The relationship between consumer characteristics and willingness to pay for general online content: Implications for content providers considering subscription-based business models

An increasing number of digital content providers are considering ways to charge consumers for content that was previously free. A key question for these companies is whether a change in business model from one that is advertising-based to one that is subscription-based likely to generate more revenue? Hence, the purpose of the research is to profile consumers who are more likely to pay for online content and estimate the amount they are likely to pay. Data from a nationally representative probability sample of 755 internet users are used to estimate the model. The results indicate that while the estimated amount paid for digital content is related to income and education, willingness to pay is more related to age and gender. The findings have important implications for digital content providers who are evaluating the possibility of shifting from an advertising supported content-for-free model to a subscription supported pay-for-content business model.