Vox initiates subscription-based service as news outlets strive to widen income sources.

Vox initiates subscription-based service as news outlets strive to widen income sources.

On Tuesday morning, Vox is set to introduce an updated website to celebrate its 10th anniversary, along with a new membership program as the digital publisher tries to broaden and diversify its revenue stream. CNN reported this news on Monday, as Vox becomes the latest news platform to embrace subscriptions for financial growth.

The membership program costs $5 monthly or $50 annually, and members gain access to a variety of exclusive content. This includes newsletters, digital magazines, an extra episode of "The Highlight Podcast," live online versions of audio shows, engaging video interviews, and more.

Vox's content will still be accessible for everyone for free. However, the membership program aims to provide extra content and is the only area of the site that will be behind a paywall. Vox will count the revenue from subscriptions as an additional stream, maintaining a mix of revenue sources like advertising and grants to create a hybrid model.

Vox's popularity in collecting reader donations since 2020 became the catalyst for establishing a members-only program. The outlet received more than 100,000 donations, Priyanka Arya, the media company's consumer revenue chief, shared with CNN. In order to deepen reader engagement, they have also recruited Bill Carey as the executive director of memberships.

Sharma emphasized how crucial it is to diversify Vox's revenue options and operate strategically. As challenging times prevail for news publishers, who've endured significant layoffs in recent years, significant changes like Google's recent announcement about integrating artificial intelligence into its search engine has caused further worry about the future of news outlets.

"That’s what worries me, and it should worry everyone in journalism," Sharma said.

Considering the increasing challenges in the industry, creating direct relationships between news outlets and audiences is more necessary than ever. Hence, several major news rooms are planning to explore developing and bolstering subscription models to complement other revenue streams.

Sharma shared that she hopes to find solutions to some of the critical issues facing the world in the upcoming decade, expanding Vox's coverage of a wide range of topics from climate change to gun violence to loneliness. She stressed the value of addressing these pressing issues while also offering insights and potential actions individuals can take to contribute to a better society.

"Vox was such an incredible bet to make. It was offering something very specific at that time, which still resonates ... Vox pioneered the explainer format and that is everywhere today," Sharma commented. "We’ve explained the news. The next step is shaping the world."

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Vox's membership program, which includes newsletters, digital magazines, and exclusive podcast episodes, is another step for the digital publisher to diversify its revenue stream, moving beyond traditional advertising and grants. With the new subscription service, Vox joins other news platforms like CNN in embracing subscriptions as a means of financial growth.

Source: edition.cnn.com