How The Observer can build a profitable digital subs business

Congratulations to Tortoise Media on relaunching The Observer following its acquisition from The Guardian. It is a bold move and I have already signed up for your newsletters to see what comes next. First impressions of the relaunched website are strong: true to The Observer’s heritage but clean, modern and intuitive to navigate.

Tortoise clearly sees that the opportunity is bigger than a fresh look. Building a sustainable, profitable digital subscription business with more than 150,000 sign-ups is part of that. The chance to build one from scratch is rare – and it demands getting the basics right early, even while its journalism is initially free to read online.

Beyond well thought through product, content and subscriber acquisition strategies, I have found that growing a profitable subscription base needs particular focus on three areas: the customer journey; early and mid-life engagement; and a detailed subscription model that can guide every decision.

The first task is to optimise the customer journey. Every step, from seeing an offer to completing a renewal, must be seamless. Too often, publishers skip the hard work of mapping the journey in full, missing simple fixes that would lift conversions and cut cancellations. The Observer should map the whole flow – from first awareness to purchase, from early life to mid-life – and use it to eliminate friction at every turn.

Top tip: Test every step of the customer journey yourself – from subscribing to cancelling. Small frustrations at any stage will quietly undermine growth

Subscriber engagement must be front and centre from day one. Winning a subscriber is only the start; the first 24 hours often decide whether they stay. At The Times the data science team could predict with incredible accuracy whether someone would renew their subscription after a year depending on what they did on the first day after signing up. A smart welcome sequence, personalised content tips and proactive customer support can be the difference between loyalty and early churn.

Top tip: Get new subscribers using and valuing their subscription immediately before doubts creep in

Mid-life engagement also needs attention from the outset. Subscriber loyalty starts to slip well before it shows up in the numbers. Regular check-ins through subscriber-only newsletters, exclusive offers or simple touches like anniversary emails can help subscribers feel valued and connected long after the first few weeks.

Top tip: Subscribers need to feel seen. Plan early for small but regular touchpoints that remind them why they joined – and why they should stay

Alongside this, The Observer needs a robust, dynamic subscription model. A good model is not just a forecast – it is a tool to test different strategies. How many free articles should readers get before hitting a paywall? What price points pull best? Which bundles convert one-time readers into loyal subscribers? Modelling different scenarios allows the business to optimise quickly without betting the house on any one approach.

It is tempting, in the early days, to focus on branding, design and subscriber acquisition marketing. But lasting success will come from the less visible (and admittedly less glamorous) work: building a journey that converts, an engagement strategy that keeps subscribers loyal and a subscription model to forecast progress.

Top tip: Build and populate a detailed subscription model right from the start. It will help you track acquisition, churn and lifetime value against expectations — and give you a confident, credible way to report progress, even in the early days

As the digital relaunch gathers pace, there is also a valuable opportunity to strengthen The Observer’s independent online presence. I’m sure the team knows this, but right now, Google searches still point readers towards The Guardian. Building digital authority will take time, but it will be an important part of establishing The Observer’s brand and accelerating future subscription growth.

If it gets the foundations right, The Observer can build a subscription business as respected as the title itself. The whole industry is watching with interest – and willing it to succeed.

Michael Brunt is a co-founder of HBM Advisory and Tomorrow’s Publisher