AI-Driven Privacy Trade-Offs in Digital News Content: Consumer Perception of Personalized Advertising and Dynamic Paywall

As digital media companies pursue sustainable revenue, AI-based strategies like personalized advertising and dynamic paywalls have become prevalent. These monetization models involve different forms of consumer data collection, raising distinct privacy concerns. This study investigates how digital news users perceive privacy trade-offs between these two AI-driven models. Based on Communication Privacy Management Theory and Privacy Calculus Theory, we conducted a survey of 336 Korean news consumers. Findings indicate that perceived control and risk significantly affect users’ willingness to disclose data. Moreover, users with different privacy orientations prefer different monetization models. Those favoring dynamic paywalls tend to be more privacy-sensitive and show a higher willingness to pay for personalized, ad-free content. While personalization benefits are broadly acknowledged, the effectiveness of privacy control mechanisms remains limited. These insights highlight the importance of ethical, user-centered AI monetization strategies in journalism and contribute to theoretical discussions around algorithmic personalization and digital news consumption.