Micropayments and subscriptions: An empirical test of young audiences’ preferences for paying for online journalism

This study tests audience preferences for micropayments and subscriptions as payment methods for online journalism, addressing a persistent gap in both scholarly and industry research. While micropayments have long been suggested as a solution to the funding crisis of online journalism, empirical evidence of audience receptiveness remains limited. Drawing on survey data from 2720 Danish respondents (aged 18–40), we explore whether users prefer micropayments or subscriptions, how preferences vary across demographics and whether they differ by content type (articles, podcast episodes and videos). Guided by rational choice theory and the concept of mental transaction costs, we hypothesize competing preferences for micropayments and subscriptions. Results indicate that subscription is consistently favoured over micropayments across all content types, with only about one in eight respondents expressing interest in micropayments. Gender and age show weak but significant correlations with micropayment preference, while income and education exhibit negligible effects. These findings suggest that the mental transaction costs that stem from the cognitive burden of repeated purchasing decisions outweigh the potential advantages of micropayments. The study contributes empirical evidence to debates on the monetization of online journalism and underscores the need for further theorization of mental transaction costs. Industry implications point towards strengthening subscription models rather than pursuing micropayment strategies.