The internet has significantly transformed how news is produced, consumed, and distributed. As a result, the news
industry has transitioned from ad-supported to subscription-based models regulated by digital paywalls. In light of this
disruption, it’s crucial to investigate not only how news consumers adapt to this change but also how economic incentives
shape content coverage. We analyzed the staggered adoption of digital paywalls by 17 regional U.S. newspapers over 17
years in a difference-in-difference framework to examine the impact of paywall adoption on topical news content coverage.
Our results reveal a small but significant decrease in local and soft news coverage, with varying effects across different
urban contexts. Specifically, local news coverage experienced a more substantial decline in smaller cities (population <
500,000) and regions experiencing an influx of younger residents (age < 40 years). Conversely, soft news coverage increased
in areas with a younger demographic influx, indicating a strategic shift by newspapers to cater to digital-savvy audiences
and adapt to changing consumption patterns. Our findings underscore the delicate balance between financial imperatives
and editorial choices in the newspaper industry and highlight the need for ongoing research into the effects of digital
monetization strategies on journalistic content creation, media plurality, and civic accountability.
