How Süddeutsche Zeitung Partnered with Sourcepoint to Deploy a Contract Solution

The Süddeutsche Zeitung (SZ) is one of the best-known, most prestigious daily newspapers in Germany. It also enjoys the highest circulation for a national quality newspaper. Published by Süddeutsche Zeitung GmbH, SZ has been reporting on political, social, cultural, business, sport and science issues since October 6, 1945. SZ offers extensively researched information across its websites and apps. This quality journalism is financed by two key revenue streams, a paid content model and advertising.

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Overview

With the introduction of a contract solution, SZ has taken a slightly different approach to other publishers with “Consent or Pay” models.

In principle, the content SZ offers digitally is not freely accessible, but subject to a fee, i.e., every user of its websites or apps must sign a (usage) contract. This means that users of SZ’s digital offerings can decide whether they want to pay a fee for SZ’s services or provide data, allowing SZ to finance its operations through display advertising.

SZ has deliberately opted for the contract solution business model, taking into account the data protection principles, in particular the transparency requirement of the GDPR.

Admissibility of the contract solution

SZ bases its contract solution on the provisions of Sections 453, 327 et seq. of the German Civil Code (BGB), which regulate the handling of consumer contracts.

These regulations deal with the provision of digital content or digital services (digital products) against payment of a price. They also explicitly regulate the provision of digital products in exchange for the consumer’s personal data.

It is therefore deemed legally permissible to offer a contract of use in which the provision of personal data for advertising purposes is agreed in return for the use of digital content.

The user can therefore pay for the digital product either with money or with data. Data processing for advertising purposes can be revoked at any time by both the user and the company. The contractual relationship ends with the revocation.

Partnership with Sourcepoint and technical implementation

SZ has been working successfully with Sourcepoint since 2017 and switched to the contract solution at the end of 2022. Both the classic CMP and the contract solution were and are delivered via Sourcepoint’s Consent Management Platform, Dialogue.

All information on the tools used by SZ itself as well as the third-party providers and the processing purposes is provided before the contract is concluded.

The providers are marked as “technically necessary for the fulfillment of the contract” and therefore cannot be deselected.

SZ Plus subscribers, on the other hand, have the option of giving consent for data processing requiring consent or rejecting it completely. The requirements for consent are also met. According to Art. 4 No. 11 GDPR, consent is any informed and unequivocal expression of will. Such consent is also given in the context of contract termination.

“What I particularly appreciate about working with Sourcepoint is the fast response times when problems arise. As we use CMP throughout the Group and therefore many colleagues from different areas work with it, the regular exchange of best practice examples is very helpful,” said Claudia Waldraff, Data Protection Coordinator, Süddeutsche Zeitung.

Results

Several courts and the German Data Protection Conference (DSK) now recognize the validity of the contract solution.

The acceptance of the contract solution as an alternative to the common “consent or pay” models is growing steadily.

“Transparency is our top priority: users should be able to clearly see that they have to conclude a contract with us in order to use our digital services,” said Christine Fettich, Chief Product Officer, SZ. “Our high-quality content is therefore available either for money or by providing data.”

For more insights into how Sourcepoint clients have approached a “Consent or Pay” strategy, read our case study with Heise Medien