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Paywall Policy Learning in Digital News Media

Subscription-based online newspapers usually offer non-subscribed users a certain number of free articles in a period of time, and then directs them to a page (called paywall) asking for subscription. This approach (also known as metered or fixed paywall) does not consider the user's reading history nor the articles that the user may read in the future, and consequently, it may disengage many potential subscribers. To that end, we propose adaptive paywall mechanisms to make optimal paywall decisions (i.e., showing the article or the paywall) by balancing the benefit of showing the article against that of presenting the paywall. We define the notions of utility and cost which are used to define an objective function for the optimal paywall decision problem. We propose the Lookahead policy (LAP) and QPaywall policy (QP) as two data-driven approaches to solve the adaptive paywall problem. While the LAP method makes paywall decisions on the fly by simulating trajectories of article requests using Monte Carlo sampling, the QP approach is based on reinforcement learning and learns a neural network-based action-value (Q) function for this purpose. We compare advantages of the proposed approaches and discuss the practical considerations of using them in a real environment. Empirical studies on a real dataset from a major newspaper in Canada show that the proposed methods outperform several baseline approaches in terms of various business objectives.