.”
Overall, the NZME business is on track with its target of a reduction in debt of between $10 million and $15 million in FY 2019.
Advertising headwinds
There are, however, some advertising headwinds, which have placed pressure on print advertising revenue, which dropped from a year earlier. But this has been offset to some degree by growth in radio and digital revenue.
Trading revenue for the business for the 2018 financial year was previously reported at $378.4 million, down 2% from a year earlier.
The company has said that it expects to spend $1.2 million in calendar 2019 on its digital subscription service, including the cost of globally syndicated content and ongoing support.
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