logo
Log in using TwitterLog in using Facebook Forgot login?Register
News & Features Technology Paying for the Web

Paying for the Web

Written by Amanda Andrews on Wednesday, 03 June 2009 16:55
Rate this item
(0 votes)

Who started the rumour that all online information should be free, and why didn't we challenge this argument when it was first made?

The following point was put to me earlier this year by Time Inc's chairman and chief executive, Ann S. Moore. 'I say this in college classrooms and they start to throw their shoes at me. I say: "Kids, your food is not free, your cars are not free and your clothes are not free. Good information costs money. Someone has to pay for the Baghdad bureau."'

She has a point – but unfortunately this message comes about a decade too late. We have become accustomed to getting our news for free and many of us will be reluctant to turn back. Only a couple of years ago, charging for general internet news was deemed insane by the most reputable news organisations.

padlockHowever, Moore’s message is feeding through to the rest of medialand. "The current days of the internet will soon be over," declared Rupert Murdoch earlier this month, announcing that The Sun’s and The Times’s websites would soon charge for a premium subscription service. Independent News & Media is considering charging online users, while Carolyn McCall, the chief executive of Guardian Media Group, has said she is exploring the idea of putting her newspaper's "specialist areas" behind a pay wall.

As advertising revenues come under increasing pressure, traditional media groups have been forced to do something they either tried and failed to do a decade ago or swore they never would do – charge for online content.

Even The New York Times recently indicated that it may start to charge for access to its website, less than two years after terminating an earlier online-subscription service

And Time magazine recently made a cover story of the dilemma. In 'How to Save your Newspaper', Walter Isaacson, a former managing editor of the magazine, proposed a plan to make readers pay for news online through a simple one-click micropayments system.

But I am still not convinced that newspapers’ hiding their online content behind pay walls works.

Most UK newspapers have spent the past six months pondering over what to do. Do they want to risk losing advertisers, as user numbers will inevitably fall if they turn subscription? And, will people actually pay for content when they have become accustomed to getting news for free?

It has been long proven that people will pay for specialist content. Just look at the websites for leading trade magazines or specialists newspapers such as the Wall Street Journal.

Faced with the decision whether or not to drop The Wall Street Journal's online monthly fee when he acquired the title, Rupert Murdoch chose to keep it. A wise choice, it appears, with subscriptions up 7pc in 2008 as the global economic downturn hit.

But the Journal is a rare case, thanks to its global appeal and specialist focus - and its remarkable growth is unlikely to continue when the economy eventually stabilises.

General news can be and will continue to be consumed online for free, whether or not Murdoch and rivals decide to charge. I certainly expect to get my online news for free after a decade of free ad-supported content. Newspaper groups need to be confident that their online offering – be it blogs, features or analysis – is gripping enough to get people to pay. While most may be proud of their content, most are still not convinced people will pay.

Furthermore, getting the payment method right is key. Many are unlikely to want to commit to a monthly subscription unless it is being funded by their employer. A system of micro-payments where you can pay per article may make greater sense but the technology needs to be quick simple and inexpensive. The right technology is just not there.

While not yet in the UK, the Kindle DX eBook reader, could prove a saving grace. While unlikely to be the force that saves newspapers, its huge capacity, non-reflective screen and wifi capability, could at least encourage online subscriptions and provide a greater offering to a wider readership.

In the US, struggling titles such as the New York Times and the Boston Globe are supporters of the device. Pilot schemes due for launch this summer will offer reduced-price, long-term eReader subscriptions to readers who live in areas where home-delivery is not available. Murdoch is the latest to recognise the Kindle DX’s potential and is looking to build a rival.

The truth is that even the mighty Murdoch does not know the answer and making the right decisions on if and how to charge users will prove make or break for many leading titles.

Amanda Andrews is Media Editor at the Daily Telegraph, Sunday Telegraph and Telegraph.co.uk

Last modified on Tuesday, 23 June 2009 11:06

Add comment


Security code
Refresh

Latest Comments

Community Coffee Lounge

Welcome to the Entrepreneur Country Coffee Lounge.

coffee_lounge

With a host of viral videos, games, cartoons and puzzles, its your time to relax.

entrepreneurcountry magazine

May                                                April
Click to view the full digital publication online                   Click to view the full digital publication online

Click here to view the latest issue of Entrepreneur Country Magazine with Charlie Mullins, Paddy Ashdown, Julie Meyer & more.

Related Media

Facebook/Twitter

EC Tweets

Loading...

Last 4 tweets from EnCountry:

Entrepreneur Country Polls

Did this budget help British Businesses or paper over the cracks?
 
 
Total votes: 8
Category: Better Business